Exchange rate
RBI cuts overseas investment limit by three quarters
Reserve Bank of India unveils latest measure to halt the fall in the rupee's value - only days after announcing ‘open-ended' sales of short-term debt; issues clarifications on gold import restrictions
Central Bank of Peru grapples with Fed tapering while rooting for a US recovery
Peru is more insulated against shocks to its financial system than in the past but managing uncertainty has never been tougher, central bank governor Julio Velarde tells Central Banking
Philadelphia paper models export dynamics after large devaluations
Working paper says that exports responds ‘sluggishly’ to a large currency depreciation; creates a model to capture these dynamics and explore their macroeconomic impacts
BoJ and BoK vote to keep interest rates unchanged
Bank of Japan keeps rates at zero and will continue asset purchases for 'as long as necessary' to hit 2% inflation target; regional impact of possible US tapering remains uncertain
Worrell rules out devaluing Barbadian dollar
Central Bank of Barbados concerned by foreign exchange imbalance emerging in the economy; calls on government to reduce fiscal deficit in bid to avoid devaluation of currency
Low correlation between relative consumption and price not due to market inefficiency
Central Bank of Luxembourg paper attempts to explain why the correlation between real exchange rates and relative consumption is either low or negative
Kenyan central bank defends depreciating shilling
The Kenyan shilling has dropped almost 5% in value against the dollar since May; central bank insists this is a necessary rebalancing and does not pose any damaging inflationary pressures – yet
Currency appreciation not just bad news for exporters
The use of cheaper imported intermediates compensates for 0.2 percentage points of a 1% currency appreciation followed by proportionate drop in export sales, Czech National Bank study shows
IMF backs Czech forex intervention
Article IV says a ‘persistent and large undershooting’ of the Czech National Bank’s inflation target would warrant a weaker koruna; governor Miroslav Singer says board is coming round to the idea
Cape Verde aims to keep euro peg credible
Maintaining the Cape Verdean escudo’s peg to the euro is the central bank’s ‘main concern’; setting policy to stabilise its international reserves and – in turn – the peg
RBI 'forfeiting monetary policy discretion' in bid to keep rupee in check
Governor Duvvuri Subbarao says India is caught in an 'impossible' trilemma, forcing the bank to maintain rates in spite of sluggish growth and ebbing inflation
Reserve Bank of India announces measures to bolster weakening rupee
In tightening move, RBI raises its Marginal Standing Facility rate to 10.25% with 'immediate effect'; currency value rebound is expected to be short-lived
No ‘significant' correlation between declining bank credit and growth, BIS paper finds
Real exchange rates and public debt, however, show a statistically significantly correlation with recovery
SNB reaffirms commitment to exchange rate limit
Thomas Jordan says Swiss economy continues to face 'major challenges'; Fritz Zurbrügg outlines efforts to control risks arising from the central bank's $475 billion foreign currency investments
Bank of Israel’s outgoing chief, Stanley Fischer, on the challenges of central banking
Stanley Fischer believes his work as governor of the Bank of Israel is done. He tells Chris Jeffery about the reform process in Israel as well as the challenges facing the world economy and the IMF
Price stability ‘pivotal’ in shaping exchange rate pressures
Bank of Finland discussion paper analyses pressure on exchange rates during financial crisis; says countries that experienced high inflation beforehand were hardest hit
RBNZ could ‘scale up’ forex intervention
Reserve Bank of New Zealand governor Graeme Wheeler signals willingness to sell more NZ dollars to combat currency appreciation; house price increases put central bank in policy ‘bind’
Colombian paper trumpets transparent forex intervention
Research says ‘pre-announced and transparent’ interventions had a greater impact on the Colombian exchange rate than more discretionary or ‘dirty’ purchases
Norges Bank paper seeks to solve ‘exchange rate puzzles’
Working paper looks to research into ‘market microstructure’ to explain rapid evolution of foreign exchange markets
ECB paper explores current account reversals
Study finds that some external adjustments are more likely to trigger a current account reversal than others; this is determined by the country’s exchange rate regime
RBNZ intervenes in forex and hits bank capital
Central bank boosts mortgage lending capital requirements and sells New Zealand dollars to ‘take the tops off rallies’; economy faces low inflation but strong dollar and overheating housing market
Bank of Thailand prepares to counter rising baht
Monetary Policy Committee agrees ‘framework for exchange rate management’, but does not yield to government demands for a rate cut
Central Bank of the Philippines continues forex liberalisation drive
Relaxed rules for onshore foreign exchange transactions aim to cope with rising demand and encourage public to move informal transactions into the banking system
BoJ's Miyao sees weaker yen as key to ending deflation
Leading proponent of monetary easing highlights a change in the dollar-yen exchange rate as key to hitting Bank of Japan's 2% inflation target