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

Interbank Market News Scan: Eastern Caribbean; Dominica issues 91-day T-bill …

Eastern Caribbean Securities Exchange

Yesterday, on the Regional Government Securities Market, the Government of the Commonwealth of Dominica issued a 91-day Treasury bill raising $20 million.  The pricing methodology used in the issue resulted in a discount rate of 3.96050%.

Today, the Government of Antigua and Barbuda is expected to auction a 180-day Treasury bill at EC$10 million at a maximum rate of 4%.

There were no trades yesterday on the Eastern Caribbean Securities Exchange.

Links to follow …

Banks. “US macro policy and, indeed, the very role of government in the economy, is undergoing its biggest shift in direction in 40 years. In turn we are concerned that it will bring about uncomfortable levels of inflation.” — Deutsche Bank. https://thehill.com/opinion/finance/557743-deutsche-bank-issues-dire-economic-warning-for-america

Banks. Overdraft fees remain a money-making machine for banks and a devastating financial gotcha for poor families and communities of color. https://www.freep.com/story/money/personal-finance/susan-tompor/2021/06/11/ally-bank-pnc-huntington-launch-overdraft-ideas-industry-criticized/7581786002/

Banks. Today the Swiss National Bank announced it’s participating in a wholesale central bank digital currency (CBDC) trial with the Banque de France, and the BIS Innovation Hub. The solution aims to use the digital Swiss Franc and digital Euro to settle cross border trades for financial instruments such as stock or bonds on a blockchain. The central banks don’t want the tests to be interpreted as a decision to launch a CBDC. https://www.ledgerinsights.com/central-banks-of-switzerland-france-in-wholesale-cbdc-trial/

Currency PairsRates as of 11:30 am AST 11 June 2021Rates as of 11 June 2020Change in rates
XCD/EUR0.30430.3259(6.6%)
XCD/GBP0.26200.2904(9.8%)
XCD/USD0.37040.3704flat
XCD/CAD0.44830.4961(9.6%)
XCD/NGN152.3700142.94006.6%
XCD/CNY2.36572.6164(9.6%)
XCD/PLN1.36081.4502(6.2%)
XCD/PEN1.429131.262313.2%

Source: OANDA

Interbank Market News Scan: Eastern Caribbean, foreign exchange …

10 June 2021

Eastern Caribbean Securities Exchange

Today, the Eastern Caribbean Securities Exchange reported that the following securities were exchanged on 9 June 2021:

800 East Caribbean Financial Holding Company Ltd shares traded at $4.00 per share, falling $.48, or 10.71%, from its previous price;

3,500 S.L. Horsford & Company Ltd shares traded at $2.00 per share with no change from yesterday’s price;

1,298 TDC shares traded at $1.25 per share, down 3.85% from its previous price; and

80 shares of Cable & Wireless St.Kitts & Nevis Ltd traded odd lot at $3.65 per share.

 On the Regional Government Securities Market, the Government of Antigua and Barbuda’s 365-day Treasury bill auction raised $10 million with a discount rate of 4.30622%.

Scheduled for today, the Government of the Commonwealth of Dominica is expected to auction 91-day Treasury bills at EC$20 million at a maximum rate of 5%.

Source: Eastern Caribbean Securities Exchange

Eastern Caribbean Central Bank

The Eastern Caribbean Central Bank recently announced that DCash, the digital version of the Eastern Caribbean dollar (EC), is set to go live in Saint Vincent and the Grenadines by the end of June.  According to the ECCB:

“The immediate objective of launching DCash in Saint Vincent and the Grenadines is to allow for the exchange of DCash for physical cash via the DCash Merchant-Teller network. These authorised entities will facilitate DCash to physical cash exchanges, thereby allowing faster, safer and cheaper cross-border person-to-person remittances. Emphasis will also be placed on establishing the DCash merchant network with focus on getting essential service providers DCash-ready. In addition, other DCash users will be able to send funds directly to users in SVG.”

Since 31 March 2021, the countries of St.Kitts-Nevis, St. Lucia, Antigua and Barbuda, and Grenada, have been using DCash.

Source: Eastern Caribbean Central Bank

European Central Bank

Today, the European Central Bank reported no change in its accommodative approach to stimulating the European economy.  The ECB will maintain the rates for its main refinancing operations at 0%; its marginal lending facility at .25%; and its deposit facility at -.50%. 

The ECB indicated in its statement that there will be acceleration of asset purchases under the Pandemic Emergency Purchase Programme (PEPP) at a total of EUR1,850 billion through March 2022.  The ECB hopes to balance purchase of assets and reinvestment of proceeds from the assets in such a way as to move as close to a two percent inflation point without exceeding that level.  Net monthly purchases under PEPP are expected to be maintained at EUR 20 billion through 2022.   

