Central Banking
Seychelles’ rusty rupees to be replaced
Prolonged exposure to salt water has led to rust and erosion of previous series of coins, released in 2016; UK’s Royal Mint to produce new composite coins
Fed unveils 2018 stress tests for big banks
The severely adverse scenario would take the unemployment rate to 10% from 4.1%
CCP stress tests have found capital shortfalls – Esma
Small increases to stress-test scenarios would have left ICE Clear Europe “in material breach”
Riksbank renews its website to address user demands
New design preserves original structure, but makes the most demanded content more accessible
Cœuré: ‘three lines of defence’ needed to protect ECB
The ECB executive board member says without reforms the ECB may end up having to “test the limits of its mandate”
Thailand eases foreign exchange rules to encourage outflows
Central bank seeks to cool down the baht, one of the fastest-appreciating Asian currencies
Banks not necessarily more opaque than other firms – BIS paper
Study compares stock returns of those with insider knowledge against the wider market
People: FCA creates Brexit role; new Uzbek deputy
UK FCA creates new senior role to oversee Brexit work; Adham Islamov joins Central Bank of Uzbekistan; Swedish and French regulators join Esma board
BoE’s Brazier flags concerns about ‘stretched’ credit markets
BoE is simulating ‘liquidity mismatch’ in bond markets to ensure financial stability, says executive director; central bank has a ‘duty’ to adapt regulation
EBA to test banks’ resilience in adverse Brexit scenario
Stress tests offer glimpse of how a crisis related to UK’s withdrawal from the bloc might emerge
CNB raises Czech rates to return inflation to target
A stronger currency is supporting the central bank in its efforts to control price pressures
Markets should not panic over reserve levels – Bajan governor
Haynes says level of reserves has reached new all-time low at 6.6 weeks of imports, but central bank is not considering a devaluation
Potential ATM closures will be PSR’s first ‘major test’ – Morgan
Treasury select committee chair says Payment System Regulator should not hesitate to intervene should closures threaten financial stability; market calls for independent review
Rates on hold after Yellen’s final FOMC meeting
New committee finds unanimity on rate hold, as Janet Yellen prepares to step down
Misinterpreting commodity price swings can be damaging – BIS paper
Whether movements are down to supply shocks or changes in global demand matters for policy, and mistakes can be procyclical when central banks act together
Renminbi struggles to gain prominence on global stage – Swift
Chinese currency usage only accounted for 1.61% of domestic and cross-border payments in December 2017; digitisation may be the key to currency’s success
Taiwan deputy nominated as next governor
Yang Chin-long seen as likely to follow the monetary policy stance of his predecessor, Perng Fai-nan
Ireland nominates Lane for ECB vice-presidency
Irish governor has a track record as academic economist and senior ESRB figure
Carney rejects accusations of ‘cognitive bias’ at BoE
Parliamentary committee members say BoE relied on inaccurate forecasts before Brexit, affecting policy decisions
Sarb comes to defence of Capitec after ‘loan shark’ claim
US research firm takes aim at South African lender, accusing the bank of “reckless lending practices”, but central bank maintains it is “well capitalised”
Banks expand some lending following crises, research shows
While portfolio lending is restricted, banks expand some other forms of lending
People: Vlieghe gets second term at BoE; ECB appoints directors
Group of central banks promoting the goals of the Paris agreement on climate change appoints first chairman; and more
State Bank of Vietnam seeks to rein in credit growth
Target of 17% credit growth this year to contain risks
Inflation falls in the euro area despite stronger growth
Annual price increases expected to fall to 1.3% in January, Eurostat says