Central Banks
Frank Smets on the ECB’s strategy review
The ECB’s DG of economics explains how expectations, communication, fiscal dominance, climate change and the Fed’s actions will be factored into the ECB’s delayed strategy review
UK government could give BoE ‘green’ asset holding remit – official
Government could alter BoE’s asset-holding remit to take account of climate-related risks – Hauser
Lawmakers propose reducing Bank Indonesia’s independence
Proposed law change could see finance minister sitting on rate-setting committee
Cash volumes rise in most jurisdictions
Annual growth in banknotes in circulation was 6.2%; or 5.2% on a weighted basis
China starts public trials of experimental CBDC
PBoC and Shenzhen local government issue digital yuan to test retail payments
Fed mulls action on short-term funding markets
Randal Quarles says it is “disappointing” that the Covid-19 crisis carried echoes of 2008
Information drives transatlantic policy spillovers – ECB paper
Tighter ECB policy often causes financial easing in US due to “information effect”, researcher argues
ECB will consider dropping market neutrality – Lagarde
Policy review will consider abandoning principle guiding asset purchases, but Bundesbank’s Weidmann is opposed
Swedish governor calls for laws to protect cash use
Ingves says Sweden must upgrade payments systems and move ahead with e-krona
SF Fed’s Daly calls for major action on US inequality
Fed can use new policy framework to cut inequality but Federal government must do more, says Daly
‘Wear and tear’ the main reason for banknote exchange
Covid-19 raised fears of banknote contamination, but historical exchange is mostly due to worn notes
G20 delays decision on poor countries’ debt relief
International efforts have been “unambitious, unco-ordinated and uneven” – prominent economists
Bankruptcies could trigger ‘protracted’ unemployment – BIS research
Reallocating resources quickly will help reduce the pain of adjustment, economists say
Spanish governor in favour of extending support to non-financial firms
Hernández de Cos favours grants and equity injections over debt issuance
Covid-19 may survive 28 days on banknotes and payment cards
New research suggests virus can survive for an extended period of time at room temperature
Counterfeits rise with issuance on multiple substrates
Average percentage of counterfeits per total volume in circulation is around 0.01%
People: RBI names new deputy governor
Career central banker gets promotion at RBI; ECB picks new comms chief; BoE FPC member reappointed