Exchange rate
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
RBA 'open-minded’ to currency intervention
Reserve Bank of Australia governor Glenn Stevens says the central bank would consider intervening in the exchange rate, and insists it ‘remains part of the toolkit’
Bank of Canada deputy discusses price divergence with US
John Murray says prices in Canada have been lower than those in the US for much of the past 30 years; notes the exchange rate 'seems to be driving prices in the two countries away from each other'
ECB cut prompts record FX intervention in Serbia
Central bank expresses ‘firm and prudent’ resolve to lean against capital flows resulting from ECB rate cut, but eschews a fixed exchange rate
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
Krugman says ‘Greek-style’ crisis in US or UK would have ‘expansionary effect’
Economist extends Paul de Grauwe's point that countries borrowing in own currency are immune to self-fulfilling liquidity crises; says loss of investor confidence would raise output in large economies
Czech central bank starts targeting exchange rate
Czech National Bank finally says it will start intervening in the forex market, a year after it cut rates to the zero lower bound; Czech koruna almost hits target level straight after announcement
Bank of Russia slashes forex intervention target
Halved intervention target brings rouble closer to free-float; IMF tells central bank to maintain reform momentum and resist calls to loosen policy
China should be in ‘no hurry’ to relax capital controls, says ADB paper
Working paper makes recommendations for Chinese fiscal and monetary policy, including maintaining control over exchange rates and taking steps to curb the growth of shadow banking
Banque de France paper offers alternative to China's exchange rate regime
Banque de France working paper outlines alternative model to China's exchange rate policy involving capital mobility and no central bank intervention
IMF tells Turkey to fix flawed monetary policy framework
Article IV mission calls on central bank to ‘re-consider’ its policy framework, accusing policy-makers of targeting too many objectives and consequently failing to control inflation
Global banks reduce frictions in international capital flows, say NY Fed staff
NY Fed staff report findings are consistent with research on reduced incidence of crises in local markets where banks have branches or subsidiaries; effects appear to be heterogeneous
RBA quiet on further easing as it holds rates
Reserve Bank of Australia holds its key policy rate at 2.5% and omits earlier guidance on the prospect of an additional rate cut from accompanying statement