Statement by Press Secretary Jen Psaki on President Biden’s Call with President Xi Jinping of the People’s Republic of China

Source: Executive Office of the President

President Joseph R. Biden, Jr. will speak with President Xi Jinping of the People’s Republic of China (PRC) this Friday. This is part of our ongoing efforts to maintain open lines of communication between the United States and the PRC. The two Leaders will discuss managing the competition between our two countries as well as Russia’s war against Ukraine and other issues of mutual concern.

17 March 2022

Asia: Foreign exchange rates at 11:03 pm AST

Currency Pair14 March 202215 March 202216 March 202217 March 202218 March 2022
USD/CNY6.334816.358576.37024  
USD/JPY117.289117.914118.82  
USD/INR76.53276.417176.7321  
USD/PKR178.602178.945178.596  
USD/BDT84.273684.552384.3774  
USD/SAR3.745243.745243.74524  
USD/SGD1.361511.36511.36581  
USD/MYR4.191474.200534.20484  
USD/VND22,874.122,888.522.883.3  
AUD/USD0.728990.723530.7193  
NZD/USD0.680550.677950.67566  
Dollar Index99.2898.8798.86  
Sources: OANDA, MarketWatch

Asia: Foreign exchange rates at 1:00 am AST

Currency Pair14 March 202215 March 202216 March 202217 March 202218 March 2022
USD/CNY6.334816.35857   
USD/JPY117.289117.914   
USD/INR76.53276.4171   
USD/PKR178.602178.945   
USD/BDT84.273684.5523   
USD/SAR3.745243.74524   
USD/SGD1.361511.3651   
USD/MYR4.191474.20053   
USD/VND22,874.122,888.5   
AUD/USD0.728990.72353   
NZD/USD0.680550.67795   
Dollar Index99.2898.87   
Sources: OANDA, MarketWatch

Interbank Market News Scan: PBOC announces loan prime rate …

Central Bank of the People’s Republic of China

Under the authorization of the People’s Bank of China (PBC), the National Interbank Funding Center (NIFC) announced the Loan Prime Rate (LPR) on February 21, 2022 as follows: the one-year LPR is 3.7% and the above-five-year LPR is 4.6%. The rates are effective until the next release. See article here. Source: The People’s Bank of China.

In order to keep the liquidity of the banking system adequate at a reasonable level, the People’s Bank of China conducted reverse repo operations in the amount of RMB10 billion through interest rate bidding on February 21, 2022. The reverse repo operations have a maturity of seven days at 2.10%. See article here. Source: The People’s Bank of China.

The following are the central parity rates of the Chinese currency renminbi, or the yuan, against 24 major currencies announced on Monday by the China Foreign Exchange Trade System. See article here. Source: China.org.cn

Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) announced (last Friday) that it will further extend the MAS SGD Facility for ESG Loans [1]  (the Facility). This extension will complement the six-month extension of Enterprise Singapore’s (ESG) Temporary Bridging Loan Programme  [2]  (TBLP) from 1 April 2022 to 30 September 2022. 

2   The Facility will continue to provide Singapore Dollar (SGD) funding to eligible financial institutions [3] (EFIs) for a two year tenor. A revised interest rate of 0.5% per annum [4] will apply for funding provided from the May 2022 application window onwards, to better reflect interest rates in Singapore, which have risen alongside the economic recovery. 

3   Since its introduction in April 2020, the Facility has disbursed a total of S$14.2 billion to EFIs in support of their lending to companies under the ESG Loan Schemes. Collectively, the Government’s risk sharing through the ESG Loan Schemes and MAS’ lower-cost funding through the Facility will continue to keep borrowing costs low for local enterprises to support their cashflow needs.

