The Anglo-sphere: Foreign exchange rates of interest at 10:30 am AST

Currency Pair7 March 20228 March 20229 March 202210 March 202211 March 2022
EUR/USD1.093071.086711.08882  
GBP/USD1.322741.31631.31103  
USD/CAD1.272421.274581.28416  
AUD/USD0.737280.737320.72891  
USD/CHF0.916730.923550.9274  
Dollar Index98.7398.9498.45  
Sources: OANDA, MarketWatch

The Interbank Market News Scan: Jobs report adds to the argument that the U.S. is at full employment.

Interbank, Kazakhstan, tenge. “The Kazakh tenge KZT= weakened 2.6% to 509.70 per dollar on the interbank market on Friday, Eikon Refinitiv data showed.” See article here. Source: Nasdaq.

Interbank, China, foreign exchange. “The following are the central parity rates of the Chinese currency renminbi, or the yuan, against 24 major currencies announced on Friday by the China Foreign Exchange Trade System.” See article here. Source: Xinhuanet.

Interbank, Russia, stock market. “A Russian stock market analyst pulled out a bottle and drank to the death of Russia’s stock market during an interview live on local television. The clip went viral Thursday, a week into the Russian invasion of neighboring Ukraine and as Russia’s economy is hammered with Western sanctions.” See article here. Source: CNBC.

Interbank, blockchain, bitcoin. “Dr. Eswar Prasad, professor of Trade Policy at Cornell University and author of ‘The Future of Money: How the Digital Revolution is Transforming Currencies and Finance,’ discusses the pros and cons of Bitcoin as a currency.” See article here. Source: CNBC.

Interbank, money markets. “A closely-watched measure of money-market stress and dollar funding conditions rose again on Friday to its highest level since May 2020, as the knock-on effects of the war in Ukraine rippled out globally.” See article. Source: Reuters.

Interbank, United States, labor, jobs report. Non-farm payrolls rose by 678,000 in February while the unemployment rate fell to 3.8%. See report here. Source: U.S. Bureau of Labor Statistics.

Foreign exchange rates and dollar index as of 9:40 am AST

EUR/USD=1.10805

GBP/USD=1.33712

USD/CAD=1.26463

USD/MXN=20.6664

USD/NGN=415.42

USD/GHS=6.80185

USD/INR=75.7279

USD/JPY=115.606

USD/CNY=6.31788

USD/BTC=0.00002

Source: OANDA

Dollar Index-98.58

Source: MarketWatch

Foreign exchange rates of interest to Atlanta’s immigrant community as 6:44 am EDT …

EUR/USD=1.13684

GBP/USD=1.35643

USD/MXN=20.3469

USD/GTQ=7.52098

USD/NGN=415.318

USD/GHS=6.47201

USD/INR=74.9746

USD/XCD=2.70

USD/DOP=56.479

USD/JMD=155.725

USD/GYD=200.6

USD/BTC=0.00002

USD/ETH=0.00032

Source: OANDA

Dollar Index=95.81

Source: MarketWatch

Foreign exchange rates of interest to Atlanta’s Caribbean community as of 7:48 am EDT …

EUR/USD=1.13392

GBP/USD=1.35376

USD/CAD=1.27315

USD/TTD=6.67034

USD/JMD=155.736

USD/GYD=200.632

USD/DOP=56.6531

USD/XCD=2.70

USD/BTC=0.00002

USD/ETH=0.00033

Source: OANDA

Dollar Index=95.87

Source: MarketWatch

Interbank Market News Scan: Foreign exchange rates of interest to Atlanta’s immigrant community

EUR/USD=1.13212

GBP/USD=1.35297

USD/MXN=20.4726

USD/GTQ=7.53121

USD/NGN=415.91

USD/GHS=6.40152

USD/VND=22,724.6

USD/JPY=115.436

USD/KEW=1,196.68

USD/INR=75.4918

USD/BTC=0.00002

USD/ETH=00035

Source: OANDA

Dollar Index=96.01

Source: MarketWatch

Federal Reserve data

M2 money stock= $21,638.1 billion (December 2021)

M2 money stock change from December 2020 to December 2021: 13.1%

Effective federal funds rate: .08%

Bank prime loan rate: 3.25%

Source: Board of Governors of the Federal Reserve System

Candidates for Georgia governor should be mindful of price appreciation for yuan vs dollar.

