Interbank Market News Scan: Fed chairman Jerome Powell to confirm interest rate lift-off this month.

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Interbank, Federal Reserve, House Financial Services, Jerome Powell. Federal Reserve Chairman Jerome Powell sees strong labor demand but subdued labor supply. Inflation running above the Fed’s two percent target and continuing supply bottlenecks has set the table for the Fed’s policy rate decision later this month. See testimony here. Source: Board of Governors of the Federal Reserve.

Interbank, SWIFT, CIPS, China, yuan. “Local firms are now talking about how to improve and develop CIPS payment services, which will boost the internationalization of the Chinese yuan and help companies do business overseas. But the SWIFT ban on Russia may boost the development of non-US dollar and non-SWIFT transactions, including CIPS. It may also stimulate e-yuan, China’s official digital currency.” See article here. Source: Shine.cn.

Interbank, Russia, foreign investors. “The Russian stock market has been shut for days and officials are barring any cash going to foreign investors. Funds from London to New York have suspended trading. As President Vladimir Putin steps up the attack on Ukrainian cities and tougher sanctions take effect, the country’s financial ties to the outside world are breaking down.” See article here. Source: Financial Post.

Interbank, Egypt, Ukraine, capital flight. “Egypt has seen hundreds of millions of dollars leave its treasury markets since the Russian invasion of Ukraine last week as investors flee emerging markets for safer pastures, two bankers with knowledge of the matter said.” See article here. Source: Yahoo! Finance.

Foreign exchange rates of interest as of 11:00 am AST

EUR/USD=1.11658

GBP/USD=1.33797

USD/CAD=1.26912

USD/MXN=20.5265

USD/JPY=114.937

USD/CNY=6.31083

USD/INR=75.4949

USD/NGN=415.524

Source: OANDA

Dollar Index=97.70

Source: MarketWatch

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