Interbank Market News Scan: The Caribbean, foreign exchange …

25 June 2021

Eastern Caribbean Central Bank-interest rates

ECCB Fixed Deposit Rate-1 month0%
ECCB Fixed Deposit Rate-2 months0%
ECCB Fixed Deposit Rate-3 months0%
*ECCU Minimum Savings Deposit Rate2%
ECCB Discount Rate2%
Source: Eastern Caribbean Central Bank

*Eastern Caribbean Currency Union

Foreign exchange rates of interest

Where base currency is XCDRates as of 1:03 am AST 25 June 2021Where term currency is XCDRates as of 1:03 am AST 25 June 2021
XCD/EUR0.3104EUR/XCD3.2216
XCD/GBP0.2657GBP/XCD3.7634
XCD/USD0.3704USD/XCD2.7000
XCD/CAD0.4559CAD/XCD2.1932
XCD/NGN152.1620NGN/XCD0.0066
XCD/CNY2.3963CNY/XCD0.4169
XCD/PLN1.4038PLN/XCD0.7118
XCD/PEN1.4613PEN/XCD0.6723
Source: OANDA

Eastern Caribbean Central Bank.  The Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC) announces two new products aimed at helping regional Micro, Small and Medium Enterprises (MSMEs) rebound and grow their businesses. https://www.eccb-centralbank.org/news/view/ecpcgc-offers-additional-products-to-help-small-businesses

Federal Reserve. The Federal Reserve Board on Thursday released the results of its annual bank stress tests, which showed that large banks continue to have strong capital levels and could continue lending to households and businesses during a severe recession. https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210624a.htm

Foreign exchange. Chinese banks’ stockpile of foreign-currency deposits has surpassed $1 trillion for the first time, creating an opportunity for Beijing to allow greater freedom for capital to flow out of the country. https://www.bloomberg.com/news/articles/2021-06-24/chinese-banks-stockpile-record-1-trillion-of-foreign-currencies?sref=oriheOus

Foreign exchange. The EU is unlikely to grant U.K.-based financial firms automatic market access in all areas post-Brexit, according to a top British minister. https://www.bloomberg.com/news/articles/2021-06-24/u-k-says-equivalence-with-eu-unlikely-in-all-areas-of-finance?sref=oriheOus

Interbank. China’s interbank treasury bond index in net price opened at 985.08 points Friday, higher than the previous close of 984.84 points, according to the China Foreign Exchange Trade System. http://www.china.org.cn/china/Off_the_Wire/2021-06/25/content_77586945.htm

Interbank Market News Scan: Eastern Caribbean, foreign exchange …

24 June 2021

Eastern Caribbean Central Bank-interest rates

ECCB Fixed Deposit Rate-1 month0%
ECCB Fixed Deposit Rate-2 months0%
ECCB Fixed Deposit Rate-3 months0%
ECCU (1) Minimum Savings Deposit Rate2%
ECCB Discount Rate2%
Source: Eastern Caribbean Central Bank
  • (1) Eastern Caribbean Currency Union

Foreign exchange rates of interest

Where base currency is XCDRates as of 1:15 am AST 24 June 2021Where term currency is XCDRates as of 1:30 am AST 24 June 2021
XCD/EUR0.3103EUR/XCD3.2222
XCD/GBP0.2653GBP/XCD3.7689
XCD/USD0.3704USD/XCD2.7000
XCD/CAD0.4556CAD/XCD2.1946
XCD/NGN151.8860NGN/XCD0.0066
XCD/CNY2.3986CNY/XCD0.4168
XCD/PLN1.4026PLN/XCD0.7122
XCD/PEN1.4509PEN/XCD0.6771
Source: OANDA

Foreign exchange. On 26 May 2021, the Cabinet of Ministers of Ukraine adopted the Resolution adopted a Resolution setting out the procedure the tax authority should use to fine legal entities for violating currency legislation. https://www.lexology.com/library/detail.aspx?g=b6a6e9df-ddaa-49c7-821a-355d5b0cf097

Foreign exchange. The U.S. dollar vacillated below an 11-week high versus major peers on Thursday as traders attempted to navigate conflicting signals from Federal Reserve officials on the timing of a withdrawal of monetary stimulus. https://www.cnbc.com/2021/06/24/forex-markets-dollar-us-federal-reserve.html

