Interbank market news scan as of 12:42 am AST: #centralbanks, #financeministries

ICICI Bank on Thursday said it has executed its first interbank-money market transaction linked with Secured Overnight Funding Rate (SOFR) through its Hong Kong branch. This transaction is part of the bank’s Benchmark Transition Management plan to assess the preparedness towards a smooth transition to the new Alternative Reference Rates (ARRs), the Bank said in a statement. ICICI bank makes its first interbank-money market transaction linked with SOFR – The Hindu BusinessLine

A battle between one of Mexico’s richest men and one of its most respected institutions appears to have ended in a victory for the central bank. Billionaire Loses to Mexico Central Bank in Battle Over Cash (msn.com)

The Bank of Japan and the European Central Bank both had monetary policy meetings, but as widely anticipated, left their current policies unchanged, while pledging to continue supporting economies through the pandemic. The announcements have no impact on currencies, with financial markets trading on sentiment. https://www.fxstreet.com/news/forex-today-unimpressive-central-banks-dollar-in-trouble-202101211939

Both the Bank of Canada and European Central Bank met in recent days, setting the tone for 2021: more easing is possible, but might not be needed. https://www.dailyfx.com/forex/fundamental/central_bank_watch/2021/01/21/central-bank-watch-boc-ecb-interest-rate-expectations-update-january-21.html

The Bank of International Settlements has outlined plans to embark on a variety of CBDC trials worldwide this year. https://cointelegraph.com/news/the-central-bank-of-central-banks-is-building-a-cbdc-settlement-platform

Interbank market news scan: Central banks, foreign exchange

With more than a trillion euros in stimulus still in the pipeline to the economy, the European Central Bank left its key bond-purchase program unchanged Thursday as the 19-country eurozone endures a winter economic slowdown due to the pandemic. European Central Bank stimulus on track as economy struggles – ABC News (go.com)

The Brazilian real strengthened on Thursday as bets grew for a more hawkish stance by the country’s central bank after it removed its “forward guidance” to keep interest rates low for a long time. EMERGING MARKETS-Brazilian real rises as central bank drops ‘forward guidance’ | Nasdaq

President Biden is expected to nominate Michael Barr, a former Treasury Department official, to a top post overseeing national banks such as JPMorgan Chase & Co. and Wells Fargo & Co., according to people familiar with the decision. Biden expected to tap Michael Barr as comptroller of the currency – MarketWatch

U.S. Treasury announces members of its senior staff. Treasury Announces the Appointment of Members of Senior Staff | U.S. Department of the Treasury

21 January 2021

Interbank market news scan: As of 1:22 pm AST, Central banks, cryptocurrency, foreign exchange

Central banks across Asia are starting the year juggling policy reviews and political pressure to do more to support their economies. Asian Central Banks Start Year Juggling Politics, Policy Reviews (msn.com)

The ECB’s Governing Council, led by President Christine Lagarde, will now likely pause for the foreseeable future and use this week’s meeting to steer markets in a new direction, as well as discussing the strength of the euro. After unprecedented stimulus, the European Central Bank is set for a change of focus (msn.com)

The French central bank said on Monday it would exit from coal and limit exposure to gas and oil in its investment portfolio by 2024 as part of a shift towards more environmentally friendly assets. French central bank to exit coal, cap oil and gas investments | Reuters

Janet Yellen, who is expected to lead the Treasury Department for the incoming Biden Administration, described cryptocurrencies as a “particular concern” when it comes to terrorist financing. Biden Treasury pick Janet Yellen warns cryptocurrency poses terrorism risk (msn.com)

Even after setting a new record high of $1,439 on Monday, the rally for Ethereum’s ether cryptocurrency may have only just begun, according to Fundstrat Global Advisors strategist David Grider. Ether’s Rise to Record Highs May Propel Cryptocurrency to $10.5K: Fundstrat Global – CoinDesk

Lacalle believes that “numerous governments would be very very happy to implement strict regulations on cryptocurrencies,” noting that it is “fundamentally because, as we are seeing, cryptocurrencies are rising dramatically as a response to a very aggressive policy from central banks.” Economist Slams ECB Chief Lagarde’s Bitcoin Remarks as Dangerous for Cryptocurrency Regulation – Regulation Bitcoin News

