Interbank Market News Scan: Payments, remittances; Banks increasing hiring in Hong Kong

Links you should follow ….

Interbank. China Development Bank has issued US$2bn of domestic US dollar bonds in China’s interbank market, its first such issuance in six years, according to a statement on its website. https://www.nasdaq.com/articles/cdb-prints-first-domestic-usd-bonds-in-six-years-2021-06-04

Interbank. The People’s Bank of China, the central bank, has urged commercial banks to abandon the London Interbank Offered Rate for dollar-denominated loans having a floating-rate benchmark. http://global.chinadaily.com.cn/a/202106/03/WS60b82ddca31024ad0bac34a6.html Remittances. Moroccans residing abroad (MREs) have sent back nearly $3.3 billion (MAD 28.8 billion) in remittances in the first four months of the year.  https://www.moroccoworldnews.com/2021/06/342716/morocco-sees-45-3-increase-in-remittances-in-first-quarter-of-2021

Banks. The pace of interest rate hikes by emerging market central banks slowed in May as policy makers in developing nations face uneven economic recoveries from the COVID-19 pandemic.  https://www.reuters.com/article/emerging-rates/graphic-grinding-higher-emerging-market-central-banks-raise-rates-in-may-idUSL5N2NM29S

Banks. If you’ve looked at your savings account statement recently, you may have noticed a lower interest rate than you were expecting. Perhaps as low as 0.06%. This is not a typo. https://www.forbes.com/sites/forbesfinancecouncil/2021/06/04/why-digital-banks-offer-higher-interest-rates-on-savings-accounts/?sh=325769ed6ccc

Banks. Some global banks, funds and other financial services providers say they are stepping up hiring in Hong Kong, in a sign the city’s unique position as a financial gateway to China is outweighing concerns about Beijing’s tightening grip over it. https://www.reuters.com/business/finance/banks-bulk-up-hong-kong-china-business-overshadows-politics-2021-06-03/

Payment systems. The United States’ restaurant delivery marketplace seems like a complex tangle of emerging and incumbent delivery services, technological platforms and payment methods, but it has nothing on Europe’s. https://www.pymnts.com/restaurant-innovation/2021/limonetik-on-how-payment-methods-can-make-or-break-food-marketplaces-international-expansion/

Payment systems. Russia’s central bank governor, Elvira Nabiullina, has said for CNBC that digital currencies will be the future of financial systems, as the economy moves online. https://thepaypers.com/payments-general/the-digital-rouble-could-help-russia-bypass-the-swift-banking-payment-system–1249437

Foreign exchange rates of interest, 30-day trading range; 5 May 2021 to 4 June 2021

Source: OANDA

Currency PairsRates as of 11:20 am AST 4 June 2021Rates as of 10:30 am AST 5 May 2021Percentage Change
XCD/EUR0.30340.3085-1.7%
XCD/GBP0.26190.2664-1.7%
XCD/USD0.37040.3704flat
XCD/CAD0.44730.4548-1.6%
TTD/EUR0.11910.1206-1.2%
TTD/GBP0.10230.1041-1.7%
TTD/USD0.14490.1448flat
TTD/CAD0.17500.1778-1.6%
GYD/EUR0.00380.0038flat
GYD/GBP0.00330.0033flat
GYD/USD0.00460.0046flat
GYD/CAD0.00560.0056flat

For the period 5 May 2021 to 4 June 2021, the Eastern Caribbean saw a continued fall in exchange rates between the European Union (-1.7%); Great Britain (-1.7%); and Canada (-1.6%).  The XCD is pegged to the U.S. dollar and for that reason remained flat.

The Trinidad and Tobago dollar saw its price fall over the same period in terms of the euro (-1.2%); the pound (-1.7%); and the Canadian dollar (-1.6%).  The U.S. dollar price for the TTD remained flat over that period.

The euro, dollar, pound, and loonie rate of the Guyanese dollar remained flat during the 5 May 2021-4 June 2021 period.

