Interbank Market News Scan: China is graying and will need to revamp its demographic policies ….

Links to follow today ….

Central banks, China. A pension deficit and looming debt crisis driven by a rapidly greying population. That’s the nightmare scenario for Chinese authorities, including the nation’s central bank, who are increasingly worried about the financial implications of the country’s demographic challenges. China population: what’s driving central bank concern about the nation’s ageing workforce? | South China Morning Post (scmp.com)

Central banks, CBDCs. The proposed authoritarian evolution of centrally issued digital currencies takes the world closer to dystopia. Central Bank Digital Currencies And The Orwellian New World Order | Nasdaq

Central banks, bitcoin. Billionaire investor Mike Novogratz said Thursday the surge in cryptocurrencies is serving as a referendum on the perceived ability of the Federal Reserve to manage risks facing the world’s largest economy and suggested people continue to buy into bitcoin. Billionaire investor Mike Novogratz says the record-breaking rally in crypto shows a lack of faith in the Fed – and cites central-bank uncertainty as a reason for bitcoin’s latest surge (msn.com)

Central banks, Bank of Canada. The Bank of Canada sent out a warning to investors this week that inflation still matters. In a surprise move, it accelerated the timetable for a possible interest-rate increase and began paring back its bond purchases on Wednesday. That made Canada the first major economy to signal its intent to reduce emergency levels of monetary stimulus. Inflation Forces the Bank of Canada’s Hand Ahead of Fed and ECB (msn.com)

As we enter a new week, the rates to start your day ….

As of 11:30 am EST, Bloomberg reports that the yield on the three-month Treasury note closed at 0.02% last Friday while the two-year note closed at 0.16%. The ten-year and thirty-year Treasurys closed Friday at 1.56% and 2.23%, respectively.

The Federal Funds rate, the rate at which banks lend to each other overnight in support of their reserve requirements, is at .07%, while the Fed Funds target rate is still at .25%. The prime lending rate is 3.25%.

Exchange rates of interest as of 5:30 pm EST….

Currency PairsRates as of 5:30 pm EST 25 April 2021
EUR/USD1.1890
GBP/USD1.3718
USD/CAD1.2568
AUD/USD0.7625
USD/JPY108.0210
USD/NOK8.5402
USD/CHF0.9417
USD/SEK8.7274
USD/MEX20.5078
Source: OANDA

Interbank market news scan: Should the US be concerned about falling behind the “digital currency curve?” Bitcoin, Ethereum prices fall …

News you should be following. Follow the links …

China’s rapid development of its sovereign digital currency, the so-called digital yuan, is causing the United States to worry that it could fall behind in the race for financial technology innovation, analysts said. China digital currency: US ‘worried’ as it falls ‘behind the curve’ in race for financial innovation (koreatimes.co.kr)

Trading was muted overnight while markets await the latest views from central banks. The US Federal Reserve, the Bank of Japan and the Bank of England headline a cattle call of central banks due to deliver interest rate decisions this week. Markets stall ahead of Fed | CMC Markets

The US dollar is gaining ground on the other major currencies as the foreign exchange market reacts to rising Treasury yields. The prospect of inflation continues to dominate investors’ minds, as all the conditions appear to be in place for a massive rebound in economic activity that is likely to cause consumer prices to spike. Daily market commentary: The foreign exchange market reacts to rising Treasury yields (leaprate.com)

Despite banking services becoming increasingly digital and accessible through mobile devices, there are still 1.7 billion adults without an account at a financial institution. Although The World Bank’s 2017 report confirms some improvement in this regard, only 300 million individuals succeeded in overcoming this hurdle between 2014 and 2017. At this rate, the imbalance of financial access will remain a pressing problem for some time to come. DeFi Is the New Lemonade Stand (yahoo.com)

In 2021 the modern economic landscape is already beginning to shift. The growth of cryptocurrencies and decentralized finance (DeFi) has been a part of the discussion for years, but the reality of how it will impact securities trading is finally being realized. An increasing number of securities are now digitized, underpinned by distributed ledger technology (DLT) that provides the necessary tools that allow for faster, cheaper and ultimately more secure markets, regardless of asset type. The Rise of Digital Securities | Nasdaq