I was curious about demand for the U.S. dollar versus the Chinese yuan in terms of the British pound, the euro, and the Indian rupee. Given the state of Georgia’s export efforts, I wanted to determine what Georgia should be keeping its eyes open for when it comes to competition between the dollar and the yuan.

Georgia’s gubernatorial campaign is heating up. It has been my experience that candidates nary make mention of export efforts. If you are going to talk about exports, you have to talk about currencies. From what I have gathered so far, only Libertarian Party candidate Shane Hazel has provided serious discussion about currencies. Democratic Party candidate Stacey Abrams and the Republican incumbent governor Brian Kemp have been pretty much mum on the topic.

Now, using data from OANDA, a look at the numbers. During the period 11 February 2021 to 11 February 2022, the price of the US dollar in terms of the British pound has appreciated two percent in price from GBP0.72283 to GBP0.73733. In terms of the euro, the dollar has appreciated six percent over the same period from EUR0.82467 to EUR0.87449. In terms of the Indian rupee, we see price appreciation of three percent from INR72.8104 to INR74.9521.

Compare the above with appreciation of the dollar price in terms of the yuan. Between 11 February 2021 and 11 February 2022, the price of the Chinese yuan in terms of the British pound rose just over three percent from GBP0.11207 to GBP0.11593. In terms of the euro, the yuan appreciated over seven percent from EUR0.12786 to EUR0.1375. Lastly, in terms of the Indian rupee, the yuan appreciated over four percent from INR11.2885 to INR11.7846.

There is a currency war brewing between China and the United States. This war tends to get mentioned in passing during broader political discussions in Washington, DC about the economic and competitive threat China poses to the United States. What gets overlooked is Europe’s political and geographic middle position. Europe has been buying less expensive technology from China; thus has a demand for Chinese currency. In addition, with the Federal Reserve preparing to hike overnight interbank lending rates as early as next month, Georgia’s exporters may be seeing an increase in the cost of doing business and may seek assistance from the state to help keep their prices competitive globally.

The candidates should be contributing to the conversation on trade, preferably encouraging policies that facilitate infrastructure investment. The conversation should begin with an appreciation for what’s happening in the currency markets.

Alton Drew

02.11.2022

Interbank Market News Scan: Indian rupee strengthens against weakening dollar; US adds 467,000 jobs …

Interbank, Indian rupee. “The rupee surged 18 paise to close at 74.70 (provisional) against the U.S. dollar on Friday tracking the weakness of the American currency in the overseas market….” See article here. Source: The Hindu

Interbank, Pakistan, remittances. “Home remittances are a major source of income for families of expatriate Pakistanis and contribute significantly in country’s economic activities. The State Bank of Pakistan together with the Government of Pakistan has introduced various policy initiatives, from time to time, to increase the flow of home remittances through formal channels …” See article here. Source: MarketScreener

Interbank, Pakistan, remittances. “In order to improve foreign exchange liquidity in the inter-bank market, the State Bank of Pakistan (SBP) and the government are now incentivising Exchange Companies (EC) to surrender 100% of home remittances against Re1 for each U.S. dollar.” See article here. Source: Business Recorder

Interbank, US Department of Labor, unemployment. “Total nonfarm payroll employment rose by 467,000 in January, and the unemployment rate was little changed at 4.0 percent. Employment growth continued in leisure and hospitality, in professional and business services, in retail trade, and in transportation and warehousing. Average hourly earnings increased 23 cents to $31.63.” See report here. Source: U.S. Bureau of Labor Statistics

Foreign exchange rates of interest as of 9:00 am EDT

EUR/USD=1.1350

GBP/USD=1.3577

USD/MXN=20.5930

USD/GTQ=7.5110

USD/NGN=415.614

USD/GHS=6.3273

USD/VND=22,646.7

USD/JPY=114.72

USD/INR=74.7056

USD/BTC=0.00003

USD/ETH=0.00038

Source: OANDA

Dollar Index: 95.64 Source: MarketWatch

Interbank Market News Scan: Foreign exchange and crypto rates of interest as 9:51 am EDT

EUR/USD=1.1294

GBP/USD=1.3550

USD/MXN=20.5450

USD/GTQ=7.5086

USD/NGN=415.203

USD/GHS=6.2762

USD/VND=22,646.7

USD/JPY=114.49

USD/INR=74.7325

USD/BTC=0.00003

USD/ETH=0.00036

Source: OANDA

MarketWatch Dollar Index: 95.53