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Central banks shouldn’t try to fight climate change, as doing so could endanger financial stability and undermine their independence, a top Czech monetary official said.
Central Banks Can’t Fix Climate Change, Czech Policy Maker Says (msn.com)
The European Central Bank will pay the currency bloc’s 19 central banks 1.6 billion euros in dividends this year, down from the 2.4 billion euros it paid a year ago as its profit declined, it said in a statement on Thursday.
ECB cuts dividend payment to euro zone central banks | Nasdaq
Deutsche Bank AG scaled back plans for its bonus pool after the European Central Bank objected to proposed payout levels, highlighting the challenges of rewarding top performers while heeding demands for restraint during the global pandemic.
Deutsche Bank Cut Bonus Pool Plans After Criticism From ECB (msn.com)
Currency pairs Exchange Rate as of 4:15 pm 16 February 2021(1) As of 12:54 pm EST Exchange Rate as of 18 February 2021(2)(3) AUD/USD 0.7762 0.7779 USD/CAD 1.2694 1.2701 USD/CNY 6.4567 6.4869 EUR/USD 1.2126 1.2079 USD/INR 72.6000 72.6500 GBP/USD 1.3855 1.3948 USD/JPY 104.9400 105.7300 USD/MXN 19.9300 20.4150 USD/DKK 6.1325 6.1593 USD/NOK 8.4558 8.4637 BTC/USD 48,358.6000 ETH/USD 1,700.6400 Sources: Federal Reserve (1), Reuters-FX rates (2), OANDA-crypto rates
18 February 2021
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Naci Agbal, Turkey’s new central bank governor, began his career as a financial inspector three decades ago. He hopes such devotion to the rules will see him – and the economy – through one of the trickiest turnaround jobs in emerging markets.
NEWSMAKER-Back-to-basics Agbal hopes this time is different at Turkey’s central bank | Nasdaq
China provided medium-term funds to lenders on Thursday, giving banks some relief after its cash drainage last month triggered the country’s worst liquidity squeeze since 2015.
China Rolls Over $31 Billion in Medium-Term Loans to Banks – Bloomberg
Zambia became the second country in the world to increase its benchmark interest rate this year as it seeks to bring down “spiraling” inflation that’s at a five-year high.
Zambia Central Bank Hikes Rate to Fight Surging Inflation – Bloomberg
Weakness in both the dollar and euro is posing a dilemma for investors about which is the best source of funding for emerging-market carry trades. On balance, the U.S. currency is still first choice.
Carry Traders Clash Over Which Major Currency Has Most to Lose – Bloomberg
New York Attorney General Letitia James announced on Wednesday her office has sued to shut down Coinseed, a cryptocurrency-trading app that prosecutors allege ignored securities laws and defrauded thousands of investors.
NY AG sues to shut down crypto app Coinseed alleging it sold a worthless currency and defrauded investors (msn.com)
Economist Nouriel Roubini, known as “Dr. Doom” for his pessimistic market views, said “the Flinstones had a better monetary system than bitcoin” in an
interview with Bloomberg Wednesday morning. The NYU professor argued bitcoin and other digital tokens shouldn’t even be considered currencies because they lack many of the basic traits currencies must possess. ‘Dr. Doom’ economist Nouriel Roubini says ‘the Flintstones had a better monetary system than bitcoin’ and the token should not be considered a currency (msn.com)
Currency pairs Exchange Rate as of 4:15 pm 16 February 2021(1) As of 2:10 am EST Exchange Rate as of 18 February 2021(2)(3) AUD/USD 0.7762 0.7754 USD/CAD 1.2694 1.2699 USD/CNY 6.4567 6.4505 EUR/USD 1.2126 1.2044 USD/INR 72.6000 72.7270 GBP/USD 1.3855 1.3851 USD/JPY 104.9400 105.9000 USD/MXN 19.9300 20.2248 USD/DKK 6.1325 6.1742 USD/NOK 8.4558 8.4960 BTC/USD 48,358.6000 ETH/USD 1,700.6400 Sources: Federal Reserve (1), Reuters-FX rates (2), OANDA-Crypto rates (3)
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 pairs Exchange 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/USD 0.7656 0.7759 USD/CAD 1.2781 1.2698 USD/CNY 6.4664 6.4542 EUR/USD 1.2035 1.2102 USD/INR 72.8500 72.8160 GBP/USD 1.3714 1.3905 USD/JPY 105.4400 105.8800 USD/MXN 20.1300 20.2100 USD/DKK 6.1785 6.1383 USD/NOK 8.5428 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)
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Australia’s central bank believes it will take a significant and sustained tightening in the labor market to lift inflation to more comfortable levels, a tough task that could take years to achieve.
