International
Trade credit can expose firms to FX risk – BIS paper
Currency borrowers partially insulate their partners from shocks, but still pass them along supply chains
Reserve Benchmarks 2024 – model banks analysis
New breakdowns reveal differences in central bank reserves management by size and economic group
Climate stress tests are cold comfort for banks
Flaws in regulators’ methodology for gauging financial impact of climate change undermine transition efforts, argues modelling expert
Swift to conduct live digital asset transaction trials from 2025
Network’s head of innovation says functionality will meet increasing demand for digital transactions
Basel III endgame adoption more than doubles
Annual monitoring exercise shows progress, but US and some emerging markets lag behind
Risk management ‘key’ to monetary policy – IMF’s Kammer
Fund’s Europe chief urges central banks to rely less on forecasts when inflation is high
Machine learning can improve inflation forecasts – IMF paper
Model for Japan is “easily interpretable” and overcomes some drawbacks of standard models
Nuclear industry says World Bank should resume financing
Industry bodies say Institution should allow nuclear projects to fall under “green bond” taxonomy
One in 10 central banks uses FX swaps to defend currency
Interventions were relatively common in past year, suggesting greater activity in spot market
Crypto assets not fit for reserve purposes – World Bank study
Economists say central banks are unlikely to move into non-CBDC digital currencies “any time soon”
People: IMF appoints general counsel
Bank of Russia names new monetary policy head; Rob Brand becomes DNB’s chief investment officer
BIS warns of growing offshore reinsurance risk
Deals by private equity-backed life firms could mask risk in $25 trillion industry, report says
Book notes: The monetarists: the making of the Chicago monetary tradition, 1927-1960, by George S Tavlas
A fascinating, scholarly and sympathetic account of the Chicago monetary tradition
NBER paper reviews ‘state of the art’ climate modelling
Recent breakthroughs have increased accuracy and computational efficiency of IAMs
Alpana Killawala on communications under six governors at the RBI
The former RBI comms chief speaks about the importance of strategic communications, courting the media, open mouth operations and altering a governor’s ‘rock star’ image
BIS says carry trade unwind is part of broader pattern
Multi-strategy hedge funds drive spillovers across asset classes, analysis finds
IMF staff propose updated ‘new arrangements to borrow’
Fund’s second line of defence is already being scaled back under quota reforms
Countries with high import coverage invest more in non-SDR debt
Breakdown of asset allocations shows Europe holds nearly half of world’s ESG-focused bonds
Financial Stability Benchmarks 2024 – model banks analysis
Further breakdowns of the data highlight patterns in governance, regulatory reform and cyber risk
Interpreting the PBoC’s slew of policy reforms
How are new stimulus measures, bond market tactics, deflationary pressures and monetary policy framework changes affecting central banking in China?
People: Lula nominates ally Galípolo as Brazilian governor
BIS appoints Franks Smets to senior economics role
All eyes on the Fed
The US central bank faces a challenging path to fulfil its mandated goals
Global house prices have ‘almost stabilised’ – BIS
Prices still declining in aggregate, a trend driven mainly by China and the eurozone
Triggers of August market ‘flare-up’ still in place, BIS warns
Leveraged positions remain at risk of sudden unwinding, as margin calls play amplifying role