US dollar
Fed official reports on success of dollar swap lines
Steven Kamin, director of the Division of International Finance at the Fed, tells Senate committee currency swap lines have helped ease dollar funding market; stresses agreements are risk-free
Zambia raises capital ratio for banks and rebases currency
Bank of Zambia reveals government decision to hike capital requirements for banks operating in the country; three zeros also to be slashed from value of banknotes
European banks still exposed to US dollar funding risks, ESRB warns
European Systemic Risk Board issues recommendations to prevent build up in US dollar funding and liquidity risk; calls for single entity to be responsible for national macro-prudential policy
CB.com panel discusses changes in reserve management functions
CentralBanking.com poses the question: What do central banks want from reserves and reserve managers? Panellists discuss how the financial crisis has altered the role of reserve managers
Carney explains Canada-US price gap narrowing
Bank of Canada governor Mark Carney discusses drivers of price differentials between the Canadian dollar and US dollar
SNB returns to profit with $19 billion gain
Swiss National Bank reports large profit for first three quarters of 2011 due to valuation gains in gold holdings and decline in foreign currency losses
Lira strengthens as Turkey cuts reserve ratio
Central Bank of Turkey continues battle with falling lira and reduces its reserve requirement ratio by 210 basis points
NY Fed paper examines threat to international role of dollar
New York Federal Reserve study says decline in the international role of the dollar should not be a concern if US maintains strong economic growth
Central banks shy away from euro reserves
New data from the IMF’s currency reserves database suggests reserves accumulation has slowed during 2011 and the appetite to hold euro reserves has also waned, particularly in emerging markets
Euro climbs as major central banks boost dollar liquidity
Bank of England, Bank of Japan, European Central Bank and Swiss National Bank to offer three-month loans to market; euro moves higher against the dollar but nearly breaks Swiss franc floor
Japan moves to halt yen gains with new facility
Japan’s finance minister Yoshihiko Noda reveals plans to set up $100 billion facility that will encourage companies to exchange yen for foreign currency assets
Options traders braced for further SNB intervention
Demand has switched from downside EUR/CHF options to upside options in anticipation of further Swiss franc weakening measures from SNB, say senior options traders
Towards a global monetary policy
US monetary policy must change as the dollar’s dominance wanes, writes Allan H. Meltzer
European markets plummet as bank taps ECB dollar swap line
European Central Bank extends $500 million loan to unknown bank as equity markets move lower on concerns over health of banking sector
Soft-dollar pegs not optimal in Sub-Saharan Africa: IMF paper
Fund study says soft peg to dollar increases macroeconomic instability in Sub-Sahara African countries
Exchange rates are influenced by macroeconomic performance: Buba paper
Bundesbank study finds link between macroeconomic fundamentals and exchange rate movements through expectation of monetary policy
Three strikes and you’re out
Standard and Poor’s downgrade of US debt is just one of a handful of errors made by credit rating agencies, writes Robert Aliber
Dollar falls on S&P downgrade
Standard and Poor’s makes unprecedented move by becoming the first ratings agency to downgrade the US credit rating; gold hits record high as dollar falls
SNB devaluation attempt flounders as Swiss franc rebounds
Swiss franc claws back earlier losses after central bank intervenes to curb rise in currency
Swiss franc declines as SNB eases policy rate
Swiss National Bank moves to stem strengthening of the Swiss franc by easing monetary policy; franc falls 1.97% against the euro following decision
Towards a global monetary policy
US monetary policy must change as the dollar’s dominance wanes, writes Allan H. Meltzer.
Fed extends temporary dollar swap lines again
Canada, UK, Switzerland and ECB prolong arrangements; Japan to decide soon
Kenya addresses currency concerns
Central Bank of Kenya to expand number of commercial banks with access to foreign currency window in bid to end speculative trading