Australia’s central bank says tighter labor market will lift inflation (cnbc.com)
A body representing cryptocurrency and blockchain stakeholders in Nigeria has joined other crypto industry players in assailing the recent Central Bank of Nigeria (CBN) directive to banks. The CBN order, which seeks snuff out crypto entities from the banking system, took effect on February 5, 2020.
Nigeria Crypto Ban: Stakeholder Body, Politicians Assail Central Bank’s Directive to Financial Institutions – Emerging Markets Bitcoin News
Indonesia’s central bank is seen trimming its benchmark rate for the first time this year on Thursday, on top of the five rate cuts it has delivered since the start of the coronavirus pandemic, according to a majority of analysts in a Reuters poll.
Indonesia’s central bank seen making this year’s first rate cut | The Star
As cryptocurrencies increasingly go mainstream, pressure is growing on the world’s biggest central banks to move forward with their plans to issue digital cash and fend off private sector threats to traditional money.
Bitcoin’s mainstream charge raises stakes for central bank digital cash – Technology – Dunya News
Currency pairs Exchange Rate as of 4:15 pm 8 February 2021(1) As of 12:23 am EST Exchange Rate as of 16 February 2021(2)(3) AUD/USD 0.7656 0.7803 USD/CAD 1.2781 1.2619 USD/CNY 6.4664 6.4542 EUR/USD 1.2035 1.2139 USD/INR 72.8500 72.6320 GBP/USD 1.3714 1.3939 USD/JPY 105.4400 105.5800 USD/MXN 20.1300 19.9410 USD/DKK 6.1785 6.1255 USD/NOK 8.5428 8.3658 BTC/USD 45,471.7000 ETH/USD 1,683.8900 Sources: Federal Reserve (1) ; Reuters-exchange rates (2) ; OANDA-cryptocurrency (3)
16 February 2021
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Central banks in emerging economies are set to move in different directions this year: Some remain in an easing mode and are expected to lower borrowing costs further, with Bloomberg Economics predicting cuts in China, Indonesia, India and Mexico.
Emerging-Market Central Banks Are Set for a Hawkish Turn (msn.com)
Climate activists are warning that central banks are taking a “risky gamble” with their strategies for addressing the financial risks from global warming.
Central Banks Criticized for Risky Gamble on Climate Fight (msn.com)
The truth about capital flows is worth revisiting and remembering as economists, media members and politicians continue to waste so much brain space and emotion on the doings of central banks. They’re mistaken. Central banks quite simply do not matter.
Jack Ma’s Ant Group Further Exposes The Fed And Central Banks As Afterthoughts (forbes.com)
India’s foreign exchange reserves declined by $6.240 billion during the week ended February 5. According to the Reserve Bank of India’s (RBI) weekly statistical supplement, the reserves decreased to $583.945 billion from $590.185 billion reported for the week ended January 29.
India’s foreign exchange reserves plunges by over $6 bn (sify.com)
The amount of money repatriated by Filipinos abroad fell last year for the first time since 2001 as the pandemic upended the global job market.
Philippine Remittances See First Drop Since 2001 (msn.com)
The safe-haven dollar started the week near two-week lows on Monday, as optimism about COVID-19 vaccine rollouts and a planned $1.9 trillion U.S. stimulus package drove up riskier currencies and stock markets across Europe and Asia.
Dollar weakens as market optimism lifts riskier currencies | Reuters
Currency pairs Exchange Rate as of 4:15 pm 8 February 2021(1) As of 9:30 am EST Exchange Rate as of 15 February 2021(2)(3) AUD/USD 0.7656 0.7782 USD/CAD 1.2781 1.2658 USD/CNY 6.4664 6.4542 EUR/USD 1.2035 1.2123 USD/INR 72.8500 72.6140 GBP/USD 1.3714 1.3895 USD/JPY 105.4400 105.3900 USD/MXN 20.1300 19.9260 USD/DKK 6.1785 6.1259 USD/NOK 8.5428 8.4119 BTC/USD 45,583.4000 ETH/USD 1,743.7500 Sources: (1) Federal Reserve ; (2) Reuters-currency rates; (3) OANDA-crypto rates
15 February 2021
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In a sign of continued maturity as a macro asset, bitcoin now looks to be leading the price action in the foreign exchange markets (FX).
