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Central Banking

Bernanke discusses US deficit

Ben Bernanke, the chairman of the Federal Reserve, explained why he thought the US current account deficit had grown so rapidly before saying that the deficit was likely to decrease in the years ahead.

Rate signals and CB transparency

Interest rates should be added to the list of signals that central banks can reveal in order to be transparent, according to a paper published by the Centre for Economic Policy Research.

Deadlock in the inter-bank markets

The continuing difficulties in the global inter-bank markets, which started on 9 August, have already given rise to a mountain of speculation about the possible causes and what central banks should do about the problem.

Venezuela set to publicise new currency

The Venezuelan Central Bank will launch a nationwide campaign to familiarise consumers with its new notes and coins, which will come into circulation at the start of next year.

Bahrain's payment system a success

The Central Bank of Bahrain said that its real time gross settlement (RTGS) payment system introduced on 9 August, has "dramatically speeded up the flow of money", leading to a more efficient financial sector.

A case for hedge fund regulation

The unique nature of hedge funds could lead to market failures that counterparty credit risk management (CCRM) practices cannot easily assess, according to an article published by the New York Federal Reserve.

Bank of Russia to widen eligible collateral

The Central Bank of Russia (CBR) intends to expand the list of paper involved in the refinancing mechanism with 'securities of non-rated borrowers', according to the Russian newspaper Kommersant. "This should make life easier for second- and third-tier…

Riksbank to publish repo path, hikes rates

The executive board of the Riksbank will publish forecasts for the future repo rate path and a number of other important variables in connection with each monetary policy meeting. The central bank decided on Thursday to raise the repo rate by 25 basis…

New governor for Iran

Tahmasb Mazaheri, a former Iranian finance minister, was appointed yesterday as head of the country's central bank.

Poland looking to join ERM2, says Skrzypek

Poland will be able to cut its general government deficit to below 3% of GDP by 2009, as pledged by the government, which would allow it to join the exchange rate mechanism ERM2 the same year, deems National Bank of Poland (NBP) governor Slawomir…

Gulf may escape contagion

Rasheed Al Maraj, the governor of the Central Bank of Bahrain, said Gulf markets are unlikely to see a major fallout from the slump in USsubprime mortgages as most local companies have their core businesses in the area.

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