Asia-Pacific
China’s cross-border clearing system expands to 189 countries
PBoC deputy governor Lu Lei says Cips processed $12.7 trillion of payments in H1
Securities lending banks engage external managers for new assets
Allocation to third parties rises year on year to 15.6% on average
Investment remains largest tranche of most FX reserves
Asset-screening central banks more likely to operate other tranches
Smaller reserve holders rarely lend securities or conduct stress tests
CVAR remains widely used risk management technique
Reserve managers typically do not employ negative screening
Central banks with short-term import coverage more likely to utilise tool
Be proactive on AI and quantum, Riksbank deputy says
Authorities should collaborate despite geopolitical tensions, says Aino Bunge
Many managers assess reserves with benchmarks and other approaches
Central bank board remains top body granting approval for reserve benchmarking
European central banks shift reserves from US Treasuries to euro assets
US Treasuries still make up largest share of respondents’ reserves globally
Nexus’s new CEO on the future of the cross-border payments platform
Nexus Global Payments CEO Andrew McCormack discusses the multi-lateral instant payments system’s technical build-out, governance and launch strategy
Two in five large reserves holders reduce dollar allocations
Yet central banks’ FX holdings remain broadly denominated in US currency
Nexus will connect at least three Asian countries by 2027 – CEO
Company expects to announce winning bidder for contract to build payments platform by year’s end
Reserve managers widely satisfied with staff strength and resources
Large reserve management teams tend to earn higher salaries
Digital yen is not a given, says BoJ official
Japan’s central bank is focused on studying CBDCs but does not feel pressure to issue one
BoK economists discuss policy responses to ‘super ageing’
In Do Hwang and Boreum Kwak speak about the actions South Korea should take as critically low birth rate limits central bank’s policy space
Hong Kong allows collateral reuse in offshore yuan bond repos
HKMA says changes will increase offshore participation in mainland China bond market
Bank Indonesia makes second surprise rate cut
Consecutive cuts come despite strong second-quarter growth
Six central banks report increase in AML/CFT risks
Nine in 10 institutions indicate having sufficient powers to deal with risks
Central banks see cyber attacks as key financial stability risk
Respondents also reveal other elevated risks, including geopolitics and tariffs
Cyber attacks rise in three-fifths of jurisdictions
Central banks lacking incident response team report highest rate of attacks
Brunei and Singapore ink cross-border collateral agreement
Central banks say move will allow access to wider range of collateral for liquidity operations
People: BSP appoints new deputy governor for supervision
Plus: Kenya lines up Nokia’s country chief for seat on board, and head of US crypto council steps down
Majority of central banks have analysed effects of tariffs
Spike in levies seen as having varying degrees of impact on financial stability
Only 30% of central banks conduct non-bank stress-testing
Exercise tends to be less common in institutions with smaller financial stability teams
Most central banks seek improved regulatory frameworks
Key areas include laws on systemically important banks, liquidity risks, insurance and fintechs