Interbank. Flour millers in Nigeria are turning to the street market for dollars to buy wheat after the central bank restricted the use of the U.S. currency to buy grain imports, according to the country’s third-largest operator. https://www.bloomberg.com/news/articles/2021-06-23/nigeria-flour-millers-squeezed-by-central-bank-ban-on-imports?sref=oriheOus

Interbank. The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China‘s interbank market, decreased 9.3 basis points to 2.208 percent Wednesday. http://www.china.org.cn/china/Off_the_Wire/2021-06/23/content_77581796.htm Interbank. China’s central bank boosted its short-term cash injection for the first time since March as it sought to cater to a growing demand for liquidity while keeping leverage in check. https://www.bloomberg.com/news/articles/2021-06-24/china-lifts-short-term-cash-injection-for-first-time-since-march?sref=oriheOus

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 at 2:45 pm GMT

Links you should follow …

Interbank, interdealer. Interbank trading activity accounted for more than 80% of the US$3.1trn in interest-rate derivatives that left the UK for the US and the European Union in the wake of Brexit, according to IFR calculations using IHS Markit data. Interbank trading drives post-Brexit swap migration | IFR (ifre.com)

Interbank, interdealer. Paul Houston, Global Head of FX Products, CME Group, recently caught up with Traders Magazine to discuss the drivers causing change in the FX derivatives market, what CME Group has been doing to alleviate the pain points from these changes, and the exchange’s future plans.  FX Futures and Options Innovation in Focus – Traders Magazine

Interbank, interdealer. US exchange group ICE has invested in FinTech and municipal bond network BondLink to develop infrastructure servicing in the $4 trillion market. ICE invests in US municipal bond network BondLink (thetradenews.com)

Interbank, 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. Market exchange rates in China — May 24 – China.org.cn Interbank, Pakistan. The Pakistani rupee depreciated 34 paisas against the United States (US) dollar in the interbank currency market on Monday. Rupee weakens against US dollar (arynews.tv)

Foreign exchange rates of interest …

Currency PairsRates as of 2:45 pm GMT 24 May 2021Rates as of 1:43 pm GMT 21 May 2021
GHS/EUR0.14150.1417
GMD/EUR0.01590.0159
NGN/EUR0.00200.0020
SLL/EUR0.00010.0001
KES/EUR0.00770.0075
RWF/EUR0.00080.0008
ZAR/EUR0.05870.0584
MZN/EUR0.01360.0136
XCD/EUR0.30400.3035
Source: OANDA

Interbank market news scan: Foreign exchange markets preparing for U.S. jobs situation report…

March’s Nonfarm Payrolls report, which is due out on Friday at 12:30 GMT, is set to show an increase of 630,000 jobs. Here you can find the forecasts of economists and researchers of eight major banks regarding the upcoming employment data. Nonfarm Payrolls Preview: Forecast from eight major banks for March jobs report (fxstreet.com)

The U.S. dollar will remain strong for at least another month, according to a Reuters poll of foreign exchange strategists, who still forecast that the currency will weaken in the longer term. U.S. Dollar to Remain Strong for at Least Another Month: Reuters Poll | Investing News | US News

Currency PairsRates as of 2:15pm 1 April 2021
EUR/USD1.1775
AUD/USD0.7607
GBP/USD1.3824
USD/JPY110.5800
NZD/USD0.7021
USD/CHF0.9413
USD/NOK8.5295
USD/SEK8.7090
USD/CAD1.2565
  
Selected Rates 
Fed Funds.07
Bank prime rate3.25
Discount window.25
2-yr Treasury.16
10-yr Treasury1.68
30-yr2.34
Source: Bloomberg, Federal Reserve, Reuters

Interbank market news scan: Archegos Capital is the management firm that banks are watching this morning …

Banks. Shares of Europe’s largest banks dropped on Monday after extending credit to a major client that couldn’t meet its obligations. Banks tumble after U.S. fund wilts (msn.com)

Banks. U.S. stock futures edged lower Monday after a large investment fund unwound billions of dollars in holdings, triggering concerns that stocks in the portfolio and banks who dealt with the firm could face sharp losses. Stock Futures Drop as Banks Warn of Losses | Fox Business

Banks. Swiss financial watchdog FINMA said on Monday it has been informed by Credit Suisse CSGN.S about its involvement in an international hedge-fund case involving several banks. Swiss watchdog says several banks involved in hedge-fund case | Nasdaq

Federal Reserve. Federal Reserve governor Christopher J. Waller addresses the importance of Federal Reserve independence this morning at 11:00 EST. Federal Reserve Board – Calendar

