Opinion/Central Banks
Fed may be on road to neutral monetary policy
The Federal Open Market Committee will make the 13th consecutive rate increase at its next meeting on 13 December, as it continues on its way to the so-called neutral level, according to this article published on Wednesday 2 November.
Comment: Japan sees return to normal
Japan's monetary policymakers yesterday delivered another instalment of what is becoming an increasingly confident message: after seven years of deflation, they expect prices to start rising again early next year.
Comment: FX interventions
Most central banks have moved away from actual foreign exchange market interventions and now use communication, or verbal intervention, as a policy instrument to influence exchange rates when deemed necessary and desirable.
Comment: What drives the price of debt?
How, in a world where the amount of debt is rising rapidly, can credit spreads remain so low or even fall? And is this a sign of strength and stability, or a cause for concern?
Comment: An unexpected change at the BoE
The Bank of England (BoE) on Monday somewhat unexpectedly announced that deputy governor for financial stability, Sir Andrew Large, would be leaving the Bank at the end of the year.
Comment: Dealing with financial risks
Financial systems around the world have changed dramatically in the last 30 years. Borrowing and lending volumes have increased to levels unimaginable three decades ago, lending rates recently reached historically low levels, and instruments catering to…
Comment: Venezuela's reserves
The Central Bank of Venezuela last week confirmed that it had liquidated more than half of its operational reserves and deposited the funds at the Bank for International Settlements (BIS).
Comment: Intervention tightrope
Central bank officials from three of the world's most important emerging markets this week made comments to the effect that they are intervening in foreign exchange markets and could continue to do so in the future. The reasons they put forward for doing…
Argentina explains: Why gold?
According to this article published on Tuesday 4 October, suggestions that the Central Bank of Argentina, along with other South American nations, might increase its gold holdings has now become a realistic scenario.
Int'l payment systems expand presence in Russia
This article published on Monday 3 October reports that payment systems have achieved notable success in Russia but operate differently than in most other markets.
Why has gold been rising?
With gold reaching a near-18 year high in trading, this article published on Monday 26 September says gold bugs are now enthusiastically talking of $500 an ounce and beyond.
China's bonding experience gains some speed
This article published on Monday 19 September asks whether China, Asia's No.2 economy, can reach its potential without a bond market. The good news is that efforts to create one are gaining momentum, it says.
Central Bank of Argentina - a changed view on gold
This article published Monday 19 September says the Central Bank of Argentina has now changed its philosophy and was a purchaser of gold during 2004 as it reshaped its portfolio and may consider taking more in the future along with other Latin American…
Comment: Gold stages a comeback
With the gold price hitting 18-year highs, it is about time there was serious re-thinking among central bankers with regards to holding gold as a part of their reserve portfolios.
Fed will raise rates and indicate more to come
According to an article published on Monday 19 September, the Federal Reserve's FOMC committee will increase interest rates on Tuesday, with financial markets gradually accepting that the effect of Hurricane Katrina won't deter them.
Comment: Divergence and monetary policy
The issue of regional economic divergence continues to attract much attention from policymakers and academics studying the eurozone. The issue is particularly important for the ECB, as it is often mentioned that divergent economic performance across…
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.
Comment: Managing Asian reserves
The accumulation of foreign-exchange reserves by Asian central banks is one of the most talked-about developments in international finance in recent years. Arguably, it is also one of the most misunderstood ones too - its causes and consequences being…
Uniform accounting rules face hurdles in Europe
This article published on Tuesday 13 September says that although the path to uniform and stricter global accounting rules is paved with good intentions, problems have arisen in Europe that could delay the adoption of parts of International Accounting…
Comment: Revisiting the risk landscape
Many central bankers and international financial institutions have as usual started the new season by surveying the changing risk landscape.
BOT soldiers guard the nation's finances
This article published on Monday 12 September looks at the Bank of Thailand's reserve management team. There's no longer concern about over-reacting if speculators come pounding at the barriers again, as they did in 1996-97, it says.
Asia can fight speculators without its own IMF
The Indonesian authorities plan to seek $6 billion in standby funds from Japan to bolster the country's depleting foreign reserves has seen the Indonesian currency slump to a four-year low, this article published on Tuesday 6 September reports.
U.K. interest rates are heading for a decline
The Bank of England's Monetary Policy Committee will decide on UK interest rates this Thursday. This article published on Wednesday 7 September suggests there will no surprise when the MPC leaves interest rates unchanged at 4.5 per cent, but rates are…
Bank of Italy's Fazio defies mounting calls to go
Antonio Fazio continues to defy calls for his resignation from the Bank of Italy. This article published on Tuesday 6 September says the face-off between Fazio and a growing number of government ministers threatens a prolonged institutional crisis in a…