Cryptocurrency exchange rates as of 11:45 pm EST 16 March 2021 …

BTC/USD=55,332.10 ETH/USD=1,767.68

BTC/EUR=46,430.60 ETH/EUR=1,482.99

BTC/GBP=39,875.10 ETH/GBP=1,273.88

BTC/AUD=71,447.80 ETH/AUD=2,282.53

BTC/CAD=68,972.00 ETH/CAD=2,203.43

BTC/CHF=51,241.80 ETH/CHF=1,637.01

BTC/JPY=6,035,080.00 ETH/JPY=192,801.00

BTC/CNY=359,694.00 ETH/CNY=11,491.10

Source: OANDA

Interbank news scan: Latest global central bank and foreign exchange news …

The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China’s interbank market, increased 6.3 basis points to 1.738 percent Friday. Source: Xinhuanet

Some of the world’s biggest banks are urging a US judge not to immediately terminate the London Interbank Offered Rate (Libor) after a group of borrowers filed suit claiming the benchmark was the work of a “price-fixing cartel.” Source: BusinessWorld

How do you wean everyone from asset managers and traders to corporate treasurers off derivatives that are so ubiquitous, they’ve become part of the fabric of the financial system? Source: Bloomberg

Data from the Central Bank of Kenya (CBK) covering the lead up to Friday showed that daily interbank rate was on a rising trend, sending the average near the 6.29 per cent that was last seen in April 2020. Source: Business Daily

On January 15th, the midpoint of RMB exchange rate in the interbank foreign exchange market is: 1 US dollar to RMB 6.4633, 1 euro to RMB 7.8549, and 100 yen to RMB 6.2263. Source: SMM News

US waits for Senate election results from Georgia; strength of US dollar against European, African currencies a mixed bag …

PairsOANDA as of 4 January 2021OANDA as of 6 January 2021Notes
USD/KES108.391108.461Dollar flat
USD/NGN384.938381.690Dollar weakening
USD/GHS5.85245.85693Dollar flat
USD/CDF1950.611950.01Dollar flat
USD/AOA648.310649.149Dollar flat
USD/ZAR14.630914.8552Dollar strengthening
Source: OANDA

Meanwhile, as the count in Georgia comes to a close, yields on longer term notes begin to increase as the Senate gets closer to a 50-50 split and the likelihood of more spending under a Biden administration ….

RatesFederal Reserve as of 4 January 2021Bloomberg as of 6 January 2021 10:30 am AST
Federal Funds Rate0.090.08
Prime Rate3.253.25
3-month Treasury0.090.08
2-year Treasury0.110.13
10-year Treasury0.931.02
30-year Treasury1.661.78
Source: Federal Reserve, OANDA

And the buzz phrase again mid-week is dollar weakening as exchange rates for a number of foreign exchange pairs continues to fall. This in light of disappointing jobs numbers from ADP where the payroll company determined that 123,000 jobs were lost in December 2020.

PairsFederal Reserve as of 4 January 2021OANDA as of 4 January 2021OANDA as of 6 January 2021 10:45 am AST
GBP/USD1.36621.36331.35967
USD/CAD1.27531.27261.27269
USD/CNH6.52506.45526.43929
USD/DKK6.08396.06576.05823
EUR/USD1.22301.22641.22774
USD/INR73.010072.936773.0696
USD/MXN19.892019.838219.9091
USD/JPY103.1900103.02102.36
USD/NOK8.57578.53008.50760
USD/SEK8.20958.20918.20299
USD/CHF0.88410.88150.87959
Source: OANDA

Foreign exchange rates. Dollar continues its fall …

Foreign exchange rates of interest as of 9 December 2020, 5:30 pm AST:

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 .78113 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 1.28002 CAD

INR/USD = 0.01356 USD/INR=73.6386

CAD/USD= 0.78113 USD/CAD= 1.28002

JMD/USD= 0.00682 USD/JMD = 143.631

EUR/USD= 1.21122 USD/EUR = 0.82552

NGN/USD= 0.00260 USD/NGN = 379.723

CNH/USD= 0.15338 USD/CNH = 6.51859

JPY/USD = 0.00961 USD/JPY = 104.09

Source: OANDA

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The foreign exchange environment for Trinidad and Tobago …

As of 12:37 pm AST, here are foreign exchange rates for countries trading commodities with Trinidad and Tobago.

