Central Banking
Lithuania bought 1.6 tonnes of gold as part of euro switch
Purchases representing around 25% of total gold holdings made during switch to euro; Bank of Lithuania investment director tells Central Banking investments are now more diverse
BoE minutes remind markets not to be complacent
Minutes show MPC firmly positioned for coming rate hike; economists suggest central bank may be warning markets they have overestimated willingness for easing
Sánchez encourages ‘realistic’ expectations of macro-prudential tools
Bank of Mexico deputy governor considers effectiveness of macro-prudential tools and the potential unintended consequences at Central Banking training series
Bank of Portugal considers conflict of interest
Working group will consider whether share portfolios held by central bank board members could be considered a conflict of interest; local reports suggest Varela has stake in Portuguese banks
Prasarn highlights ‘untapped opportunities’ between Thailand and China
Bank of Thailand governor Prasarn Trairatvorakul insists China is still an ‘important engine in support of the growth of the Thai export sector’
Glenn Stevens flags capital market risks
RBA governor says the growing role of asset managers and lower market liquidity are cause for concern; combined with cross-border capital flows, this could trigger an abrupt sell-off
Toyota executive slated to join BoJ board
Yukitoshi Funo, former head of company's US operations, nominated to replace Yoshihisa Morimoto at pivotal moment for the Japanese central bank
Public to vote on design of €2 commemorative coin
Eurozone residents invited by European Commission to pick one of five designs for a coin marking the 30th anniversary of the EU flag; partly a tool for raising awareness of economic governance
Fed’s Claessens challenges banking Balkanisation theories
Theories emphasising the collapse in cross-border credit since the financial crisis fail to capture a ‘secular trend’ towards emerging markets, says Fed senior adviser
Economists split on reality of cross-border co-operation
Panelists at an event in London see continued obstacles to countries working together effectively during a crisis, although regional co-operation could be a partial solution
Bank of Mexico lays out new rules for local derivatives
Interest rate swaps will have to be traded on electronic platforms and derivatives exchanges and transacted through clearing houses, according to new rules
Central banks of Colombia and Peru expect bond impact from Fed rate hike
Even though markets are already anticipating a Fed interest rate hike, it will still have an impact on bond markets and asset prices, the governors of the central banks of Colombia and Peru argue
Stronger dollar will pose challenges for South African economy, says Mminele
"Rising interest rates in the US would have an adverse impact on borrowing costs, while a weaker euro would limit external demand for South African exports,” says Sarb deputy governor
Volcker proposes new regulatory structure with Federal Reserve at its heart
The Volcker Alliance sets out proposals for a new regulatory structure in the US that seeks to address the ‘fragmentation, overlaps and glaring gaps’ in the current system
Bank of Mexico paper warns of EM bond runs
Paper stresses vulnerability in face of Fed lift-off, even with low levels of leverage, noting mechanisms essentially unrelated to degree of leverage can determine financial stability
Greece raids local authorities for cash as repayments loom
Local authorities instructed to transfer cash balances to treasury accounts at the Bank of Greece; Constâncio says default would not ‘automatically’ push country out of the eurozone
Sri Lanka’s Mahendran cleared of direct involvement in bond scandal
Governor not directly involved with irregularities in treasury bond auction, but tighter supervision of central bank operations is needed, committee finds
Kuroda calls for deeper understanding of expectations
Bank of Japan governor wants increased awareness of the mechanism through which inflation expectations are formed to help the design of monetary policy
‘Unbanked’ numbers fall 20%, World Bank study finds
First update to the Global Findex database finds 700 million adults worldwide became new account holders since 2011, but two billion remain without access to basic financial services
PBoC steps up support with reserve ratio cuts
People’s Bank of China cuts the ratio for the second time this year, with observers pointing to pressure on the monetary base from foreign exchange outflows as a motivating factor
Mexican deputy tells EMs to assume US rate hike coming ‘sooner rather than later’
Javier Guzmán Calafell advises emerging markets to prepare ‘as fast as possible for a worst-case scenario’ in anticipation of the Federal Reserve tightening policy later this year
Carstens-led IMFC urges policy-makers ‘to attenuate’ spillovers and spillbacks
Fund calls for ‘careful calibration’ of policy normalisation; endorses use of capital controls as a last resort
Proactive regulation could help a billion to access financial services by 2020
RBI’s unique ID decision helps 33 million people gain access to financial services in six months; proactive approach by regulators could help World Bank offer finance to another billion people
Europe/US policy divergence ‘good news’ for monetary system, says top central banker
Spill-overs should not be a factor in monetary policy decisions; precedents for European and US policy to diverge, says top-level European central banker