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Reserves

Kazakhstan devalues tenge by 18%

The National Bank of Kazakhstan has allowed the tenge's value to fall by almost a fifth against the greenback by substantially devaluing the currency's dollar peg.

China "notes" Geithner renminbi claims

An official at the People's Bank of China has said the central bank had noted US Treasury secretary designate Tim Geithner's claims that President Barack Obama believes Beijing is manipulating the renminbi to boost exports.

Assets are better kept with SWFs

Countries with a large foreign asset base tend to establish sovereign wealth funds as central banks' portfolio diversification tends is limited, says a new paper from the San Francisco Federal Reserve.

Russia, Nigeria devalue, shun "losing battle"

The Nigerian and Russian central banks have both said that they will allow their currencies to depreciate to protect their reserves stockpile. The actions signal Moscow and Abuja have acknowledged that the real values of their currencies have weakened in…

What's behind the fear of intervention?

Central banks' unwillingness to defend their currencies' value through foreign-exchange intervention despite abundant dollar reserves highlights a fear of intervening. Such a fear should lead central banks to review why they hold reserves, says Ousmene…

G7 voice concern on yen's rise, action likely

The G7 economies on Monday indicated that they could act on the yen's appreciation after the Nikkei 225 index of leading shares in Tokyo slumped to a 26-year low on fears a strong currency would cripple the country's exporters.

Mboweni: reserve growth must go on

The central bank does not regard the current level of foreign exchange reserves as excessive, given the economy's high current-account deficit, said Tito Mboweni, the governor of the South African Reserve Bank.

Dollar pegs should be reconsidered: King

Mervyn King, the governor of the Bank of England, warned on Wednesday that it would become "increasingly important" for countries to discuss abandoning their dollar pegs in the coming years.

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