Business News
EUR/USD=1.13649
GBP/USD=1.36048
USD/CAD=1.27003
USD/INR=74.9424
USD/NGN=415.459
USD/GHS=6.44983
USD/DOP=56.2751
USD/JMD=155.493
USD/GYD=200.426
USD/TTD=6.65983
USD/XCD=2.70
USD/BTC=0.00002
USD/ETH=0.00033
Source: OANDA
Dollar Index=95.81
Source: MarketWatch
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
Interbank. Why do market-makers provide high leverage? Given that a high percentage of forex traders lose money, do these brokers take advantage of traders’ risk? Or do brokers pass the orders to the interbank network and make money off of spreads? Here are a few answers. https://www.fxstreet.com/education/are-market-making-brokers-taking-advantage-of-high-leverage-answers-to-painful-questions-202201181529 Source: FXStreet.
Interbank, Ghana. As expected, the Monetary Policy Committee of the Bank of Ghana has kept the policy rate at 14.5%. https://www.myjoyonline.com/policy-rate-kept-unchanged-at-14-5-interest-rates-record-mixed-trends/ Source: MyJoyOnline.
Interbank, U.S. Treasury. The U.S. Department of the Treasury announces marketable borrowing estimates. https://home.treasury.gov/news/press-releases/jy0575.
Interbank, U.S. Treasury. Benjamin Harris, Treasury Department assistant secretary, issues statement on U.S. economic status and expectations. https://home.treasury.gov/news/press-releases/jy0574.
Foreign exchange rates of interest
EUR/USD=1.1187
GBP/USD=1.3429
USD/MXN=20.7222
USD/GTQ=7.5034
USD/NGN=415.212
USD/GHS=6.2370
USD/VND=22,646.7
USD/JPY=115.32
USD/INR=74.7022
Source: OANDA
Interbank, India, rupee. The rupee surged 45 paise to close at 74.62 (provisional) against the U.S. dollar on January 31 supported by positive domestic equities and improved risk appetite. Source: The Hindu. https://www.thehindu.com/business/markets/rupee-jumps-45-paise-to-close-at-7462-against-us-dollar/article38353579.ece
Interbank, Ukraine. The National Bank of Ukraine (NBU) has recorded a decline in currency demand on the interbank foreign exchange market last Friday, according to a press release issued by the central bank, Ukrinform reports. Source: Ukrinform. https://www.ukrinform.net/rubric-economy/3394687-nbu-records-decrease-in-currency-demand-on-interbank-market.html
Interbank, Bank for International Settlements. Eddie Yue makes argument for closing the trade finance gap with better connectivity between digital finance platforms. Source: Bank for International Settlements. https://www.bis.org/review/r220126a.htm
Foreign exchange rates of interest to Atlanta
EUR/USD=1.1148
GBP/USD=1.3398
USD/MXN=20.7989
USD/GTQ=7.5066
USD/NGN=415.160
USD/GHS=6.2239
USD/VND=22,645.0
USD/JPY=115.23
USD/INR=74.9150
USD/BTC=0.00003
USD/ETH=0.00039
Source: OANDA
MarketWatch Dollar Index=96.92
Bank of International Settlements. Today, the Bank of International Settlements released a paper on virtual banking providing insights on the use of information capital as a substitute for tangible capital. The paper argues that information capital, comprised of an enterprise’s or individual’s digital data footprint, can be used as collateral for obtaining credit, thus increasing access to credit by small and medium businesses and low income individuals.
While the paper uses the Hong Kong market as a case study, I believe that if US-based banks and fintechs embarked on the same initiative, the following legal issues may arise. Can information capital be used as collateral when borrowing for the purpose of purchasing foreign currencies? Does the use of information capital raise discrimination issues where biases are embeded in the artificial intelligence programming? Are existing laws sufficient for protecting enterprise or individual data privacy where such data is encompassed in information capital used as collateral?
The link to the BIS paper can be found here.
Federal Reserve Bank of New York. Yesterday after the Board of Governors of the Federal Reserve announced that it would hold its interbank rate for overnight lending between 0 and .25%, the Federal Reserve Bank of New York announced that the reserve bank’s Open Market Trading Desk would increase its System Open Market Account holding of Treasury securities by at least $20 billion per month and its agency mortgage-backed securities by at least $10 billion per month. This reduced level of purchasing (down from a combined high of $120 billion per month at the beginning of the pandemic) will commence on 14 February 2022.
The link to the New York Fed’s announcement can be found here.
Interbank Market, Pakistan. The rupee held steady against the dollar at Rs176.98 but has been depreciating in value since 1 July 2021. See link to article here.
