Emerging markets
Bank of Zambia tries to talk down forex market ‘panic'
Bank of Zambia aims to arrest ‘panic' in foreign exchange market amid reversal of portfolio flows; hiked reserve ratio requirement on Monday in attempt to strengthen currency
Fed not to blame for recent emerging market sell-off, says BIS
Recent rush of capital out of emerging markets was due to country-specific factors, not tapering by the Fed; Borio reiterates call for better policies, lamenting a ‘disappointing element of déjà vu’
FOMC members discuss international spillovers of Fed monetary policy
Charles Plosser and Richard Fisher sound off on accommodating policies' impact on other countries, but make no promises of international considerations on FOMC
Banxico deputy wants 'prudent' deepening of credit markets
Bank penetration in Mexico remains low compared with other emerging markets, but 'prudence is sine qua non' for expanding financial inclusion, says Manuel Sánchez
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
Reserve requirements may speed up development of capital markets, Peruvian paper finds
Central bank reserve requirements dampen credit cycles in periods of capital inflows and reduce their expansionary effects on aggregate demand, according to central bank working paper
'Coupling' of domestic bonds to foreign markets increases in turbulent times
Chilean corporate bond returns are affected by long-term government bond returns and by foreign macroeconomic shocks in the eurozone and the US
Global lending conditions more connected than ever, says BIS's Turner
Big emerging market corporations are borrowing abroad, while global capital has been flowing into EMs – meaning lending conditions are more strongly connected than before
Bank of Ghana brings forward rate decision as falling currency feeds inflation
The central bank's monetary policy committee will meet tomorrow instead of February 19 following further weakening of the cedi; analysts expect rate increase of at least 100 basis points
Unanimous Fed decision to taper 'sets precedent'
FOMC scales back monthly purchases by another $10 billion, makes no mention of EM turmoil; unanimous decision seen as making dissent less likely in coming meetings
Turkey and South Africa shock markets with interest rate hikes
South Africa and Turkey join India in raising rates in the face of persistent inflationary pressures and sharp currency devaluations, ahead of the FOMC decision later today
RBI director discusses management of 2013 capital outflows
High and unstable capital flows can lead to macro and financial stability concerns. But managing capital flows to minimise such concerns has costs too, says Deepak Mohanty
US Congress fails to sign off on IMF reforms
Sweeping modernisation package put together by G-20 in 2010 stopped in its tracks as House of Representatives declines to double quota increase and thus ratify changes to fund's governing structure
Turkish banks 'sound' despite 'significant increase' in non-deposit funding, central bank says
Lenders' asset quality and capital adequacy high enough to withstand shocks according to new financial stability report; liquid FX assets cover 'half' of sector's short-term external debt
Fed taper met with calm, but questions remain
Markets take ‘expected' tapering in stride, but analysts warn of persistent emerging market vulnerabilities and changing FOMC dynamics in 2014
OTC derivatives turnover driven by 'non-dealer' contracts, says BIS
Article in latest BIS quarterly review notes share of inter-dealer trades shrunk to 35% in 2013; trading remains concentrated in major financial centres despite 'rapid' growth in EM currencies
Emerging market fundamentals mean investment still makes sense, says Sarb deputy
South African Reserve Bank deputy governor Daniel Mminele tells investor conference that recent volatility is testimony EMs increased responsiveness to changes in underlying fundamentals
Caruana flags evidence of ‘manifold’ QE spillovers
BIS general manager presents evidence of varied spillovers from advanced economies' monetary policy; says policy-makers should do more to take them into account
Emerging markets will 'suffer' as QE ends, say panellists
Guillermo Calvo, Vittorio Corbo and Maurice Obstfeld say emerging markets face a bumpy landing when Fed winds down QE, and some are better prepared than others
Belgian paper warns central bank policies could worsen financial shocks
Working paper studies optimal monetary policy configurations for price and financial stability in Eastern Europe; finds central banks may worsen credit shocks by taking action against them
Developing countries focused on financial inclusion are reshaping central banking
Efforts in developing and emerging economies to promote financial inclusion for the world’s 2.5 billion unbanked population offer lessons to their developed world peers
RBI tries to persuade foreign banks to put down roots
Revamped framework unveiled by India's central bank yesterday will make it easier for foreign lenders currently operating through branches to set up wholly owned subsidiaries in the country
Fed’s Powell downplays QE impact on emerging markets
Governor admits Fed policy has played a part in capital flows to and from emerging markets, but argues other factors are more important; follows fresh complaints from Asian economies
Central Bank of Chile cuts interest rates for first time in 18 months
Central bank cuts rate 25bp to 4.75%, amid slowing demand growth and below-target inflation; analyst says inflows, not outflows, biggest concern despite current account deficit