  1. [1] The Facility was established on 20 April 2020. The Facility was extended twice on 12 October 2020 and 5 July 2021, to complement ESG’s two extensions of the TBLP, the latest of which was from 1 October 2021 to 31 March 2022.
  1. [2] The TBLP was introduced in March 2020 for a year to help companies access working capital for their business needs during the COVID-19 crisis. The TBLP was extended twice on 12 October 2020 , and 5 July 2021 , the latest of which was from 1 October 2021 to 31 March 2022. On 18 February 2022, ESG has announced a further extension to 30 September 2022.
  1. [3] Banks and finance companies participating in the ESG Loan Schemes, which refer to the TBLP and the Enterprise Financing Scheme – SME Working Capital Loan, are eligible to tap on the Facility.
  1. [4] Since April 2020, the interest rate was 0.1% per annum for a two-year tenor to EFIs. Funding provided to EFIs in the February, March and April 2022 application windows will continue to be at the interest rate of 0.1% per annum for a two-year tenor.

Source: Monetary Authority of Singapore

Interbank Market News Scan: Remittances to Pakistan decline; Chinese bonds offering safe haven for investors concerned about volatility …

Interbank, Ghana, cedi. “Uncertainties surrounding the country’s ongoing access to forex are causing speculations on the FX market which has effectively driven the spread between cedi depreciation on the interbank and the retail markets.” See article here. Source: GhanaWeb

Interbank, China, yuan. “Holdings of Chinese government bonds by offshore investors rose in January despite a steep drop in yield premiums over U.S. government debt, as investors continued to seek safe havens from inflation and rising rates afflicting other markets.” See article here. Source: Nasdaq

Interbank, Pakistan, rupee. “Rupee slipped 0.13 percent (-23 paisa) against the US dollar last week despite recent inflows from the International Monetary Fund.” See article here. Source: Daily Times

Interbank, China, bonds. “China’s interbank treasury bond index in net price opened at 996.19 points Monday, lower than the previous close of 997.24 points, according to the China Foreign Exchange Trade System.” See article here. Source: China.org.cn

Foreign exchange rates and dollar index as of 5:20 am EDT

EUR/USD=1.13456

GBP/USD=1.35484

USD/MXN=20.5234

USD/GTQ=7.51781

USD/NGN=416.51

USD/GHS=6.32313

USD/VND=22,686.8

USD/JPY=115.451

USD/KRW=1,199.56

USD/INR=75.412

USD/BTC=0.00002

USD/ETH=0.00034

Source: OANDA

Dollar Index=96.29

Source: MarketWatch

Interbank Market News Scan: China tightens regulations on foreign exchange market….

5 September 2021

Interbank. Chinese officials to tighten foreign exchange market supervision. https://www.forexlive.com/centralbank/!/chinese-officials-to-tighten-foreign-exchange-market-supervision-20210905

Interbank. Nigeria. Naira. Former Deputy Governor of Central Bank of Nigeria(CBN), Dr Obadaiah Melafia weekend attributed the dip of the naira in the foreign exchange market to the bad policies of President Muhammadu Buhari’s administration and the tensions across the country. “Nigeria is a failed state.” https://www.vanguardngr.com/2021/09/dip-of-naira-in-foreign-exchange-market-due-to-buharis-bad-policies-mailafia-alleges/

Interbank. Forex. So what fundamentals are impacting the foreign exchange markets? https://finance.yahoo.com/news/introduction-major-fundamental-influences-forex-080046373.html

Interbank. India. India’s management of foreign exchange reserves results in supporting 18 months of imports. https://www.deccanherald.com/opinion/panorama/management-of-foreign-exchange-reserves-1026066.html

Interbank. Russia. Russia’s central bank provides alternative economic forecast for the next 18 months; one of a severe down-turn vs. moderate inflation. https://www.themoscowtimes.com/2021/09/03/world-economy-could-face-2008-meltdown-russias-central-bank-warns-a74962

Interbank. Brazil. Digital real. The Central Bank of Brazil is still studying the creation of a Digital Real, according to statements given by Fabio Araujo, a representative of the institution. https://news.bitcoin.com/central-bank-of-brazil-researches-creation-of-digital-real/

Interbank. Dollar Index. As of 10:33 pm EST, the Yahoo Market Watch Dollar Index was at 92.16. https://www.marketwatch.com/investing/index/dxy/charts?mod=mw_quote_tab

Central bank decisions as of 5 September 2021, 11:25 pm EST

AUD/USD 0.7437

As of 11:01 pm EST, no Reserve Bank of Australia decisions impacting rates.