Bitcoin Starting to Lead FX Markets, Analysis of Tesla Reaction Shows: Report – CoinDesk
Group of Seven finance ministers are expected on Friday to back a new allocation of the International Monetary Fund’s own currency, or Special Drawing Rights, to help low-income countries hit by the coronavirus pandemic.
GRAPHIC-Which countries would benefit most from an IMF SDR increase (msn.com)
World shares dipped on Friday as investors awaited progress towards more U.S. fiscal stimulus, while the dollar was set for a weekly loss and cryptocurrency Bitcoin hit a record high.
World shares dip and Bitcoin hits record high – Metro US
Currency pairs Exchange Rate as of 4:15 pm 8 February 2021(1) As of 12:31 pm EST Exchange Rate as of 12 February 2021(2) AUD/USD 0.7656 0.7725 USD/CAD 1.2781 1.2694 USD/CNY 6.4664 6.4542 EUR/USD 1.2035 1.2124 USD/INR 72.8500 72.6000 GBP/USD 1.3714 1.3855 USD/JPY 105.4400 104.9500 USD/MXN 20.1300 19.9320 USD/DKK 6.1785 6.1496 USD/NOK 8.5428 8.4958 Sources: Federal Reserve (1) ; Reuters (2)
While the economic recovery around the world remains uneven, fragile, and unbalanced across sectors, financial markets are generally doing very well, thanks! In the United States, only half of the unemployment caused by the pandemic last year has been reversed, while stock markets continued to boom. Of course, this largely reflected the
extraordinary support given by monetary authorities since March last year. Central Banks and Inequality – Economic News, Analysis, and Discussion (thestreet.com)
Interest in bitcoin and other cryptocurrencies may be surging, but central banks don’t want to be left behind by financial innovation. In fact, more than 80% are examining how to launch digital versions of their own currencies.
Why central banks want to launch digital currencies (msn.com)
Mexico’s central bank on Thursday cut its benchmark interest rate for the first time since September, flagging uncertainty over the economic outlook and global efforts to tackle the COVID-19 pandemic.
Mexico Central Bank Cuts Interest Rates, Says Outlook Uncertain | Investing News | US News
Currency pairs Exchange Rate as of 4:15 pm 8 February 2021(1) As of 12:38 pm EST Exchange Rate as of 11 February 2021(2) AUD/USD 0.7656 0.7749 USD/CAD 1.2781 1.2689 USD/CNY 6.4664 6.4542 EUR/USD 1.2035 1.2121 USD/INR 72.8500 72.7080 GBP/USD 1.3714 1.3820 USD/JPY 105.4400 104.6800 USD/MXN 20.1300 19.9915 USD/DKK 6.1785 6.1327 USD/NOK 8.5428 8.4619 Sources: Federal Reserve(1) ; Reuters(2)
11 February 2021 8:41 pm EST
Banks now tackle diverse issues, be it Covid-19, climate change or inequality. Purists may disagree but there’s no other option.
Central banks aren’t what they used to be – and the better for it | Business | The Guardian
After standing shoulder-to-shoulder for much of the pandemic, traders are preparing for the day the world’s
central banks begin to move apart on policy. Traders Map Out Day When Central Banks Finally Raise Rates (msn.com)
Lawmakers in Brazil vote to grant their central bank autonomy.
Brazil passes law giving autonomy to central bank | Financial Times (ft.com)
A top Bank of Canada official called the
recent spike in cryptocurrency prices “speculative mania,” and said such assets don’t have the qualities to become the money of the future. Crypto Boom Is ‘Speculative Mania,’ Bank of Canada Deputy Says (msn.com)
Sudan’s new cabinet faces pressure to push through rapid currency reform or risk endangering its path to debt relief and to international financial support for its shaky political transition, diplomats and analysts say.