How to read the chart:

USD/TTD: If you come to Trinidad and Tobago with one United States dollar (USD) and wish to sell it for a Trinidad and Tobago dollar (TTD), the market price is 6.65560 TTD.

USD/CAD: If you take a Trinidad and Tobago dollar (TTD) to the United States and wish to sell it for a United States dollar(USD), the market price is 0.14482 USD.

Trinidad and Tobago exports 34.8% of its commodities to the United States and 9% to Argentina. Almost 24% of its imports are from the U.S. followed by Russia (15.3%), Columbia (11.1%), and Gabon (10.5%).

USD/TTD=6.65560 TTD/USD=0.14482

ARS/TTD=0.08165 TTD/ARS=11.8034

RUS/TTD=0.0889 TTD/RUS=10.8354

COL/TTD=0.00190 TTD/COL=505.772

XAF/TTD=0.01231 TTD/XAF=78.2939

CNH/TTD=1.01748 TTD/CNH=0.94712

11:02 pm 15 November 2020, Foreign exchange rates between U.S. and select countries in East Africa, West Africa, the Caribbean, and Asia

As of 11:02 pm EST, 15 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 .76105 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 1.31301 CAD

CAD/USD=0.76105   USD/CAD=1.31301

CNH/USD= 0.15159   USD/CNH=6.59332

EUR/USD= 1.18326   USD/EUR=0.84472

DKK/USD =0.15884     USD/DKK=6.29161

NGN/USD= 0.00261    USD/NGN=377.495

JPY/USD=0.00955      USD/JPY=104.59

INR/USD=0.01340       USD/INR=74.3780

JMD/USD=0.00672     USD/JMD=145.859

GYD/USD=0.00469       USD/GYD= 204.822

GHS/USD=0.17046     USD/GHS= 5.81740

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00909       USD/KES= 108.341

Source: OANDA

Major political/legal event in the United States

Reuters reporting that President Donald J. Trump has yet to concede the presidential election to presumptive president-elect Joseph R. Biden.  Over the weekend President Trump appeared to conceded the election to the former vice-president but has since backtracked vowing to continue on with a number of state court challenges to the election.

Source: Reuters

10:37 am 13 November 2020, Foreign exchange rates between U.S. and select countries in East Africa, West Africa, the Caribbean, and Asia

As of 10:37 am EST, 13 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 .76327 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 1.30996 CAD

CAD/USD=0.76327   USD/CAD=1.30996

CNH/USD= 0.15112   USD/CNH=6.61616

EUR/USD= 1.17938   USD/EUR=0.84780

DKK/USD =0.15838     USD/DKK=6.31214

NGN/USD= 0.00262    USD/NGN=380.053

JPY/USD=0.00950      USD/JPY=105.23

INR/USD=0.01340       USD/INR=74.4783

JMD/USD=0.00671     USD/JMD=145.880

GYD/USD=0.00469       USD/GYD= 204.829

GHS/USD=0.17098     USD/GHS= 5.81812

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00909       USD/KES= 108.088

Source: OANDA

Major political/legal event in the United States

Yesterday in attempt to address attacks on American national security, President Donald J. Trump issued an executive order prohibiting transactions in publicly traded securities of Chinese military companies.  President Trump argues that capital raised via transactions in the securities of these companies is eventually channeled into financing improvements in Chinese military intelligence gathering.

Source:  Executive Office of the President

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

Update: Dollar continues depreciation against a number of currencies in face of more elections legal action by President Trump

As of 8:21 pm EST, 5 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

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 Board of Governors of the Federal Reserve System decided to maintain its target range for its inter-bank rate between 0 and .25%.

Also, today, President Donald J. Trump held a press conference expressing concern about how ballots were being counted in a number of states.  He indicated that he was prepared to pursue legal action to ensure that ballot counts were conducted in a fair and transparent manner.

Source: Bloomberg, Federal Reserve