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Central Banking

ECB's TARGET2 Progress Report

The ECB published a progress report on TARGET2 on 8 February. The report considers three main issues - service, pricing and migration to TARGET2. These issues were decided upon by the Governing Council on 16 December 2004.

Iraq to earn income on reserves via NY Fed account

The central bank of Iraq is to be allowed to open a deposit with the Federal Reserve Bank of New York which will earn it millions of dollars in vital interest income, US Treasury Under Secretary John Taylor said on Tuesday 8 February.

ADB chief urges flexible exchange rates for China

Speaking to reporters on Tuesday 7 February, the head of the Asian Development Bank urged China to adopt a more flexible currency exchange system, saying that removing the yuan's peg to the US dollar would be good for both Beijing and its neighbours.

SNB's Blattner on the new banknotes project

In a speech on Switzerland's new banknotes project given on 2 February, Niklaus Blattner of the Swiss National Bank said this step has become necessary because of the development of new technologies and the typically high demands on the design quality of…

Fed's Greenspan on Adam Smith

In a speech titled 'Adam Smith' given on 6 February Alan Greenspan of the Federal Reserve said that 18th-century philosopher Adam Smith was "a towering contributor to the development of the modern world."

RBA Statement on Monetary Policy, February 2005

The Reserve Bank of Australia published its February 2005 Statement on Monetary Policy on 7 February. After a strong year in 2004 the world economy retains momentum, with growth continuing to be led by the United States and China, the report says.

IMF paper on currency crises

This IMF Working Paper tests the implications of a number of theoretical models that attempt to highlight the dynamics behind currency crises. The empirical findings provide support for the view that a deterioration in economic fundamentals and the…

Interview with Bank of Canada's Tiff Macklem

In an interview published this week, Bank of Canada Deputy Governor Tiff Macklem said Canada's economy may take two or three years to adjust to a currency that rose more than 20 per cent since early 2003 and "there is probably some more adjustment to go".

Malawi names new central bank governor

President Bingu wa Mutharika of Malawi has decided against renewing the contract of central bank governor Elias Ngalande, which expires at the end of this month, a government official said on Tuesday 1 February. Ngalande will be succeed by Victor Mbewe.

Capitalising central banks: A net worth approach

This IMF Working Paper provides a simple, quantitative, net worth-based, approach to assessing the need for central bank capital. It derives a concept of "core capital" as the minimum capital needed by a central bank to ensure the credibility of its…

PBOC's Xiaochuan on legal & financial system

In the speech 'Improve legal system and financial ecology' given on 2 December (published 28 Jan) Zhou Xiaochuan of the People's Bank of China told the "Forum of 50 Chinese Economists" that from the perspective of the central bank, he wishes them to work…

SARB to present upgraded banknotes to parliament

The South African Reserve Bank said on Friday 4 February that the upgraded banknotes, which went into circulation at the beginning of February, will be presented to members of Parliament in Cape Town on 7 February, ahead of the opening of Parliament.

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