The Interbank Market News Scan for 10 July 2022

Interbank, Zimbabwe, inflation, currency.  Zimbabwe is considering using the US dollar as the country’s legal tender and selling gold coins as the nation combats inflation. Source: Bloomberg.

Interbank, China. Protesters rush branch of China’s central bank on news that its manager is on the run for financial crimes. Source: KRQE News.

Interbank, central bank, Canada. The Bank of Canada’s most recent business outlook survey showed Canadians believe inflation will remain higher than previously expected — and for a while. Canadians expect inflation to be at four per cent five years from now, the survey found. Source: Houston Today.

Interbank, foreign exchange, USD/CAD. Unless there is a dramatic and unexpected improvement in US or Canadian consumer inflation, rates will continue to increase until stopped by a recession. Source: FX Street.

Crypto, retirement. When the Houston Firefighters Relief and Retirement Fund bought $25 million in cryptocurrencies, with the fund’s chief investment officer touting their potential, retired fire Capt. Russell Harris was concerned. “I don’t like it,” Harris said. “There’s too many pyramid schemes that everybody gets wrapped up in. That’s the way I see this cryptocurrency at this time. … There might be a place for it, but it’s still new and nobody understands it.” Source: AP   

Cryptocurrency, banking, blacks. Can cryptocurrency become an alternative financial system for people of color who have historically faced discriminatory banking practices? Some crypto enthusiasts of color who spoke with ABC News say they believe so, even despite the crash in the price of digital currencies. Source: ABC News.

Cryptocurrency, Federal Reserve, regulation. “Recent volatility has exposed serious vulnerabilities in the crypto financial system.1 While touted as a fundamental break from traditional finance, the crypto financial system turns out to be susceptible to the same risks that are all too familiar from traditional finance, such as leverage, settlement, opacity, and maturity and liquidity transformation. As we work to future-proof our financial stability agenda, it is important to ensure the regulatory perimeter encompasses crypto finance.” — Lael Brainard Source: Board of Governors of the Federal Reserve System.

FX rates as of 5:50 pm 10 July 2022

Currency PairExchange Rate

Source: OANDA