Source: European Central Bank

Foreign exchange rates of interest…. 

Source: OANDA

Currency PairsRates as of 11:30 am AST 10 June 2021Rates as of 10 June 2020Change in rates
XCD/EUR0.30400.3275(7.2%)
XCD/GBP0.26180.2915(10.2%)
XCD/USD0.37040.3704flat
XCD/CAD0.44810.4970(9.8%)
XCD/NGN152.4650143.05106.6%
XCD/CNY2.36632.6215(9.7%)
XCD/PLN1.35671.4530(6.6%)
XCD/PEN1.44281.257714.7%

Interbank Market News Scan: Eastern Caribbean, foreign exchange, remittances …

9 June 2021

Links you should follow …

Eastern Caribbean Securities Exchange.  No trades were made by the end of the trading day, 8 June 2021. https://www.ecseonline.com/wp-content/uploads/2021/06/ECSE-DAILY-TRADE-REPORT-8Jun21.pdf

Eastern Caribbean Securities Exchange. S.L. Horsford & Company Limited to hold 30th annual general meeting. https://www.ecseonline.com/wp-content/uploads/2021/05/SLH_NoticeofAGM_2021.pdf

Banks.  The St.Kitts-Nevis-Anguilla National Bank Limited to hold its 50th annual general meeting. https://www.ecseonline.com/wp-content/uploads/2021/06/3-6-21_SKNANB_Notice-of-Meeting.pdf

Remittances. Dominicans living abroad have not only sent more remittances to the country between January and April of this year when compared to the same period in 2020, with a growth of 64.8%, but they have also increased the amount by transactions. https://dominicantoday.com/dr/uncategorized/2021/06/08/dominican-republic-remittances-jump-64-8-to-april/

Foreign exchange. UK businesses which make regular overseas payments are losing out on hundreds of pounds per transaction thanks to inferior foreign exchange rates charged by Britain’s biggest banks.  https://www.thisismoney.co.uk/money/smallbusiness/article-9625805/Is-bank-ripping-business-costly-foreign-exchange-mark-ups.html

Interbank. LIBOR offered interbank rates. https://www.brecorder.com/news/40098690/libor-interbank-offered-rates

Eastern Caribbean Central Bank. DCash, the digital version of the EC dollar, is set to go live in Saint Vincent and The Grenadines by the end of June. https://www.eccb-centralbank.org/news/view/eccb-to-launch-dcash-in-saint-vincent-and-the-grenadines-in-june

Foreign exchange rates of interest…. 

Source: OANDA

Currency PairsRates as of 11:30 am AST 9 June 2021Rates as of 9 June 2020Change in rates
XCD/EUR0.30410.3279(7.3%)
XCD/GBP0.26170.2916(10.3%)
XCD/USD0.37040.3704flat
XCD/CAD0.44790.4962(9.7%)
XCD/NGN152.3500143.11806.4%
XCD/CNY2.36872.6201(9.6%)
XCD/PLN1.35781.4524(6.5%)
XCD/PEN1.44431.261714.4%

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 …

Links you should follow …

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.

Interbank Market News Scan: The Caribbean, foreign exchange, and interdealer …

Links you should follow …

Interbank. The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China’s interbank market, decreased 4 basis points to 2.187 percent Tuesday.  http://www.china.org.cn/china/Off_the_Wire/2021-06/01/content_77540607.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/AEN20210601004000320

Interbank. Chile’s peso outperformed Latin American peers on Monday as prices for the country’s top export, copper,rose on supply concerns, while the Peruvian sol fell ahead of final round presidential elections on June 6. https://www.reuters.com/article/emerging-markets-latam/emerging-markets-chiles-peso-outperforms-perus-sol-drops-ahead-of-elections-idUSL2N2NI1E4

Interdealer. Dealers saw some buying on the first day of June, perhaps motivated by the Bank of Japan not making any changes to its bond buying plan, but flows in the interdealer market were very light. With no JGB auction or BoJ bond buying operations scheduled for today, the market may be waiting for the US bond market to reopen after yesterday’s Memorial Day holiday and provide near-term direction to JGBs. https://www.nasdaq.com/articles/jpn-govts-close%3A-jgbs-do-little-all-day-interdealer-market-very-quiet-2021-06-01

Foreign exchange. China’s central bank said on Monday that it would raise the amount of money that financial institutions must set aside as reserves for their foreign exchange deposits, in the latest move to curb the yuan’s recent rapid appreciation. https://www.scmp.com/economy/china-economy/article/3135520/chinas-central-bank-moves-slow-yuans-rise-concerns-rise-over