Federal Reserve. The Federal Reserve releases data on foreign exchange rates and selected interest rates today at 4:15 pm EST. Federal Reserve Board – Calendar

Currency pair29 March 2021 7:18am
EUR/USD1.770
AUD/USD0.7648
GBP/USD1.3832
USD/JPY109.5600
NZD/USD0.6997
USD/CHF0.9395
USD/NOK8.5782
USD/SEK8.6867
USD/CAD1.2592

Interbank market scan: China’s interbank market rate drops; Bitcoin sees a little deceleration …

Links to news you should be following …

India’s foreign-exchange reserves surpassed Russia’s to become the world’s fourth largest, as the South Asian nation’s central bank continues to hoard dollars to cushion the economy against any sudden outflows. India FX Reserves Cross Russia to Become World’s 4th Biggest – Bloomberg

Currency tensions and currency crises are a side effect of many countries failing to manage in the new round of economic globalization that has taken place through increasing flows of multilateral trade and investments that have created a world of currency trades causing economies to depend on global reserve currencies, mainly the US Dollar. Science against Myth (msn.com)

During the past month, the total value locked (TVL) in the Bancor Protocol has more than doubled, surpassing the $1.6 billion mark. Bancor, which serves as a liquidity protocol that enables automated, decentralized exchange, reveals that it managed to break into the top 10 projects in terms of TVL and now generates “the fifth highest revenue” of any protocol on Ethereum (as of March 13, 2021). decentralized finance – Bing News

To add more value to the network’s end-users and keep FinNexus at the industry’s cutting edge, its team has been working extremely hard to introduce new features. FinNexus has been developing its ecosystem on all fronts, expanding an established partnership with ChainLink, striving to add a new decentralized product, and introducing an algorithmic stablecoin-based liquidity pool to its platform.  FinNexus developments take its decentralized options platform to the next level | KnowTechie

The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China’s interbank market, fell 10.5 basis points to 2.14 percent Tuesday.China’s overnight Shibor interbank rate falls Tuesday – Xinhua | English.news.cn (xinhuanet.com)

Cryptocurrency exchange rates as of 8:35 am EST …

BTC/USD=57,494.80 ETH/USD=1,792.44

BTC/EUR=48,177.40 ETH/EUR=1,501.96

BTC/GBP=41,325.00 ETH/GBP=1,288.34

BTC/AUD=74,221.30 ETH/AUD=2,313.90

BTC/CAD=71,715.70 ETH/CAD=2,235.79

BTC/CHF=53,398.50 ETH/CHF=1,664.74

BTC/JPY=6,274,470.00 ETH/JPY=195,611.00

BTC/CNY=373,759.00 ETH/CNY=11,652.20

Source: OANDA

Interbank market news scan: Digital currency won’t replicate cash characteristics …

It would be misguided to expect cash-like features of a central bank digital currency, according to one of the monetary authorities furthest ahead in exploring such a system. Central Bank Digital Money Won’t Replicate Cash, Sweden’s Riksbank Says (msn.com)

Fluency, the UK-based fintech created by Polish emigrants, plans to sell its cryptocurrency banking business and focus on working with central banks’ digital currency efforts, newspaper Puls Biznesu reported on February 15. bne IntelliNews – Polish-UK fintech Fluency to focus on central banks’ digital currency

Democratic Republic of Congo’s economy grew 0.8% in 2020 on the back of strong performance in its mining sector, and is projected to grow 3.2% this year, a central bank advisor said on Tuesday. Congo’s economy grew 0.8% in 2020, to rise 3.2% this year, says central bank | Reuters

Bank of Governor Haruhiko Kuroda said on Tuesday the recent stock price rally reflected market optimism over the global economic outlook, brushing aside views its ultra-loose monetary policy was fueling an asset price bubble. BOJ’s Kuroda says stock boom reflects economic optimism, defends ETF scheme (cnbc.com)

With global demand returning and supply bottlenecks likely to drive up shipping, food and energy prices, Bank of America believes emerging market inflation could be on the horizon. BofA recommended buying currencies backed by hawkish central banks or a robust balance of payments — namely the Brazilian real, Chinese yuan, Czech koruna and South Korean won — along with oil exporters, most notably the Russian rouble and Russian equities. Bank of America names the emerging market currencies to back as inflation risks mount (cnbc.com)

