Interbank market news scan: Asia buffs up its foreign reserves …

Foreign exchange rates as of 26 February 2021, 8:29 EST

AUS/USD : .7950

GBP/USD: 1.4113

EUR/USD: 1.2193

USD/CAD: 1.2523

USD/JPY: 106.1000

USD/MXN: 20.6400

USD/NOK: 8.3953

USD/DKK: 6.0978

Source: OANDA

Bitcoin and Ethereum rates as of 26 February 2021, 8:29 EST

BTC/USD: 49,968.1

ETH: 1,596.59

Source: OANDA

Interest rates of interest ….

Effective Federal Funds Rate: .07

Prime Rate: 3.25

Discount Window Rate: .25

Two-year Treasury: .12

Ten-year Treasury: 1.38

Thirty-year Treasury: 2.24

Source: Federal Reserve

Follow the links …

Central banks in Asia’s emerging economies added $467.7 billion to their foreign-exchange reserves last year, the most since 2013 when the region’s markets were rattled by the taper tantrum. Asia’s Central Banks Build Taper Tantrum Levels of Reserves (bloombergquint.com)

As of 10:37 am AST 11 December 2020, Foreign exchange rates between U.S., select countries in Africa, Asia, and Europe

How to read the chart:

EUR/USD: You want to buy euros (EUR) with US dollars (USD). Where the market determined exchange rate is one EUR for 1.21088 USD, you divide your dollars in hand by the exchange rate to determine the number of euros you will receive.

USD/CAD=1.27702

USD/GBP=0.75077

GBP/USD=1.33175

USD/CNH=6.53412

USD/EUR=0.82575

EUR/USD= 1.21088 

USD/DKK=6.14584

USD/NGN= 379.869  

USD/JPY=104.36

USD/INR=73.6224

USD/GHS=5.84964   

Source: OANDA

Major political/legal event impacting foreign exchange

Treasury Secretary Mnuchin addresses congressional oversight commission on CARES Act

Yesterday, U.S. Treasury Department Secretary Steven Mnuchin made the following address:

“Senator Toomey, Representative Hill, Representative Shalala, and Commissioner Ramamurti, I am pleased to join you today to discuss the Department of the Treasury’s work to execute the National Security Loan Program established in the CARES Act. Treasury has worked diligently to implement every piece of the CARES Act, including the National Security Loan Program, efficiently and transparently. 

NATIONAL SECURITY LOAN PROGRAM

The CARES Act provides funding for up to $17 billion in loans to businesses critical to maintaining national security related to losses incurred as a result of coronavirus. The CARES Act authorized Treasury to make loans and loan guarantees for “businesses critical to maintaining national security.” The statute, however, does not define that term. Therefore, after consulting with the Department of Defense and the Office of Director of National Intelligence, Treasury issued guidance on April 10, 2020, providing that a company can fall within this definition if it meets at least one of three criteria: 


If a company met at least one of the three necessary criteria, Treasury conducted detailed financial and legal reviews of each application pursuant to consistent credit standards that were applied to all applicants. 
To date, Treasury has approved 11 loans totaling nearly $736 million. Information on the companies and dollar amounts are publicly available on our website, Treasury.gov.
Many of the companies we initially expected to take part in the program were able to raise funds in the capital markets, leaving most of the available loan funds unused. Going forward, I urge Congress to re-allocate these funds to provide relief for aviation industry workers, who continue to struggle through no fault of their own. 

CONCLUSION

I would like to thank the members of the Commission for working with us to provide vital economic relief to American workers, families, and businesses. I hope that the extensive amount of information Treasury has provided to the Commission has been helpful to you, and I am pleased to answer any questions you may have.”

As of 9:36 am AST 3 December 2020, Foreign exchange rates between U.S., select countries in East Africa, West Africa, the Caribbean, and Asia, and BitCoin; Federal Reserve sees increased bank delinquencies in 2021 …

As of 9:36 am AST, 3 December 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 .77302 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 1.29344 CAD

CAD/USD=0.77302   USD/CAD=1.29344

CNH/USD= 0.15265   USD/CNH=6.54972

EUR/USD= 1.20787   USD/EUR=0.82781

DKK/USD =0.16225   USD/DKK=6.16157

NGN/USD= 0.00262   USD/NGN=377.841

JPY/USD=0.00957   USD/JPY=104.50

INR/USD=0.01357      USD/INR=73.5849

JMD/USD=0.00678    USD/JMD=144.553

GYD/USD=0.00469       USD/GYD= 204.916

GHS/USD=0.17049     USD/GHS= 5.82649

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00897      USD/KES= 109.505

BBD/USD = 0.50000     USD/BBD = 2.0000

TTD/USD = .14488         USD/TTD= 6.65179

BTC/USD= 17444.40     USD/BTC= 0.00006

Source: OANDA

Major political/legal event impacting foreign exchange

Federal Reserve releases its Beige Book finding moderate, modest US expansion

Yesterday, the Board of Governors of the Federal Reserve System released its final Beige Book for 2020.  The Federal Reserve determined that US economic expansion is either moderate or modest at best.  A number of districts, including the Philadelphia district, have observed a slow down in growth with a spike in COVID-19 cases since early November.  Banks expect the number of borrower delinquencies to increase in 2021.  

Source: Board of Governors of the Federal Reserve System