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Reserves

Saudi must diversify investments, says top bank

The National Commercial Bank, Saudi Arabia's largest state bank, has called on the government to set up a sovereign wealth fund to cut the country's exposure to the greenback. The central bank should also look at de-pegging the riyal from the dollar.

Global slowdown may hamper US deficit financing

It may be harder to continue financing United States current-account deficits on such favourable terms if the recent wave of financial globalisation were to subside, research published by the New York Federal Reserve finds.

Currency flexibility needed for China's success

China will need exchange rate flexibility and, eventually, convertibility with open capital markets if it is to carry on succeeding as a large and diverse economy, says Maurice Obstfeld, an academic based at the University of California, Berkeley.

Renminbi revaluation would help dampen inflation

An appreciation of the renminbi against the greenback should lead to the Chinese authorities having more control over inflation, but would have little effect on the size of the United States trade deficit, says Marvin Goodfriend, an academic based at…

Subprime aftermath risks exacerbating imbalances

Financial market turbulence, together with a significant slowdown in the United States, could lead to and be exacerbated by a disorderly resolution of global current account imbalances, says the Bank of Canada's latest Financial System Review.

Norway's oil fund avoids FX after recent losses

The Bank of Norway said it would not buy foreign exchange for its sovereign wealth fund, the Government Pension Fund, in December. The announcement follows news that Nkr104.4 billion ($18.9 billion) was knocked off the value of the fund, a store of the…

UAE governor denies revaluation rumour

Sultan Bin Nasser Al-Suwaidi, the governor of the Central Bank of the United Arab Emirates, on Thursday moved to deny reports that the central bank would allow the value of the dirham to rise by up to 5% on Sunday.

Koruna's rise presents mixed blessing

Ludek Niedermayer, a vice governor of the Czech National Bank, parried calls for the central bank to act on the appreciation of the koruna and said that the increase in the currency's value made euro accession more favourable.

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