Bonds
Benoît Cœuré on CBDCs, stablecoins and central bank fintech co-operation
BIS Innovation Hub chief voices concerns about the timing of stablecoin and CBDC roll-outs, fintech risks for supervisors and monetary policy, and details development plans for eight innovation locations
BoE unveils plan to ‘green’ its corporate bond-buying
Hauser says BoE will “tilt” bond purchases and might insist on full climate disclosure by issuers
Book notes: Quantitative easing, by Jonathan Ashworth
Well-documented and fairly comprehensive book for anyone, including central bankers, wanting an overview of how monetary policy has evolved in recent decades
German court dismisses challenge to ECB bond-buying
Constitutional court ends long-running challenge to asset purchase programme
Green bonds remain a challenge for reserve managers
Duration and issuance model curb investing in green market, Finland’s asset management head says
NY Fed updates Treasuries purchasing programme
New York Fed changes maturity ranges and sector weights of bond purchases
Iran’s government orders central bank to bolster stock market
Central bank ordered to sell off $200 million in assets and lift restrictions on investing
BlackRock research pushes back at concerns over bond ETFs
BIS paper had suggested ETF sponsors may have sold illiquid assets to discourage redemptions amid Covid stress
Israeli reserves reach new record high
Foreign currency purchases to offset shekel’s strength boost portfolio to $194 billion
SNB’s Jordan rejects higher profit distribution
Current system takes into account market risk stemming from ever-larger balance sheet
Riksbank maintains stimulus as it revises up growth forecasts
Swedish central bank says a return to negative rates is possible if inflation target is imperilled
Fed must clarify future of QE, IMF says
IMF warns that rising longer-term Treasury yields could have major impact
Green instruments added as collateral for lending facilities – PBoC governor
China’s central bank will launch tools to encourage emission reductions
ECB watchers say divisions on council could hamper decision-making
Analysts say central bank’s strategy of lower purchases could be tested later in 2021
Is the ECB implementing yield curve control?
The eurozone has adopted a hybrid system – lying somewhere between the Fed’s QE and the BoJ’s yield curve control – that targets wider financing conditions
Fed may make Fima permanent – SF president Daly
SF Fed president says policy-makers also considering creation of domestic repurchase facility
Norwegian SWF makes first investment in unlisted green project
GPFG to invest $1.66 billion in Dutch offshore wind farm
A rebuttal of Philip Turner’s criticism of the BIS ‘house view’
Robert Pringle critiques the key findings raised in Philip Turner’s occasional paper, ‘The new monetary policy revolution: advice and dissent’
RBNZ stresses need for clarity on climate disclosures
Taxonomies need to be harmonised and disclosure frameworks reviewed to ensure they are relevant for the public sector
Evolving investment activities with ETFs
BlackRock‘s Crystal Wan, Andrew Mackenzie and Pablo Arteaga examine the exchange-traded funds market from the perspective of central banks seeking the tools to achieving their financial goals
Central bank of the year: The Federal Reserve System
Overwhelming Fed interventions in March 2020 forestalled a damaging global financial crisis, as policy overhaul prompts introspection in Europe and Japan
Lagarde highlights uncertain outlook due to vaccination
ECB ready to adjust policy tools to ensure inflation increases towards target
Riksbank report explains basis for green asset purchases
Report sets out legal and operational basis for “norm-based negative screening”
ECB to increase asset purchases
Lagarde says PEPP decision was unanimous as ECB staff increase inflation and growth forecast