Interbank Market News Scan: Eastern Caribbean and Trinidad and Tobago dollars see ups and downs over last 30 days …

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Trading desks. As Beijing attempts to regulate and suppress the cryptocurrency boom, traders have been evading regulatory oversight by using over-the-counter trading desks. https://www.investing.com/news/cryptocurrency-news/chinese-traders-turn-to-otc-desks-amid-regulatory-crackdown-2519626

Trading desks. A study by UNSW Business School associate professors Elise Payzan-LeNestour and James Doran looked at how ambient sound affects financial traders’ abilities to perceive financial risks.  https://www.financialstandard.com.au/news/how-noise-impacts-trading-performance-179778519

 Interbank. Global financial regulators on Wednesday urged firms to stop using Libor by the end of the year, and said derivatives markets linked to the tarnished interbank rate should switch to “risk free rates” or RFRs compiled by central banks. https://www.reuters.com/article/us-g20-libor-regulator-idUSKCN2DE112

Foreign exchange rates of interest; 30-day range from 2 May 2021 to 2 June 2021

Currency PairsRates as of 10:30 am AST 2 June 2021Rates as of 2 May 2021Percentage Change
XCD/EUR0.30290.3080-1.7%
XCD/GBP0.26100.2679-2.6%
XCD/USD0.37040.3704flat
XCD/CAD0.44630.4551-1.9%
TTD/EUR0.11880.1203-1.2%
TTD/GBP0.10230.1046-2.2%
TTD/USD0.14520.1446+.41%
TTD/CAD0.17500.1776-1.5%
GYD/EUR0.00380.0038flat
GYD/GBP0.00330.0033flat
GYD/USD0.00460.0046flat
GYD/CAD0.00560.0056flat
Source: OANDA

The Eastern Caribbean region saw its foreign exchange rate decrease or remain flat between the European Union, Great Britain, the United States, and Canada.  The Euro price for the Eastern Caribbean dollar fell 1.7% to EUR 0.3029 from EUR 0.3080 on 2 May 2021.  The pound price of an Eastern Caribbean dollar fell 2.6% to EUR 0.2610 from its 2 May 2021 level of EUR 0.2679. The Canada dollar price of the XCD fell 1.9%.

The Trinidad and Tobago dollar was a mixed bag over the same 30-day period.  The Canada dollar price for TTD fell 1.5% from CAD 0.1776 to CAD 0.1750.  The Euro price of the TTD fell 1.2% to EUR 0.1188 from EUR 0.1203. Meanwhile, the pound price of the TTD fell 2.2%.

The price for the Guyanese dollar remained flat over the period 2 May 2021 to 2 June 2021.

As of 11:43 am AST, foreign exchange rates between U.S., the Eurozone, certain African, Caribbean, Asian nations …

CAD/USD=0.7852USD/CAD=1.27263
MXN/USD=0.0505USD/MXN=19.7830
JMD/USD=0.00689USD/JMD=142.187
GYD/USD=0.0047USD/GYD=204.984
BBD/USD=0.5000USD/BBD=2.0000
TTD/USD=0.1448USD/TTD=6.6571
XCD/USD=0.37037USD/XCD=2.70
GBP/USD=1.3581USD/GBP=0.73549
EUR/USD=1.2075USD/EUR=0.8275
NGN/USD=0.0026USD/NGN=380.7000
GHS/USD=0.1701USD/GHS=5.8468
ZAR/USD=0.0656USD/ZAR=15.2200
KES/USD=0.0090USD/KES=109.135
BTC/USD=36,208.0000USD/BTC=0.0000
ETH/USD=955.0000USD/ETH=0.0009
JPY/USD=0.0100USD/JPY=103.8600
CNH/USD=0.1541USD/CNH=6.4831
AUD/USD=0.7701USD/AUD=1.2980
Source: OANDA

As of 12:04 pm AST 27 November 2020, Foreign exchange rates between U.S., select countries in East Africa, West Africa, the Caribbean, and Asia, and BitCoin

As of 12:04 pm AST, 27 November 2020:

How to read the chart:

CAD/USD: If you come to the United States with one Canadian dollar (CAD)and wish to sell it for a US dollar (USD), the market price is .76870 USD.