Foreign exchange. The dollar hovered near five-month lows on Tuesday as investors waited for euro zone inflation data and a U.S. manufacturing survey, while the yuan steadied after China’s central bank took steps to limit its appreciation. https://www.cnbc.com/2021/06/01/forex-markets-dollar-us-federal-reserve-british-pound.html

Foreign exchange rates of interest: Eastern Caribbean, Guyana, Trinidad and Tobago …

Currency PairsRates as of 10:30 am AST 1 June 2021
EUR/XCD3.2959
GBP/XCD3.8319
USD/XCD2.7000
CAD/XCD2.2364
EUR/TTD8.1434
GBP/TTD9.4676
USD/TTD6.6710
CAD/TTD5.5257
EUR/GYD245.1550
GBP/GYD285.0200
USD/GYD200.8310
CAD/GYD166.3500
Source: OANDA

Interbank Market News Scan: Substantive revolution. New currency …

The Takeaway …

The only revolution of any consequence is a bottom-up revolution. I’m not talking about changing the ass that sits in a seat in an oval office or legislative branch. Under that scenario you are merely changing personalities that run problematic institutions.

Let’s face it. Most voters don’t want change. Voters are one step above an audience at the Apollo asking for the MC to bring out the hook to cart the current act of stage. That’s not change. That’s merely comic relief.

A bottom-up change means no representative government. It means getting rid of the delusion that everyone has an opportunity merely because they exist. On the contrary, bottom up means each household is forced to create their own economic value and trade it with households that generate their own independent economic value.

Whereas under the current corporate-capitalism model, a small handful of investors create a business model and hire you to conduct some limited task that expires when that handful of investors deems it expired, it is the individual household, the one that masters technology and serves the needs of other value generating households, that controls its economy by trading goods and services that it creates.

No top-down control. Bottom up and horizontal. An organic system that weeds out those whose only claim to economic fame is due to a corporation giving them a job or some government institution bailing them out in exchange for a vote.

The bottom-up system, fortunately, is already here. Nascent, yes, but emerging steadfastly and preparing to wipe out, without mercy, those who hope that whiny calls for how much their lives matter can guarantee them a few more safety pins for their diapers.

The writing has been on the wall. The ink is beginning to dry.

For the independent, “severe libertarian” types, it will be business as usual. They have always understood that building “wealth” on a phony fiat currency has never been the way to go and that leveraging a bottom-up revolution means controlling and issuing a currency that is substantive.

No. This revolution won’t be televised …. but won’t be a surprise.

Links you should follow …

Interbank. China’s interbank money market transactions shrank in April, with the transaction volume declining 22.19 percent year on year to stand at 95.5 trillion yuan (about 14.9 trillion U.S. dollars), according to the People’s Bank of China (PBOC). http://www.china.org.cn/china/Off_the_Wire/2021-05/29/content_77535245.htm

Interdealer. EU antitrust regulators on Friday fined the world’s largest interdealer broker ICAP 6.45 million euros ($7.9 million) for taking part in several yen interest rate derivatives https://www.reuters.com/article/us-eu-icap-cartel-idUSKCN2D9143

Foreign exchange. Zambia’s central bank increased the amount of foreign exchange that people can buy or sell daily in an effort to draw business away from the parallel market, Governor Christopher Mvunga said. https://www.bloomberg.com/news/articles/2021-05-27/zambia-lifts-foreign-exchange-limits-to-counter-parallel-market?sref=oriheOus

Remittances. With the rebound in economic growth, remittances to low-middle-income countries will increase 2.6 percent in 2021 to 553 billion dollars, the World Bank informed today. https://www.plenglish.com/index.php?o=rn&id=67893&SEO=global-economic-rebound-will-increase-remittances

Remittances. The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel Chairman Mian Anjum Nisar has expressed the hope that Pakistan would receive record remittance inflows of up to $29 billion this year, as the government and central bank initiatives to facilitate overseas workers have started giving positive results amidst worldwide corona epidemic challenges. https://www.brecorder.com/news/40096468/remittances-only-hope-to-support-account-balance

Banks. Tensions between Deutsche Bank and the Federal Reserve are rising.  In recent weeks, the Fed has told Deutsche Bank to address flaws in its anti-money-laundering controls, according to a report by the Wall Street Journal. https://www.msn.com/en-us/money/markets/the-fed-is-reportedly-weighing-fines-for-deutsche-bank-over-the-banks-insufficient-anti-money-laundering-controls/ar-AAKxBBT

Interbank Market News Scan: Canada sees no rush to issue a central bank digital coin …

Links you should follow ….

