Liquidity
IMF renews Mexico’s Flexible Credit Line
Two-year programme reduces funds from about $61 billion to $50 billion
PBoC hints at tilt to easier policy as growth slows
Third-quarter monetary policy report tweaked phrases, downplaying opposition to easy policy
CPMI proposes ‘global settlement window’
BIS committee says window could work as focal point for aligning payment systems worldwide
ESG for central banking focus report 2021
The report flags challenges for central banks themselves – as guardians of the financial system, they have a duty to lead by example. But the lack of liquidity within ESG-compliant assets is proving a problem for many
PBoC launches carbon-reduction monetary policy facility
Facility will offer low-cost loans for private firms investing in green projects
Fed’s gradual tightening could be boon for some, says Armenian governor
Central Asia faces inflation caused by enormous liquidity injected by advanced economies, says Galstyan
Time to stop handing out the pills: the great QE detox
We are facing a serious inflation threat that will test the resolve of central bankers, writes Jagjit Chadha
North Korea issues coupons instead of cash
Experts say closing of Chinese border due to Covid-19 may have halted banknote production
Interoperability of stablecoins
Central bank reserves could be a better option for backing stablecoins than Treasuries, say Manmohan Singh, Caitlin Long and Charles Kahn
Central banks sign up to Fed’s Fima facility
Reported usage is marginal, but backstop is highly valued by reserve managers
Europe leads on gold lending and swaps
Just over 20% of central banks engage in these operations
Podcast: Paul Fisher on the future of balance sheet policy
Central banks must think about the composition of their balance sheets, the former BoE official says
BIS launches third green bond fund in Asia
Asian Development Bank and BIS aim to foster issuance of safe green assets
One in ten central banks opened new liquidity swap lines
Benchmarking participants expanded lines in dollars, euro and renminbi
BoE launches ‘exploratory’ CCP stress test
Central bank will test credit and liquidity exposures, and will also conduct “reverse stress tests”
Most central banks invest in derivatives
External managers facilitate wider use of these instruments
Emerging nations turned to FX interventions during pandemic
Central banks in emerging nations twice as likely to implement FX interventions than peers in advanced economies
FSB to press ahead with money market fund reforms
Asset managers had argued turbulence in MMFs during Covid was symptom of stress not cause
Evergrande tests China’s commitment to deleveraging
Chinese officials are having to choose between near-term growth and long-term economic health
BoE report sheds light on Covid market operations
Surge in scale and frequency of operations amid switch to work from home created “issues”
Larry Summers on stagflation risks, lessons from Delphi and never-ending ‘punch’
Ex-US Treasury head speaks about fiscal ‘overexpansion’, Fed/Treasury debt discord and ‘unknown unknowns’
Many central banks are sole macro-pru agency
Two-thirds of respondents say central bank alone can impose macro-pru restrictions
UK looks to boost long-term investing
Working group says action needed to encourage illiquid investing without risking instability