NZD/USD 0.7137

As of 11:13 pm EST, no Reserve Bank of New Zealand decisions impacting rates.

USD/JPY 109.8100

As of 11:20 pm EST, no Bank of Japan decisions impacting rates.

USD/CNY

As of 11:24 pm EST, no People’s Bank of China decisions impacting rates.

For a consultation on any regulatory or legislative discussions or announcements, please reach out to us at altondrew@altondrew.com for information on consultation rates and to reserve an appointment.

Please support my efforts by making a donation via PayPal or visiting our advertisers.

Alton Drew

Interbank Market News Scan: Dollar, yuan see similar price increases in terms of Asian currencies. Euro has to play catch up.

25 August 2021

As US Vice-President Kamala Harris wraps up her Asia tour this week, I was curious to see how currency prices have moved since the Biden-Harris administration took office on 20 January 2021.  I see a battle for currency preference between the United States, the Eurozone, and China and so far, seven months into the Biden-Harris administration, the Eurozone is being left behind.

Where the dollar, the yuan, and the euro are priced in terms of the ringgit, Indian rupee, and the yen, the yuan has seen the greatest price increase since 20 January 2021.  For example, during the period 20 January 2021 to 25 August 2021, USD/JPY increased 6%; USD/MYR increased 4%, and the USD/INR increased 1.8% for an average of 3.93%.

During the same period, the CNY/JPY increased 6%; CNY/MYR increased 14%; and the CNY/INR increased 1.6% for an average of 7.2%.

Meanwhile, the euro got the least love with EUR/JPY increasing 2.9%; EUR/MYR relatively flat at 0.008%; and EUR/INR decreasing by 1.29%.  Using this bucket of Asian currencies, average euro increase is around .54%

In the immediate run, I don’t see dollar or euro prices in terms of the ringgit, yen, or Indian rupee increasing especially if Asian economies are somehow able to increase their respective economies productive capacities and increase trade with each other, taking advantage of their resource-rich environments.  The Harris-Biden administration’s fall in polling numbers as a result of perceived mismanagement of American withdrawal from Afghanistan and less than stellar campaign to get more of the American population vaccinated may likely weigh on the effectiveness of Ms Harris’ attempt to garner strategic trading partners in the region.  

Alton Drew

 For a consultation on any regulatory or legislative discussions or announcements, please reach out to us at altondrew@altondrew.com for information on consultation rates and to reserve an appointment.

 Foreign exchange rates of interest as of 10:20 am EST

Currency PairFederal ReserveReuters
AUS/USD0.71330.7254
USD/BRL5.39905.2419
USD/CAD1.28531.2623
USD/CNY6.50126.4771
USD/DKK6.36126.3337
EUR/USD1.16901.1739
USD/HKD7.78977.7840
USD/INR74.350074.2250
USD/JPY109.7700109.9300
NZD/USD0.68300.6949
USD/MYR4.23854.2020
Sources: Federal Reserve, Reuters

Interbank Market News Scan: Waiting for Jackson Hole while Kamala Harris attempts to keep the US out of a global trading hole.

24 August 2021

The Jackson Hole Economic Policy Symposium, hosted by the Federal Reserve Bank of Kansas City, is set to begin on 26 August 2021 with oral and written presentations focused on macroeconomic policy in an uneven economy.  Federal Reserve Board chairman Jerome Powell will make a presentation on 27 August.

Since the Federal Reserve released its minutes of the 27-28 July Federal Open Market Committee meeting, the biggest buzz has been speculation s to when the Federal Reserve would begin easing back on its $120 billion per month purchases of agency mortgage-backed securities and U.S. Treasury securities.  These purchases have been instrumental in keeping interest rates low during the Covid-19 pandemic with the intent of spurring business spending and investment, sustaining consumer demand, and maintaining certainty in the financial markets.

