Regulation
Few central banks use big data tools to forecast currency demand
Forecasting is very common, while few expect big changes in currency needs for 2023
Banknote contagion measures reduced in 2022
Participating institutions say coronavirus has shaped currency demand
OCC to create fintech office
US regulator will appoint chief financial technology officer to lead regulation of sector
Paper-based banknotes still outnumber polymer substrates
Most banks do not plan adoption of new substrates
Cash usage drops further to an average of 42.5% across jurisdictions
Just one African institution and a European jurisdiction experience growth in cash payments
Fewer central banks report climate strategy
Incineration still most common practice among institutions recycling banknotes
Most central banks plan no new banknotes in near future
Fewer than a quarter of banks plan new notes in next five years
Independence white paper outlines possible Scottish central bank
Proposals map out “the process of establishing a Scottish pound”
People: Kuwait appoints first woman deputy governor
New deputies in Sri Lanka, Ireland and Zimbabwe; Turkish MPC member dies; and more
Hsu says US needs proper regulation of bank-fintech alliances
Policy-makers focus too much on crypto, says comptroller
World has ‘very little space’ for policy, says Georgieva
Carney, Georgieva, Donohoe and El-Erian agree room is limited and mistakes are punished harshly
BoE sticks to bond-buying deadline amid strains on UK non-banks
Bailey restates cut-off date for asset purchases despite spike in margin calls and redemptions
ECB paper looks at Covid-19 emergency supervisory measures
Relaxation of CET1 requirements positively affected lending, but change to Pillar 2 guidance did not
Share of reserve managers investing in green and social bonds declines
Share of portfolios allocated to these assets grow modestly
Russia’s Mir forced into retreat
Banks and payment systems across Asia banish Russian cards after US warnings
Average central bank equity allocations at 11.9%
Despite higher volatility, high income central banks increase their investments in equities
Asset diversification and staff training main goals for external contracts
All non-high income central banks aim to offer training to staff, high income jurisdictions focused on diversification and market intelligence
Most central banks expect sanctions on Russia to have a long-term effect
Trend is weaker in Europe than in the Americas, Asia-Pacific and Africa
Over 90% of central banks trim duration as protection against inflation
Fewer institutions increased US Treasuries (18.75%), reduced exposure to unconventional assets (6.25%)
Central banks’ coverage ratio drops by 23%
Reserves buffers to cover monthly imports decline to 6.9 months
Rate rises reveal defi weaknesses – Powell
Regulating algorithms highlighted as key crypto challenge at Banque de France conference
Staff salaries at reserves departments increased 17.6% from last year
Total staff numbers declined by 10% to 27
More central banks expand existing liquidity swap lines
More than 23% of participating countries gained access to IMF facilities over past year
Book notes: 21st century monetary policy, by Ben S Bernanke
Bernanke’s great book offers important insights for today’s policy-makers, writes Stephen Poloz