Exchange rate
Price competitiveness strong in the US but weak in China, Bundesbank paper finds
Proposes ‘simple productivity approach-based' method for calculating a ‘consistent set of multilateral indicators' of price competitiveness
Chinese banks freed to set own RMB-dollar exchange rate
Chinese authorities hand banks freedom to set their own dollar exchange rates; central bank also widens renminbi trading band
Hungarian economists take on ‘delayed overshoot' puzzle
Central Bank of Hungary economists examine the effect of carry trade activity on exchange rate dynamics, finding it does not explain delayed overshoot
Exchange rate losing significance in Asian monetary policy, BIS paper argues
Bank for International Settlements working paper argues sterilised intervention in currency markets is becoming less effective as Asia's economies trade more freely with each other
Norges Bank poised to complete shift from FX buyer to seller before year's end
The Norwegian central bank sends strong signal it will make no foreign exchange purchases this year; analysts predict bank will make ‘symbolic shift' to net-seller in Q4
Central Bank of Kenya backs up talk with currency intervention
Senior trader at I&M Bank explains how forex interventions have kept the exchange rate on an even keel; central bank issues statement to reinforce control of situation
Central American central bank losses smallest in 25 years
However, capital positions remain weak and would even be negative if claims on governments were valued according to cashflow, IMF study finds
Korean research analyses transmission of exchange rate movements to domestic prices
Korean working paper finds imported inputs play ‘major role’ in transmitting exchange rate fluctuations to the domestic price level
Exchange rate depreciation is of limited benefit to small, open economies, says Barbados governor
Central Bank of Barbados's DeLisle Worrell says small, open economies face forex constraint that frames economic policies and cannot be alleviated by fall in real exchange rate
Offshore renminbi has increasing impact on Asian exchange rates
How long the independent impact will last will likely depend on China's progress in liberalising its capital account, according to working paper from the Bank for International Settlements
Chilean peso's precipitious fall is 'desirable', says Vergara
Central Bank of Chile governor Rodrigo Vergara says floating exchange rate regime has absorbed terms of trade shock and tightening of international financial conditions
Forex interventions can lead to banking credit boom, paper finds
BIS paper shows that central bank intervention in forex markets can end up fuelling an expansion in credit to the private sector in emerging markets
PBoC doubles reminbi trading band
The People's Bank of China announced this weekend it will double the renminbi's trading band to let it fluctuate 2% either side of the bank's daily reference rate
Central Bank of Chile cuts rate again as currency remains at five-year low
Bank lowers benchmark rate by 25 basis points to 4.25% and hints at further cuts in coming months, but analysts warn currency weakness and drop in copper exports should not be ignored
RBA assistant governor says weaker Aussie dollar 'not surprising'
Transition of Australia's mining boom from 'investment to production phase' helps explain the currency's depreciation, says assistant governor Christopher Kent
Kazakhs let currency fall 19%
National Bank of Kazakhstan points to the Fed taper and ‘uncertainty’ around the exchange rate of the Russian ruble as the main motivations for devaluing the tenge
Bank of Ghana hikes rates and tightens forex controls in bid to defend currency
Central bank raises interest rates by 200bp to 18% at emergency meeting; follows yesterday's decree that all domestic transactions must be denominated in local cedi
Aid ‘surges' benefit countries where currency or inflation is allowed to rise
If large inflows of aid are ‘sterilised' in an attempt to curb inflation or maintain a set exchange rate, the economy will not feel the benefit of aid, a new IMF paper finds
RBA changes tune on cash and exchange rates
Reserve Bank of Australia hints at a ‘period of stability’ in interest rates and welcomes the weaker Australian dollar
Solomon Islands wins IMF support for ‘contractionary’ monetary policy
Central Bank of Solomon Islands maintains tight monetary policy in face of excess liquidity; IMF welcomes stance but tells authorities to implement a wider exchange rate band
Real exchange rates determined by 'cointegrated' factors, Bofit paper finds
Evidence suggests sectoral total factor productivity differentials, real interest rate differentials and real gold prices explain movements in bilateral US real exchange rates between 1970-2006
Fiscal policy can counteract Dutch disease, say Peru economists
If the gains from public investment are shared throughout an economy, then such government spending can counteract the harmful effects of Dutch disease
Australia PM adds to RBA intervention momentum
Tony Abbott says central bank has sufficient reserves to 'intervene prudently and appropriately' in forex markets; Glenn Stevens 'suspects' the market will spare the RBA the need to act
RBA’s Stevens laments ‘uncomfortably high’ currency
Reserve Bank of Australia governor Glenn Stevens says the Australian dollar is still too strong, despite depreciation against the US dollar