The minutes from the FOMC meeting has hinted at a possibility of Fed asset purchases tapering off as early as the end of this year and upward pressure on interest rates, especially in the longer-term range, is expected.

Meanwhile, U.S. Vice-President Kamala Harris today heads to Vietnam as part of the second leg of a four-day tour of Asia.  Ms Harris’ primary mission appears to include not only the building of relationships with certain Asian countries, but to let Asian countries know that they have an economic partner alternative to China.

China’s Belt and Road Initiative throughout Asia as well as its claims on the South China Sea through which trillions in dollars of commercial trade passes through poses an economic threat to the United States.  Unless the US can pose itself as a reliable economic trading partner to Malaysia, Vietnam, Singapore, and Taiwan, amongst other nations, then the United States may be locked out of the Asian markets or forced to buy and sell goods and services in the region on onerous terms.

Ms Harris has been making the argument that China’s efforts in the South China Sea are illegal under international law.

For a consultation on any regulatory or legislative discussions or announcements, please reach out to us at altondrew@altondrew.com for information on consultation rates and to reserve an appointment.

Foreign exchange rates of interest as of 9:00 am EST

Currency PairFederal ReserveReutersOANDA
AUS/USD0.71330.72430.7184
USD/BRL5.39905.37895.3793
USD/CAD1.28531.26181.2718
USD/CNY6.50126.47726.4833
USD/DKK6.36126.33596.3399
EUR/USD1.16901.17351.1728
USD/HKD7.78977.78787.7912
USD/INR74.190074.194074.0634
USD/JPY109.7700109.6700109.8400
NZD/USD0.68300.69490.6867
USD/MYR4.23854.21704.2265
Source: Federal Reserve, Reuters, OANDA

Interbank Market News Scan: As Afghanistan transitions, currency traders should wait for dust to settle in light of China’s influence …

15 August 2021

Currency pairExchange rate10-year yield, government securities
AFN/CNY0.07982.88
AFN/USD0.012331.28
Source: OANDA

The transition of political power occurring in Afghanistan today should have traders and brokers asking about the currency trade opportunities under a Taliban-led Afghanistan.  The price of the Afghani has been falling in both US dollars and Chinese renminbi over the last 90 days.  I suspect as Afghanistan moves through its transition over the next 48 hours that western investors will wait for the dust to settle on where yields Afghani-denominated securities will fall out.

After two decades in Afghanistan, the lightening quick deterioration in the ability of the government to maintain control of its territory speaks negatively about the United States as a stabilizing force in the region.  That accolade right now may belong more in China’s court than the U.S.  China has stayed engaged with Afghanistan primarily due to three concerns.

First, the protection of small and medium sized Chinese enterprises in Afghanistan; second, to stop the training of Uygur supporting insurgents from an area of Afghanistan that lies along China’s western border; and third, to maintain a vital component of its Belt and Road Initiative, a policy of transportation and communications infrastructure that facilitates the transfer of resources to China.

China is Afghanistan’s largest investor, having provided Afghanistan with telecom equipment and other telecom infrastructure.  China extracts oil in the Amu Daya basin, and also mines lithium and copper, both essential to providing telecommunications equipment and facilities.

Geographically, Afghanistan provides China with the shortest route between China, the Middle East, the Persian Gulf, and the Arabian Sea, important for cost effective movement of trade.

And because China has shown no interest in “rebuilding Afghanistan”, including altering its political, social, or ideological institutions, it has been able to maintain a dialogue with the Taliban, important now more than ever as Afghanistan sees a change in leadership.

The takeaway:  Traders should monitor the developing government relationships and take note of relative changes in income, prices, commodity availability, and interest rates.

Alton Drew

Sources:

OANDA

China to ‘capitalise’ on West’s Taliban failure as US geopolitical power diminished | World | News | Express.co.uk 

Why China and Russia might find common security ground in Afghanistan | South China Morning Post (scmp.com)

Slowly but surely, China is moving into Afghanistan (trtworld.com)

For a consultation on any regulatory or legislative discussions or announcements, please reach out to us at altondrew@altondrew.com for information on consultation rates and to reserve an appointment.

