Central Banks
Nepal to end circulation of banknotes featuring ousted king
Nepal Rastra Bank says it will phase out old notes depicting former monarch
Regional Fed staff to make way for foreign officials at Jackson Hole: reports
Reports say ticket allocation for regional Fed presidents and research directors will drop from two to one; New York Fed markets chief no longer on invite list
Korea’s Kim: interest rate hikes had limited impact
Bank of Korea governor Kim Choong-soo says current monetary policy stance remains accommodative
NZ’s Bollard: goods tax to have temporary inflationary effect
Reserve Bank of New Zealand governor Alan Bollard says recent tax on goods and services will only have temporary effect on inflation
Romania keeps coin featuring anti-Semite in circulation
Romania says it will keep a controversial coin featuring an anti-Semite despite calls for ban by Jewish community
Ireland’s Honohan defends Europe’s banks
Continent’s stress tests have lifted some of the doubt over banks’ underlying health, Central Bank of Ireland governor Patrick Honohan says
NY Fed reports dip in household debt
New York Federal Reserve says households now owe more than 6% less than in 2008
Canada throws weight behind Basel III, lauding output gains
Bank of Canada says forthcoming capital and liquidity ratios will save the country nearly C$200 billion; stresses that Canada must not rest on laurels, not having experienced banking crisis
Lebanon sets in motion plans to create SWF
Lebanese energy bill paves way for creation of sovereign wealth fund; government aide says proceeds will be managed by the Ministry of Energy and Water
Rand volatility a by-product of open economy: Sarb’s Mminele
South African Reserve Bank deputy governor Daniel Mminele says currency fluctuations are to be expected; stresses opposition to fixed exchange rate, dropping inflation targeting
Banks overestimate Basel III’s impact on growth: regulators
Basel body says hiking capital ratios by one percentage point will only cause 0.19% drop in potential GDP as lower rates will cushion the blow; industry bodies remain unconvinced
BoJ on dollar’s “exorbitant privilege”
Bank of Japan research notes that with great privilege comes great responsibility
Vietnam continues dong devaluation
State Bank of Vietnam devalues the dong for the third time in the past 12 months
BoE: Agents’ summary of business conditions (June 2010)
Bank of England’s June summary of business conditions finds retailers fear government spending cuts
Iceland slashes on strengthening króna
Central Bank of Iceland cuts rates by one percentage point as it prepares to buy foreign currency following króna gains
Beijing welcomes world into interbank capital market
People’s Bank of China grants foreign banks and central banks access to interbank bond markets for the first time; move inspired by need to internationalise the renminbi
ECB paper: global finance has little impact on Mediterranean
Real economy, not finance, impacts Mediterranean, research published by the European Central Bank posits
RBA minutes: inflation hits new low
Minutes of Reserve Bank of Australia’s August meeting show inflation fell to three year low in July
King writes third letter in a row to government explaining above-target inflation
Bank of England governor Mervyn King pens year's third letter to account for inflation of more than one percentage point above target; stresses health of long-term expectations, but economists unsure
Nordic and Baltic regions strike financial stability deal
Eight Nordic and Baltic countries sign Memorandum of Understanding on cross-border financial stability and crisis management
Are CoCos from cloud cuckoo-land?
The rationale for requiring banks to hold contingent capital is right. However, the mechanics of their operation and market implications may be subject to doubt, argues Charles Goodhart.
Bank's Haldane: regulators must consider changing shape and structure of finance
Executive director for financial stability at the Bank of England says regulators should reconsider the structure of financial contracts, markets, and institutions