Foreign exchange. Luis Costa outlines commodity currencies that he is trading. This strategist outlines which currency commodities he’s trading (msn.com)

Foreign exchange. The Bank of Canada is thinking in more concrete terms about how its digital currency might look and work but it does not currently see a strong case for issuing one, a deputy governor said on Wednesday. Bank of Canada does not see currently see strong case for issuing digital currency | Nasdaq

Foreign exchange. After more than a year of slumber, investors are preparing for currency volatility to come roaring back to life. Currency FX Volatility Set for a Comeback on Looming Policy Shifts – Bloomberg

Foreign exchange. A dovish Federal Reserve and accelerating growth abroad are weighing on the dollar, a move that could be a boon for stocks and other assets. Analysis-Floundering dollar falls to bottom of global currency heap (msn.com)

Foreign exchange, cryptocurrency. ‘Bitcoin isn’t even a reliable hedge for risk-off events, let alone inflation shocks. It’s actually highly pro-cyclical…In difficult times, crypto assets don’t go up; they go down.’— Nouriel Roubini. Bitcoin isn’t a currency or financial asset, but ‘looks like a bubble’: Roubini (msn.com)

Foreign exchange rates of interest …

Changes in currency tails comprised of the euro, US dollar, and Canadian dollar and currencies out of the Eastern Caribbean, Dominican Republic, Haiti, and Jamaica remained relatively flat over the last 24 hours. Any tightening of rates on the part of major central banks is expected to have a significant impact on Caribbean currencies thus the purchasing power and cost of remittances sent back to the Caribbean.

Currency PairsRates as of 12:00 pm AST 27 May 2021Rates as of 10:45 am AST 26 May 2021
EUR/XCD3.30073.3055
USD/XCD2.70002.7000
CAD/XCD2.22492.2402
EUR/JMD182.7800181.2040
USD/JMD147.9460148.0130
CAD/JMD122.3780122.8050
USD/DOP56.479956.4454
USD/HTG88.663488.6591
Source: OANDA

Interbank Market News Scan: American bank CEOs squaring off with Senate banking committee at 10:00 am EST

Links you should follow …

Banks.  Chief executives of the six largest U.S. banks will testify in Congress Wednesday on oversight topics that include their response to the COVID-19 pandemic, diversity efforts and cryptocurrencies. CEOs of 6 biggest U.S. banks to testify in Senate about COVID-19 moves, culture – UPI.com

Central banks. New Zealand followed in the footsteps of Canada to flag a potential interest-rate increase next year as central banks begin to tip toe away from their emergency monetary settings. Slowly But Surely, Central Banks Are Signaling Policy Shifts – Bloomberg

Banks. Wells Fargo & Co. has invested in The Harbor Bank of Maryland and a Washington, D.C., institution as part of a 2020 plan to commit $50 million to Black-owned banks around the country. Wells Fargo & Co. invests in The Harbor Bank of Maryland in commitment to Black-owned banks – Baltimore Sun

Central banks. Regional Federal Reserve Banks are taking an increasingly “alarming” stance on politically charged issues like racial justice, according to Sen. Pat Toomey, a Republican from Pennsylvania who is the ranking member of the Senate Banking Committee. Wokeness at Fed’s regional banks puts central bank independence at risk | Fox Business 

Banks. Bitcoin’s price has continued to fluctuate, falling by $3,000 in a matter of hours, with big banks divided on how to approach the cryptocurrency. Bitcoin Price Rollercoaster Continues as Banks Unsure How to Approach the Crypto (msn.com)

Central banks. Eric Robertsen of Standard Chartered Bank sees some upside for commodity currencies with inflation rising. He doesn’t expect the Fed to have any “concrete announcement” on tapering before September. A few G10 central banks will ‘dial back’ bond purchasing programs later this year: Standard Chartered (msn.com) Payment systems. Commercial and central banks across the world are now using blockchain technology for payment processing and issuing of their digital currencies. The technology enables cross-border payments that are less expensive and faster as compared to traditional systems. Rapid Demand for Digital Payment Systems Being Fueled by Increasing Market Growth In Blockchain – MarketWatch

Foreign exchange rates of interest …

Currency PairsRates as of 10:45 am AST 26 May 2021
EUR/XCD3.3055
USD/XCD2.7000
CAD/XCD2.2402
EUR/JMD181.2040
USD/JMD148.0130
CAD/JMD122.8050
USD/DOP56.4454
USD/HTG88.6591
Source: OANDA