USD/CAD: If you take a US dollar (USD) to Canada and wish to sell it for a Canadian dollar (CAD), the market price is 1.30069 CAD

CAD/USD=0.76870   USD/CAD=1.30069

CNH/USD= 0.15229   USD/CNH=6.56495

EUR/USD= 1.19144   USD/EUR=0.83922

DKK/USD =0.16007   USD/DKK=6.24556

NGN/USD= 0.00261    USD/NGN=378.872

JPY/USD=0.00959    USD/JPY=104.28

INR/USD=0.01355       USD/INR=73.7012

JMD/USD=0.00673    USD/JMD=145.545

GYD/USD=0.00469       USD/GYD= 204.941

GHS/USD=0.17070     USD/GHS= 5.83161

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00901       USD/KES= 108.870

BTC/USD= 17368.40     USD/BTC= 0.00006

Source: OANDA

Major political/legal event impacting foreign exchange

Basel Committee amends capital requirements for non-performing loan securitisations

The Basel Committee on Banking Supervision yesterday published the technical amendment Capital treatment of securitisations of non-performing loans. The rule, which the Committee started developing before the onset of the Covid-19 pandemic, closes a gap in the Basel framework by setting out prudent and risk sensitive capital requirements for non-performing loan securitisations.

The Committee consulted publicly on the technical amendment in June 2020. In contrast to the consultative proposal, the final rule permits banks to apply the external ratings-based approach to non-performing loans securitisation exposures, without the 100% risk weight floor. In addition, the final rule include discounts on tranche sales in the definition of discount incurred by the originating bank that factors in the capital requirements.

Committee jurisdictions agreed to implement the technical amendment by no later than January 2023. The Committee would like to thank all those who contributed time and effort to express their views during the consultation process.

Source: Bank of International Settlements

Foreign exchange rates between U.S. and select countries in East Africa, West Africa, the Caribbean, and Asia

As of 11:32 am EST, 6 November 2020:

How to read the chart:

CAD/USD: If you come to the United States with one Canadian dollar (CAD)and wish to sell it for a US dollar (USD), the market price is .76351 USD.

USD/CAD: If you take a US dollar (USD) to Canada and wish to sell it for a Canadian dollar (CAD), the market price is 1.30955 CAD

CAD/USD=0.76351   USD/CAD=1.30955

CNH/USD= 0.15097   USD/CNH=6.62248

EUR/USD= 1.17863    USD/EUR=0.84834

DKK/USD =0.15827     USD/DKK=6.31674

NGN/USD= 0.00260    USD/NGN=382.756

JPY/USD=0.00962       USD/JPY=103.98

INR/USD=0.01349       USD/INR=73.9934

JMD/USD=0.00678      USD/JMD=144.450

GYD/USD=0.00478       USD/GYD= 209.187

GHC/USD=0.00002       USD/GHC= 58,277.2

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00909       USD/KES= 107.789

Source: Bankrate

Major political/legal event in the United States:  Ballot counting is continuing in the U.S. presidential elections. Democratic presidential candidate Joseph R. Biden reportedly has 264 unofficial Electoral College votes while Republican candidate Donald J. Trump has 214 unofficial Electoral College votes.

The official declaration of President-Elect is scheduled for 14 December 2020.

Today, the House Republican caucus plans to meet to discuss the feasibility of President Trump’s legal strategy for turning the ballot counting tide toward him and away from Joe Biden.  A number of prominent Republicans have questioned the President’s post election tone. For example, retiring US Senator Pat Toomey, Republican of Pennsylvania, found Trump allegations of election fraud to be without evidence and Mr Trump‘s words, “disturbing.”

Source: Bloomberg