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Reforming China's exchange rate policy

This Working Paper from the University of Venice is aimed at analysing the decision of the Chinese central bank to reform the exchange rate of the national currency and to gauge the effects of this change in regime on the Chinese economy and the world…

PBOC's Wu expects Fed rate cuts in 2007

The US Federal Reserve is expected to cut rates in 2007 and that will reinforce the dollar's downwards bias and the yuan's tendency to rise, a senior Chinese central banker was reported by the Financial News as saying.

BOT sets limit on Thai baht exchange

The Bank of Thailand (BOT) has made a major intervention in the markets to stem the soaring Thai baht, setting a reserve requirement on short-term capital inflows that will come into effect Tuesday 19 December.

BOJ's Fukui watching pace of carry trades

Bank of Japan governor Toshihiko Fukui said Friday 10 November the central bank is carefully watching the market for signs that the buildup or unwinding of carry trades might cause problems for the foreign exchange markets.

Syria says it will peg pound to SDR

Syria plans to remove the pound from its U.S. dollar peg and link it to the International Monetary Fund's special drawing rights (SDR) in the first half of 2007, the central bank governor told Reuters on Monday 30 October.

BOJ denies report is to strengthen yen monitoring

The Bank of Japan has denied a newspaper report published Tuesday 17 October by the Nihon Keizai Shimbun without citing sources that it plans to enhance its monitoring of yen carry trade transactions by hedge funds and other investors.

New York Fed's Foreign Exchange Operations Report

According to the Federal Reserve Bank of New York's Treasury and Federal Reserve Foreign Exchange Operations quarterly report for April-June 2006, published 3 August, the U.S. monetary authorities did not intervene in the foreign exchange markets during…

Comment: More pounds in their pockets

According to the most recent IMF data on reserve holdings, the pound sterling has surpassed the yen as the third most popular reserve currency. A number of factors could see the pound's popularity increase further.

ECB paper on Japanese forex intervention

Based on a GARCH framework and change point detection, the ECB Working Paper "A structural break in the effects of Japanese foreign exchange intervention on yen/dollar exchange rate volatility" tests for a structural break in the effectiveness of…

Comment: Bank of Japan update

The Bank of Japan's monetary policy committee meets this week with an interest rate decision expected on Friday. With any ideas of an imminent rate hike all but ruled out, the emerging consensus is that the shift could come in July.

Tanigaki wants orderly fx moves

Japan's finance minister Sadakazu Tanigaki said on Tuesday 25 April that sudden exchange rate movements seen after the recent Group of Seven meeting were undesirable.

China's forex regime poses fresh puzzle

An article published on Tuesday 13 September says China's new rules for its currency regime could mean the country may be forced to battle the nearly $2 trillion-a-day global forex market to try to control the dollar, euro and yen exchange rates.

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