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Opinion

HKMA: Four pointers to financial stability

In a commentary published by the Hong Kong Monetary Authority, HKMA Chief Executive Joseph Yam says open, medium-sized and sophisticated international financial centres are attractive to international fund flows, which are often volatile. The task of…

G-7 falters in sending stern message to China

Although finance ministers from the Group of Seven industrialised nations were optimistic three months ago that China's new currency regime would help the global economy find its lost balance, they weren't so sure last weekend, this article published…

Comment: Latin America's challenge

The latest edition of Finance and Development, the IMF's quarterly magazine with reader-friendly summaries of its research activities, argues that Latin American central banks face significant challenges in restoring market confidence in domestic…

Why RBI is asking for autonomy

The Reserve Bank of India has been striving to attain a degree of autonomy for quite some time, according to this article published on 5 Monday December . And there are valid reasons for the RBI in doing so, it says.

Fed's end to rate increases in 2006

Federal Reserve officials will gather on 13 December and for the 13th meeting in a row will raise interest rates by a quarter-percentage point, this article published Tuesday 6 December says.

Comment: Reshuffle at the ECB?

When Otmar Issing retires from the ECB's 6-member executive board next year, Germany's seat is likely to be taken by Jurgen Stark, currently vice-president of the German Bundesbank.

Score so far is ECB, 1; Unsolicited advisers, 0

This article published on Thursday 1 December looks at the ECB's decision to raise interest rates at its most recent meeting, saying Europe's finance ministers would be better served by putting their own houses in order rather than telling Monsieur…

Comment: Turkey to target

Governor Sureyya Serdengecti's announcement on Monday 5 December that the Central Bank of Turkey will adopt formal inflation targets from January 2006 marks another step along the road of monetary policy reform that has seen Turkey shrug off its volatile…

Deflation looms as China's economy cools off

According to this article published Wednesday 30 November, Chinese officials seem to be pulling off an orderly deflating of their nation's economic bubble. Along with this year's deftly handled 2.1 percent revaluation of the yuan, the feat suggests…

G7 on money laundering & terrorist finance

We are committed to fight against those who seek to abuse the international financial system for criminal or terrorist purposes, a statement released on Saturday 3 December following the G7 meeting in London said.

Yuan is still pegged to the dollar

According to this article published Tuesday 29 November, there's a good chance that 2005 will be remembered in the financial markets as the year in which China blinked and made the yuan more flexible. This misconception should be snuffed out fast, it…

Comment: IMF criticises ECB's move

The decision by the ECB to increase interest rates by 25 basis points has come in for a fair amount of criticism in the press and from market analysts. On Thursday 1 December the eurozone's central bank received another stinging blow.

Yuan reform takes time

According to this article published on Monday 28 November, it's likely that China will permit further appreciation of its currency. What's certain, it says, is that Beijing won't allow itself to be seen as bowing to pressure.

Comment: None the wiser

The ECB has raised interest rates as expected, but its explanations for the much-criticised decision reveal little on its motivations or the future path of rates.

Hedge funds bet Asia will boost gold reserves

According to this article published on Tuesday 29 November, hedge funds, after sending the gold price to an 18-year high, are looking to China and other Asian central banks as the next big drivers of the precious metal.

Mexico's Ortiz targets inflation, spurs growth

While the Federal Reserve has been busy raising interest rates, the Bank of Mexico has headed in the other direction, cutting its key rate on 24 Nov for the fourth consecutive month, this article published Wednesday notes.

Banks' attitude 'key to gold's fortunes'

According to this article published on Friday 25 November, fresh impetus in the gold price and continued uncertainty about the outlook for the dollar could change central banks' attitude towards the gold reserves they have been inclined to sell off over…

Change in Fed statement is coming (either way)

According to this article published on Monday 28 November, the part of the Fed's statement on the balance of risks to the Committee's objectives has degenerated, as have all the Fed's formulaic means of conveying an inter-meeting bias or long-term…

Comment: Euro adoption order changes

Slovakia's decision on Friday 25 November to join the Exchange Rate Mechanism II (ERM II) with immediate effect took markets by surprise. Policymakers had been saying they were aiming at mid-2006 for joining the ERM II, which serves as a crucial…

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