Foreign Exchange
Liberian central bank attacks legislation as ‘forced de-dollarisation’
Central bank calls for gradual approach to prevent possible severe consequences
DNB paper looks at Fed’s use of credit swap lines
Federal Reserve used currency swap lines to calm markets in worst of crisis, paper says
Weaker franc gives SNB newfound leeway
The central bank may be able to slow or halt its massive foreign exchange acquisitions as the Swiss franc hits its lowest level against the euro since January 2015
Bank of Russia to buy forex to counter oil price changes
Central bank will sell or purchase forex at the direction of the finance ministry
Ukrainian central bank drops open forex auctions
National Bank of Ukraine aims to “minimise its presence” in the foreign exchange market by dealing directly with large banks via a closed system
Chinese law doubts holding back RMB internationalisation – paper
A Bank of Italy occasional paper plots the development of renminbi trading in Europe; future development may be characterised by rapid advances followed by slower periods, authors say
IMF staff raise concerns over Nigeria’s FX regime
Report voices worries about unintended consequences of FX restrictions, calling for more flexibility in exchange rate; Nigeria's authorities insist measures are temporary
Solomon Islands urged to include renminbi in exchange rate basket by IMF staff
IMF staff suggest changes to exchange rate regime; Solomon Island authorities will consider expanding basket, but reject suggestion of using cash reserve ratio to mop up excess liquidity
Guy Debelle reviews forex code progress ahead of first-phase release in May
Global code to be implemented as principles rather than rules; regulators may implement with element of variation depending on market participants, Debelle notes
Venezuela revamps foreign exchange regime
Government moves to exchange rate system, offering an official and floating rate to market participants; second sets of changes in as many years
Trinidad governor implies $500m injection failed to solve US dollar shortfall
Trinidad and Tobago’s Jwala Rambarran says domestic economy faces ongoing shortfalls of US dollars despite $14 billion in official sector forex assets; calls for diversification in the economy
US ‘unwilling to compromise' on derivatives rules, China vice-minister of finance says
Differences in accounting practices remains an urgent issue, Zhu Guangyao argues in a new China report; contributors critical of dollar's ‘exorbitant privilege' as sole reserve currency
Bank of China chairman on RMB internationalisation moving from strength to strength
The renminbi now ranks second in the world’s most-used currencies in trade finance, and its internationalisation has gone from strength to strength, says Tian Guoli, chairman of the Bank of China
Yi Gang on China's new foreign exchange philosophy
State Administration of Foreign Exchange director Yi Gang discusses five changes in China's foreign exchange management as well as the long-term value of the renminbi
Five problems with floating rate exchange regimes
Robert Aliber bemoans the dangers of sharp moves in major currencies that are the result of floating rate currency regimes, and answers five rhetorical questions related to monetary stability
Central Bank of Brazil extends swap auctions
Brazil’s central bank will continue to hold daily foreign-exchange swap auctions until March, but has reduced the amount on offer from $200 million to $100 million a day
Canada governor says ‘manipulating markets not in our game plan'
Stephen Poloz says attempts to influence exchange rate, including via ‘verbal guidance', would ‘do more harm than good'
Offshore renminbi has increasing impact on Asian exchange rates
How long the independent impact will last will likely depend on China's progress in liberalising its capital account, according to working paper from the Bank for International Settlements
Aid ‘surges' benefit countries where currency or inflation is allowed to rise
If large inflows of aid are ‘sterilised' in an attempt to curb inflation or maintain a set exchange rate, the economy will not feel the benefit of aid, a new IMF paper finds
Hungary targets forint entry into CLS
Hungary's central bank has committed itself to bringing the currency into CLS, and sources believe it could be added as early as next year
Russia 'welcomes' weaker currency as central bank sticks to float plan
Russian rouble is latest currency to be hit in emerging markets turmoil, but analysts believe the central bank will stick to its stated policy - or loosen their grip on the exchange rate
Security of hard pegs ‘illusory', IMF economists find
Re-examination of exchange-rate regime orthodoxy finds hard pegs are too risky, but 'managed floats' can have 'significantly lower risks'
Offshore RMB market booming in London, report finds
A study by the City of London Corporation reveals the City's efforts to become a global hub for renminbi business are paying off, with daily spot value reaching $4.8 billion last year
Dealers losing exclusive role in foreign exchange, BIS report notes
A new analysis of the 'anatomy' of the forex market notes the increasing influence of non-dealer financial institutions, following this year's triennial survey