Currency pairsExchange Rate as of 4:15 pm 8 February 2021(1) As of 12:36 pm EST Exchange Rate as of 16 February 2021(2)(3)
AUD/USD0.7656 0.7759
USD/CAD1.2781 1.2698
USD/CNY6.4664 6.4542
EUR/USD1.2035 1.2102
USD/INR72.8500 72.8160
GBP/USD1.3714 1.3905
USD/JPY105.4400 105.8800
USD/MXN20.1300 20.2100
USD/DKK6.1785 6.1383
USD/NOK8.5428 8.4407
BTC/USD  45,471.7000
ETH/USD  1,683.8900
Sources: Federal Reserve (1) ; Reuters-foreign exchange rates (2); OANDA-crypto rates (3)

Interbank market scan as of 11:03 am AST: Central banks, foreign exchange

Currency pairsExchange Rate as of 11:07am AST 28 January 2021Exchange Rate as of 12:10 pm AST 29 January 2021
AUD/USD0.76810.7695
USD/CAD1.27741.2766
USD/CNY6.48226.4291
EUR/USD1.21181.2148
USD/INR73.050072.8335
GBP/USD1.37151.3722
USD/JPY104.0600104.7100
USD/MXN20.700020.2232
USD/DKK6.15546.1206
USD/NOK8.62428.5291
Source: Reuters

The Chinese yuan exhibited increased strength against the U.S. dollar. This may be due in part to decision of the People’s Bank of China to be more hawkish on interest rates and modifying the interbank market rate of the yuan to reflect tightening liquidity. (See links to two articles below).

News from the federal government …

Yesterday, the White House released the following statement addressing a call between members of the National Security Council and the European Commission:

“National Security Advisor Jake Sullivan spoke by phone today with European Commission President Ursula von der Leyen’s Head of Cabinet Bjoern Seibert. Mr. Sullivan underscored President Biden’s commitment to the transatlantic alliance and his intention to repair and revitalize the U.S.-EU partnership, including our trade and investment relationship. They discussed the importance of close U.S.-EU cooperation on the COVID-19 pandemic and global health security, as well as the global economic recovery and climate change. They also agreed to work together on issues of mutual concern, including China and Turkey.”

In other news: The markets ….

Julian Evans-Pritchard, Senior China Economist at Capital Economics suggests that the People Bank of China (PBOC) could be delivering a hawkish signal, in light of the recent surge in the interbank rates. PBOC: Surge in interbank rates is a hawkish signal – Capital Economics (fxstreet.com)

China’s yuan firmed on Thursday, as tight interbank liquidity heading into Lunar New Year pushed money markets rates higher, though gains were limited as a global stock market rout increased safe-harbour demand for assets like the dollar. China’s yuan inches up as tight liquidity pushes interbank rates higher | Nasdaq

Sweden’s central bank said it had agreed with the U.S. Federal Reserve to extend a $60 billion swap agreement signed during spring last year until Sept. 30 this year. Sweden’s Central Bank Extends Swap Arrangement With U.S. Federal Reserve | Investing News | US News

Bank of America was ringing alarm bells over equities on Friday, as it warned a correction is looming. Get ready for a 10% stock drop, driven by the 3 ‘Rs,’ warns Bank of America (msn.com)

The Central Bank of Nigeria plans to obtain all the necessary approvals required to start the operations of a proposed commodities exchange within the next 90 days, Governor Godwin Emefiele said on Thursday. Nigeria Commodities Exchange to Start in 90 Days to Help Stabilize Food Prices – Bloomberg

The value of Dogecoin, a joke cryptocurrency that launched back in 2013, hit record levels on Thursday. Its price rose by more than 800 percent, reaching around $0.082, which raised its market value to around $7 billion, according to Coindesk, which monitors cryptocurrency prices. Dogecoin Price Tracker, Update as Cryptocurrency Value Skyrockets (msn.com)

Robinhood has restricted trading in cryptocurrencies a day after blocking new purchases of 13 stocks amid “extraordinary market conditions,” the app said. Robinhood Blocks Cryptocurrency Trading, Blames ‘Extraordinary Market Conditions’ (msn.com)

“Guys,” he told them, “I don’t know if bitcoin goes lower next month, but I think over the course of time, bitcoin will be higher.” To be more exact, Denier predicts the cryptocurrency will surge to $US55,000 per coin by the end of 2021, a 70% increase from its current price of around $US32,200. Webull CEO Anthony Denier predicts Bitcoin will surge to $55,000 by the end of 2021. He told us why he’s bullish on the cryptocurrency long-term. (msn.com)