Interbank market scan, as of 11:17 am AST: Central banks, cryptocurrency, foreign exchange

Beijing is keen to end the dollar hegemony that affords Washington vast power and ultra-low borrowing costs. It also wants to pull in more foreign capital to accelerate its economic development. Opinion | How Trump made China’s currency great again – The Washington Post

The USD/JPY bottoms are close at 102.00’s and nearly 200 pips. USD/CAD 200 pip bottoms at 1.2500’s. USD 200 pip bottoms means all currencies listed as USD/Other pair are all close to major bottoms at 200 ish pips. Currency market: USD/PLN and USD/BRL (fxstreet.com)

Brussels faces a steep climb in its effort to boost the international role of the euro as part of its quest to strengthen the EU’s self-reliance, investors and analysts said after the bloc set out new ambitions for the single currency. EU faces barriers to boosting single currency’s global status | Financial Times (ft.com)

European multinational corporations suffered the brunt of the $9.82 billion reported lost due to currency volatility in the third quarter of 2020. Kyriba’s Currency Impact Report Reveals $9.82 Billion in Total Quarterly FX Losses for European and North American Multinational Corporations (apnews.com)

The negative impact of currency fluctuations on North American company results fell sharply in 2020’s third quarter, reversing an upward trend, according to data from treasury and financial management firm Kyriba released on Tuesday. Currency Hit to North American Companies Dropped in Third Quarter: Kyriba | Investing News | US News

Banque de France has successfully conducted a central bank digital currency (CBDC) experiment using a blockchain platform for interbank settlement. French Central Bank Trials Digital Currency for Interbank Settlement | Nasdaq

Foreign exchange rates as of 2:34 pm AST, as Yellen affirms market stance on exchange rates …

CAD/USD=0.7831USD/CAD=1.27681USD strengthens against CAD
MXN/USD=0.05046USD/MXN=19.8053USD strengthens against MXN
JMD/USD=0.00683USD/JMD=143.327 
GYD/USD=0.0047USD/GYD=205.536 
BBD/USD=0.5000USD/BBD=2.0000 
TTD/USD=0.1445USD/TTD=6.6701USD strengthens against TTD
XCD/USD=0.3704USD/XCD=2.70 
GBP/USD=1.3566USD/GBP=0.7370USD strengthens against GBP
EUR/USD=1.2072USD/EUR=0.8282USD flat against EUR
NGN/USD=0.0026USD/NGN=385.603USD strengthens against NGN
GHS/USD=0.1708USD/GHS=5.8282GHS strengthens against USD
ZAR/USD=0.0656USD/ZAR=15.2324USD strengthens against ZAR
KES/USD=0.0090USD/KES=109.112 
BTC/USD=36,027.0000USD/BTC=0.0000 
ETH/USD=1218.1900USD/ETH=0.0008ETH strengthens against USD
JPY/USD=0.0100USD/JPY=103.73 
CNH/USD=0.1539USD/CNH=6.4954 
AUD/USD=0.7681USD/AUD=1.3016AUD weakens against USD
Source: OANDA

Interbank market news scan, as of 10:50 am AST: Central banks, forex, cryptocurrencies

19 January 2021

The United States Senate Committee on Finance today considers the nomination of Janet Yellen as Secretary of the Treasury. Hearing | Hearings | The United States Senate Committee on Finance

China’s interbank treasury bond index in net price opened lower at 980.92 points Monday, lower from the previous close of 981.93 points, according to the China Foreign Exchange Trade System. China’s interbank treasury bond index opens lower Monday – Xinhua | English.news.cn (xinhuanet.com)

The shift of jobs and assets to Paris after Brexit will accelerate this year, providing Europe with an opportunity to strengthen its own financial infrastructure, according to Bank of France Governor Francois Villeroy de Galhau. Bank of France Governor: Brexit Finance Shift to Paris to Accelerate in 2021 – Bloomberg