Foreign exchange rates as of 10:00 am EDT
EUR/USD=1.1282
GBP/USD=1.3500
USD/MXN=20.6258
USD/GTQ=7.5060
USD/NGN=414.7010
USD/GHS=6.1790
USD/VND=22,632.2000
USD/JPY=114.1900
USD/INR=74.8041
USD/BTC=0.00003
USD/ETH=0.00039
Source: OANDA
EUR/USD=1.1296
GBP/USD=1.3483
USD/MXN=20.6354
USD/GTQ=7.5185
USD/NGN=414.7150
USD/GHS=6.1835
USD/VND=22,640.4000
USD/JPY=113.8900
USD/INR=74.6339
USD/BTC=0.00003
USD/ETH=0.00041
Source: OANDA
EUR/USD= 1.1321
GBP/USD= 1.3508
USD/MXN= 20.5328
USD/GTQ= 7.5281
USD/NGN= 414.8780
USD/GHS= 6.2033
USD/VND= 22,664.2000
USD/JPY= 113.8100
USD/INR= 74.4818
Source: OANDA
9 July 2021
Foreign exchange rates of interest …
| Currency pair | Exchange rate |
| USD/XCD | XCD 2.70 |
| USD/MXN | MXN 20.0188 |
| USD/JMD | JMD 148.6230 |
| USD/DOP | DOP 56.6164 |
| USD/HTG | HTG 92.0194 |
| USD/NGN | NGN 411.2120 |
| USD/GHS | GHS 5.9153 |
News links of interest …
Interbank. With the end near for the London Interbank Offered Rate (Libor), the Reserve Bank of India (RBI) on Thursday told banks and other financial institutions to stop using the benchmark as soon as possible and mandatorily by December 31 and move to any Alternative Reference Rates (ARR). https://www.business-standard.com/article/finance/rbi-to-banks-phase-out-libor-soon-move-to-alternative-reference-rates-121070900016_1.html
Interbank. The booming collateralized loan obligation market faces a chaotic end to 2021, when the benchmark London interbank offered rate is retired for new loan contracts. https://www.bloomberg.com/news/articles/2021-07-08/growing-clo-market-has-a-libor-transition-problem-on-horizon?sref=oriheOus Interbank. Sri Lanka’s central bank said it will dip into its foreign exchange reserves to partly repay $1 billion of bonds maturing later this month, seeking to allay investors’ concern about a possible default. https://www.bloomberg.com/news/articles/2021-07-08/sri-lanka-keeps-rate-on-hold-as-focus-shifts-to-debt-repayment?sref=oriheOus
Foreign exchange, China. 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: Market exchange rates in China — July 9 – Xinhua | English.news.cn (xinhuanet.com)
Foreign exchange. Could the RMB dislodge the dollar as the world’s reserve currency. Could the RMB Dislodge the Dollar As a Reserve Currency? – BRINK – Conversations and Insights on Global Business (brinknews.com)
Cryptocurrency. Why China wants to undermine Bitcoin. Currency and control: why China wants to undermine bitcoin (msn.com)
Cryptocurrency. The future is far from stateless. Cryptocurrencies’ dream of escaping the global financial system is crumbling | Quinn Slobodian | The Guardian
Foreign exchange rates of interest…
| Currency Pairs | Rates as of 8:13 am EST 17 May 2021 |
| USD/AOA | 652.8280 |
| USD/GMD | 50.9478 |
| USD/GHS | 5.7535 |
| USD/NGN | 379.9410 |
| USD/KES | 108.0900 |
| USD/SLL | 10134.0000 |
| USD/RWF | 979.3480 |
| USD/ZAR | 14.1119 |
| USD/MZN | 58.3200 |
Links to follow …
Remittances. According to the bank’s latest Migration and Development Brief, officially recorded remittance flows to low- and middle-income countries reached US$540 billion in 2020, 1.6 per cent below the 2019 total of US$548 billion. Remittance flows remained strong during COVID-19 in 2020, says World Bank (jamaicaobserver.com)
Remittances, Philippines. Remittances continued to grow in March as more countries eased travel restrictions and reopened borders to foreign workers, the Bangko Sentral ng Pilipinas (BSP) reported Monday. Remittances up 4.9% in March (msn.com)
Remittances, Ghana. Remittances from Ghanaians grew by five per cent from $3.39 billion in 2019 to $5.57 billion in 2020, a World Bank report has said.
This was in spite of the grim economic outlook presented by the COVID-19 pandemic, which affected people’s earnings and the economies of nations worldwide last year. Remittances From Ghanaians Abroad Increase | Social | Peacefmonline.com
Remittances, Nigeria. Pan-African credit rating agency, Agusto & Co has projected that Nigeria’s diaspora remittances will reach $22 billion by 2021, representing a year-on-year (y-o-y) rise of five per cent. Agusto & Co Forecasts $22bn Diaspora Remittances for Nigeria in 2021 | THISDAYLIVE
Remittances, Kenya. Kenya is targetting to collect at least Sh700 billion from over four million Kenyans working abroad, Labour Cabinet Secretary Simon Chelugui has said. Kenya targets Sh700 billion in diaspora remittances annually (the-star.co.ke)
Ghana‘s demand for the US dollar appears to have fallen last week. According to data from OANDA, a foreign exchange brokerage, during the period 1 December to 5 December 2020, the Ghana price of a dollar fell from 5.8456 GHS to 5.8280 GHS (-0.301%).
The Ghana price for the Euro climbed from 7.0123 GHS to 7.0631 GHS (0.724%) between 1 December and 5 December. During the same period, the Ghana price of the British pound also increased 0.106% from 7.8194 GHS to 7.8277 GHS. In addition, the Ghana price of the Chinese yuan (offshore) increased 0.356% from 0.8908 GHS to .8940 GHS.
The Bank of Ghana, the nation’s central bank, reported on 4 December 2020 a mid-range interbank rate for the US dollar of 5.7142 GHS. The interbank rate for the Euro came in at 6.9409 GHS while the interbank rate for the British pound chimed in at 7.7082 GHS.
Ghana’s current policy rate is 14.50%, with an inflation target of 6 to ten percent. The current rate of inflation, according to the Bank of Ghana, is 10.1%. The country’s 91-day Treasury note interest rate is at 13.5937%. Ghana’s interbank interest rate is 13.57%.
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Alton Drew 