Financial Stability
Draghi defends high-value euro banknotes
Letter to MEP Nikolaos Salavrakos outlines reasons for having €200 and €500 banknotes
Boston Fed continues research into payments
Researcher Scott Schuh adds to 2010 research into payments; finds rising cost of debit cards reduces their use
RBI’s Khan discusses outward Indian FDI
Reserve Bank of India deputy governor speaks about globalisation and growing Indian outward foreign direct investment
Tucker replaces Dudley as chairman of CPSS
Bank of England’s Paul Tucker to replace New York Fed’s William Dudley as head of international committee responsible for payments, clearing and settlements infrastructure
Dutch central bank warns on budget deficit
Netherlands Bank says “highest priority” is required for restructuring of Dutch public finances
South Africa must tackle capital flows ‘challenge’, says deputy governor
Sarb deputy governor says problems with capital flows in South Africa require “fresh thinking”; rand exchange rate fluctuations causing problems
China expands yuan cross-border settlement option to all exporters
People’s Bank of China permits all companies qualified for foreign trade activities to conduct international settlements in yuan, reports official Xinhua news agency
Dutch working paper investigates risk preferences
Netherlands Bank working paper provides new field of evidence on risk preferences over small stakes
Bank of Japan paper studies currencies and commodities
New research paper from the financial markets department at the Bank of Japan examines the relationship between so-called commodity currencies and commodity prices
Irish governor discusses credit conditions
Patrick Honohan, governor of the Central Bank of Ireland, says credit conditions for SMEs are "tougher in Ireland than anywhere elsewhere in the euro area"
IMF research analyses Brazil's high interest rates
IMF research paper assesses high interest rates in Brazil; suggests country could move towards lower rates if domestic savings increase to levels found in other emerging markets
CB.com poll finds support for financial transaction tax
Survey sees 56% of voters support the introduction of a financial transaction tax in Europe
Turkey reveals new currency symbol
Turkish prime minister leads ceremony at the Central Bank of Turkey to unveil the new symbol for the lira
Swedish authorities lambast maximum harmonisation for Basel III
Swedish Finansinspektionen and the Riksbank hold first joint meeting on macroprudential policy matters; again take on EU proposals to fix capital adequacy requirements
EFSF gets go-ahead for collateral enhancement facility
Plan to restore worth to Greek bonds as collateral is authorised; two days after the European Central Bank was forced to stop accepting Greek bonds following downgrade
Goodhart hits out at current macro-prudential focus
Economist Charles Goodhart agrees with Robert Pringle that risk and return incentives need to change at banks to ensure future financial stability. But permitting failures is a step too far
Bank of Portugal studies synchronisation of macroeconomic fluctuations
Research paper expands on the assessment of synchronisation of macroeconomic fluctuations across countries and regions; past assessment has been crucial for the debate on economic integration
Bank of Canada working paper investigates market movers
New research looks into whether central bank communications or media reports impact markets more
Volcker rule will not be ready for July, Fed chair admits
Expert predictions of delayed start date proven correct
Sri Lanka objects to ‘highly unwarranted’ downgrade
Central Bank of Sri Lanka unhappy with ratings alterations; issues lengthy statement objecting to the moves
BoE looking 'carefully' at banknote substrate choices
Chris Salmon, chief cashier at the Bank of England, says the possibility of polymer or hybrid substrate banknotes is being looked at by the central bank; no decision made yet
Reserve Bank of India working paper studies gold prices
Research looks at the links between gold prices and financial stability in India
Bank of Thailand governor discusses links with Germany
Prasarn Trairatvorakul highlights important trade link with Germany and commits to necessary reforms to improve Thailand’s competitiveness
Bank of Mauritius releases financial stability report
Latest report offers overview of international and domestic economic pressures impacting the country