Australia’s major bank economists expect the country’s central bank to extend its A$100 billion ($77.05 billion) government bond buying programme beyond April with an updated guidance expected as soon as next month. Australia central bank seen extending QE beyond April – economists (msn.com)

More London-based financial firms are expected to relocate to France this year after Britain completed its Brexit transition, the head of the French central bank said on Tuesday. French central bank sees firms speeding up Brexit relocation this year | Reuters

Ether is closing in on an all-time high. The cryptocurrency, one of many alternatives to bitcoin, rallied as much as 17% on Tuesday to an intraday high of $1,439, according to data from industry site CoinDesk. Ether, the world’s second-biggest cryptocurrency, is closing in on an all-time high (msn.com)

Stablecoins are taking a promising step forward after the Department of the Treasury approved them for use by U.S. banks. While that helps them progress toward being a currency on par with those issued by governments, many are still unclear on what exactly stablecoins are and what sets them apart from other cryptocurrencies. What Are Stablecoins? Why Investors Are Moving To Cryptocurrency’s Safest Bet (ibtimes.com)

Interbank market news scan, at 1:04 am AST: Latest news on central banks, cryptocurrency, foreign exchange …

The dollar slipped from close to its highest in nearly one month on Tuesday as caution set in before U.S. Treasury Secretary nominee Janet Yellen testifies later, with traders keeping a close eye on the policies of the incoming Joe Biden government. Dollar retreats from one-month high as traders eye Biden’s FX policy | Reuters

Among the many races the pandemic has accelerated, none is so pointless as the issuance of central-bank digital currencies. The Canadian government, which should know better, has jumped into the fray despite earlier opposition. Reversing comments made in February 2020, Bank of Canada deputy governor Timothy Lane now believes state involvement in cryptocurrencies is a pressing matter. Along with its G7 partners, Canada has been exploring central-bank digital currencies since 2017 but the race suddenly sped up in mid-October. Central banks should stay clear of cryptocurrencies – Canadian Investor

China’s Blockchain-based Service Network (BSN) – a permissioned blockchain network for building decentralized applications and tokens – plans on releasing a beta central bank digital currency (CBDC) as early as the second half of 2021. https://www.nasdaq.com/articles/chinas-blockchain-based-service-network-to-integrate-central-bank-digital-currency-2021-01

Frank Giustra, billionaire investor and mining financier, is warning that governments and central banks are going to do everything they can to stifle Bitcoin’s journey towards universal adoption. https://dailyhodl.com/2021/01/17/billionaire-investor-says-central-banks-will-stop-at-nothing-to-clamp-down-on-bitcoin/

Interbank market news scan at 11:38 am AST. Latest on central banks and forex.

Investors may take Janet Yellen’s expected endorsement of a market-driven exchange rate as an additional green light for the U.S. currency’s long-term downtrend. Dollar Shorts Mount Before Yellen Outlines Market-Based Policy – Bloomberg

Gold edged up, recovering from an almost seven-week low, amid caution in markets as investors assessed the outlook for the dollar and the timeline for a U.S. stimulus package. Gold Edges Up From December Low With Focus on Stimulus, Dollar – Bloomberg

Oil futures edged lower as the dollar rose, while physical crude prices in Asia continued to weaken. Oil Near $52 With Virus Still Surging and Dollar Strengthening – Bloomberg

Five of six rate setters at the Bank of Israel voted to keep the benchmark interest rate at 0.1% on Jan. 4, minutes of the discussions showed on Monday. Five of six Bank of Israel MPC members voted to keep rate at 0.1%, minutes show | Reuters

The European Union needs a “masterplan” to move euro financial services from London to the bloc if it wants to expand the single currency’s role in a global economy dominated by the U.S. dollar, a senior EU lawmaker said on Monday. Markus Ferber, a senior member of the European Parliament, said if the EU wants to compete with the greenback, it needs a financial system to match it. EU needs ‘masterplan’ to grab euro finance from London | Reuters

Brazil’s central bank is poised to hold its benchmark rate steady again on Wednesday but will likely emphasize the need for policy normalization in response to quickly developing inflation pressures, a Reuters poll showed. Brazil central bank to hold rates this week, stress policy normalization | Regina Leader Post