Analysis: Delay in currency reform puts donor support for Sudan at risk | Reuters
Currency pairs Exchange Rate as of 4:15 pm 8 February 2021(1) As of 3:31 am EST Exchange Rate as of 11 February 2021(2) AUD/USD 0.7656 0.7744 USD/CAD 1.2781 1.2676 USD/CNY 6.4664 6.4557 EUR/USD 1.2035 1.2124 USD/INR 72.8500 72.7700 GBP/USD 1.3714 1.3830 USD/JPY 105.4400 104.5800 USD/MXN 20.1300 19.9970 USD/DKK 6.1785 6.1332 USD/NOK 8.5428 8.4650 Sources: (1) Federal Reserve, (2) Reuters
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European Central Bank President Christine Lagarde on Wednesday said she didn’t consider bitcoin to be a real currency, adding that central banks won’t be holding it as reserve currency anytime soon. ECB president Christine Lagarde says it’s ‘very unlikely’ that central banks will hold bitcoin in the near future (msn.com)
in the country, the ban on cryptocurrency-related transactions Central Bank of Nigeria has explained why it was done. CBN boss disclosed that the digital currency is used for money laundering and terrorism. CBN explains why cryptocurrency transactions were banned (withinnigeria.com)
Kingsley Moghalu, former deputy governor of the Central Bank of Nigeria (CBN) has condemned the apex bank’s reason for stopping cryptocurrency transactions in the country. Moghalu condemns CBN’s reason for banning cryptocurrency transactions (withinnigeria.com)
On Tuesday (February 9), minister of state for finance
Anurag Singh Thakur said that a cryptocurrency bill was being finalised and it would be sent to Union Cabinet soon. Cryptocurrency bill: Here’s what you need to know (msn.com)
Are central banks on the verge of a currency war with the U.S?
Global central bank interventions raise specter of ‘currency war’ | Morningstar
“Bitcoin needs a couple more big endorsements, and that could be the key to take prices above the $50,000 level,” Edward Moya, senior market analyst for the foreign-exchange broker Oanda, wrote Tuesday.
First Mover: As Wall Street Fixates on Inflation Hedges, Good Luck Finding Bitcoin | Nasdaq
Bitcoin ‘can’t be stopped’: Nigerians Some Nigerians plan to continue using bitcoin and other cryptocurrencies despite a directive issued by the Central Bank of Nigeria last week ordering banks to close down accounts associated with cryptocurrencies. look to peer-to-peer exchanges after crypto ban. First Mover: As Wall Street Fixates on Inflation Hedges, Good Luck Finding Bitcoin | Nasdaq
Federal Reserve Board on Tuesday announced the second extension of a rule to bolster the effectiveness of the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). Like the earlier extensions, this one will temporarily modify the Board’s rules so that certain bank directors and shareholders can apply to their banks for PPP loans for their small businesses. Federal Reserve Board – Federal Reserve Board announces the second extension of a rule to bolster the effectiveness of the Small Business Administration’s Paycheck Protection Program (PPP)
Currency pairs Exchange Rate as of 4:15 pm 8 February 2021 As of 1:00 pm EST Exchange Rate as of 10 February 2021 AUD/USD 0.7656 0.7727 USD/CAD 1.2781 1.2690 USD/CNY 6.4664 6.4576 EUR/USD 1.2035 1.2134 USD/INR 72.8500 72.8500 GBP/USD 1.3714 1.3841 USD/JPY 105.4400 104.6600 USD/MXN 20.1300 20.0543 USD/DKK 6.1785 6.1317 USD/NOK 8.5428 8.4504 Sources: Federal Reserve, Reuters
10 February 2021
Currency pairs Exchange Rate as of 8 February 2021; Source: Federal Reserve As of 11:42 am EST Exchange Rate as of 9 February 2021; Source: Reuters AUD/USD 0.7656 0.7708 USD/CAD 1.2781 1.2721 USD/CNY 6.4664 6.4348 EUR/USD 1.2035 1.2093 USD/INR 72.8500 72.8420 GBP/USD 1.3714 1.3795 USD/JPY 105.4400 104.6500 USD/MXN 20.1300 20.0765 USD/DKK 6.1785 6.1502 USD/NOK 8.5428 8.4728 Sources: Federal Reserve, Reuters
In the news ….
The latest crackdown by Nigeria’s central bank on cryptocurrency has elicited
outrage and confusion in a country where virtual currency has boomed in the last five years. It’s also emblematic of the struggle by financial regulators the world over to regulate the supercharged space of digital currencies. https://qz.com/africa/1970446/nigerias-central-bank-takes-aim-at-cryptocurrency-again/
China’s central bank has downplayed its decision in January to reduce liquidity in the banking system that caused the country’s worst cash crunch in nearly six years, while fueling worries about a gradual tightening of monetary policy to curb speculation and
asset bubbles. https://www.scmp.com/economy/china-economy/article/3121179/chinas-central-bank-downplays-draining-funds-banking-system
Chinese New Year is days away and for many investors, it is the most exciting event this week, especially with a light economic calendar. It is not as big a holiday as Christmas or New Year’s, but with more than 1.5 billion celebrants, there will be less participation and possibly consolidation. Most of the major currencies traded higher on Monday as stocks hit fresh record highs. The improvement in risk appetite drove the
U.S. dollar lower across the board. https://www.investing.com/analysis/central-banks-and-stimulus-bets-will-drive-fx-this-week-200559371