Interbank Market News Scan: How will G7, NATO impact China-Caribbean trade relationship; foreign exchange …

15 June 2021

News from the Eastern Caribbean Securities Exchange

On 28 June 2021, the Government of St. Lucia will auction a 180-day Treasury bill estimated to raise ECS$10 million.  The Bank of St. Lucia and First Citizens Investment Services are the broker firms.

Food for Thought: On China and the Caribbean

The NATO and G7 meetings held one thing in common other than the membership of a number of rich industrialized countries: China.  While the NATO meeting fell short of calling China an “adversary”, the consensus, especially among the leading industrialized nations, is that China, at a minimum, is a competitive economic threat.

One example of its economic threat is Huawei, a Chinese telecom equipment provider accused of ties to the Chinese military.  Huawei provided less expensive telecom equipment to Europe in direct competition with American telecom equipment providers.  The United States, which banned use of Huawei equipment from its telecom networks, chided its European allies for allowing a threat to privacy via Huawei equipment.  Turning a back on Huawei expectedly gives US companies a wider door to enter through into European markets.

It may be too early to determine the impact on the Caribbean a widening rift between China and the US may present.  By our estimate, using CIA data, at least 12 Caribbean countries have a trading relationship (import only, export only, or both) with China.  Whether the Caribbean will tack away from a relationship with China as a result of moves made by the G7 or NATO remains to be seen.

 Import-Export relationship between CARICOM nations and China

Source: CIA World Factbook

CountryImport from ChinaExport to China
St. LuciaNoNo
Trinidad and TobagoYes (USD366 million)Yes (USD595 million)
SurinameYes (USD168 million)No
St. Vincent and the GrenadinesYes (USD23.7 million)No
MontserratNoNo
GuyanaYes (USD8 million)No
GrenadaYes (USD16 million)No
DominicaYes (USD12 million)No
BelizeYes (USD11 million)No
BarbadosYes (USD136 million)No
Antigua and BarbudaYes (USD39 million)No
The BahamasNoYes (USD33 million)
Cayman IslandsNoNo
HaitiYes (USD795 million)No
St. Kitts and NevisNoNo
JamaicaYes (USD804 million)No
British Virgin IslandsNoNo
Turks and CaicosNoNo
BermudaNoNo
AnguillaNoNo

Foreign exchange rates of interest

Source: OANDA

Currency PairsRates as of 11:15 am AST 15 June 2021
XCD/EUR0.3057
XCD/GBP0.2625
XCD/USD0.3704
XCD/CAD0.4500
XCD/NGN152.3900
XCD/CNY2.3692
XCD/PLN1.3776
XCD/PEN1.43619

Links to follow ….

Caribbean Development. A high-level panel of government and business leaders will explore the impacts of the COVID-19 pandemic on the Caribbean in the opening seminar of the Caribbean Development Bank’s (CDB) 51st Annual Meeting. https://www.caribank.org/newsroom/news-and-events/cdb-annual-meeting-seminar-discuss-policies-economic-recovery-covid-19-and-more-resilient-caribbean

Interbank. China’s interbank treasury bond index in net price opened at 982.99 points Tuesday, lower than the previous close of 983.65 points, according to the China Foreign Exchange Trade System. http://www.china.org.cn/china/Off_the_Wire/2021-06/15/content_77568539.htm

Interbank. The Korea Interbank Offered Rates (KORIBOR) as posted by Yonhap Infomax, the financial news and information arm of Yonhap News Agency, at 11:00 a.m. https://en.yna.co.kr/view/AEN20210615004100320

Banks. Billionaire investor Mark Cuban is very bullish on the future of DeFi, or decentralized finance, and DAOs, or decentralized autonomous organizations. https://www.cnbc.com/2021/06/14/mark-cuban-banks-should-be-scared-of-defi.html