Interbank market news scan: Central banks, foreign exchange …

Follow the links …

Sudan’s central bank steeply devalued the country’s currency, as part of a broader effort to win debt relief and revive the struggling economy. Sudan Central Bank Devalues the Currency to Revive Economy (msn.com)

The Central Bank of Morocco is now studying the concept of central bank digital currencies (CBDCs) and has set up a committee to extensively explore its pros and cons, according to reports on February 20, 2021. Morocco’s Central Bank Looks to Launch Own Digital Currency | BTCMANAGER

Assistant Governor Christopher Kent’s speech on FX markets around the turn of the year. FX Markets Around the Turn of the Year | Speeches | RBA

Reserve Bank of Australia’s cash rate target is 0.1%; 3-year Australian Government Bond Yield target, 0.1%; inflation rate, 0.9%. Reserve Bank of Australia (rba.gov.au)

People’s Bank of China announced open market operation of RMB10 billion, seven days maturity, at 2.20%. Open Market Operations No.33 [2021] (pbc.gov.cn)

Currency pairsExchange Rate as of 4:15 pm 16 February 2021(1) As of 6:53 pm EST Exchange Rate as of 21 February 2021(2)(3)
AUD/USD0.7762 0.7877
USD/CAD1.2694 1.2609
USD/CNY6.4567 6.4555
EUR/USD1.2126 1.2116
USD/INR72.6000 72.5600
GBP/USD1.3855 1.4012
USD/JPY104.9400 105.3700
USD/MXN19.9300 20.4320
USD/DKK6.1325 6.1339
USD/NOK8.4558 8.4627
BTC/USD  52843.4000
ETH/USD  1,859.5100
Sources: Federal Reserve(1); Reuters-FX rates(2); OANDA-Crypto rates(3)

Interbank market scan as of 11:03 am AST: Central banks, foreign exchange

Currency pairsExchange Rate as of 11:07am AST 28 January 2021Exchange Rate as of 12:10 pm AST 29 January 2021
AUD/USD0.76810.7695
USD/CAD1.27741.2766
USD/CNY6.48226.4291
EUR/USD1.21181.2148
USD/INR73.050072.8335
GBP/USD1.37151.3722
USD/JPY104.0600104.7100
USD/MXN20.700020.2232
USD/DKK6.15546.1206
USD/NOK8.62428.5291
Source: Reuters

The Chinese yuan exhibited increased strength against the U.S. dollar. This may be due in part to decision of the People’s Bank of China to be more hawkish on interest rates and modifying the interbank market rate of the yuan to reflect tightening liquidity. (See links to two articles below).

News from the federal government …

Yesterday, the White House released the following statement addressing a call between members of the National Security Council and the European Commission:

“National Security Advisor Jake Sullivan spoke by phone today with European Commission President Ursula von der Leyen’s Head of Cabinet Bjoern Seibert. Mr. Sullivan underscored President Biden’s commitment to the transatlantic alliance and his intention to repair and revitalize the U.S.-EU partnership, including our trade and investment relationship. They discussed the importance of close U.S.-EU cooperation on the COVID-19 pandemic and global health security, as well as the global economic recovery and climate change. They also agreed to work together on issues of mutual concern, including China and Turkey.”

In other news: The markets ….

Julian Evans-Pritchard, Senior China Economist at Capital Economics suggests that the People Bank of China (PBOC) could be delivering a hawkish signal, in light of the recent surge in the interbank rates. PBOC: Surge in interbank rates is a hawkish signal – Capital Economics (fxstreet.com)

China’s yuan firmed on Thursday, as tight interbank liquidity heading into Lunar New Year pushed money markets rates higher, though gains were limited as a global stock market rout increased safe-harbour demand for assets like the dollar. China’s yuan inches up as tight liquidity pushes interbank rates higher | Nasdaq

Sweden’s central bank said it had agreed with the U.S. Federal Reserve to extend a $60 billion swap agreement signed during spring last year until Sept. 30 this year. Sweden’s Central Bank Extends Swap Arrangement With U.S. Federal Reserve | Investing News | US News

Bank of America was ringing alarm bells over equities on Friday, as it warned a correction is looming. Get ready for a 10% stock drop, driven by the 3 ‘Rs,’ warns Bank of America (msn.com)

The Central Bank of Nigeria plans to obtain all the necessary approvals required to start the operations of a proposed commodities exchange within the next 90 days, Governor Godwin Emefiele said on Thursday. Nigeria Commodities Exchange to Start in 90 Days to Help Stabilize Food Prices – Bloomberg

The value of Dogecoin, a joke cryptocurrency that launched back in 2013, hit record levels on Thursday. Its price rose by more than 800 percent, reaching around $0.082, which raised its market value to around $7 billion, according to Coindesk, which monitors cryptocurrency prices. Dogecoin Price Tracker, Update as Cryptocurrency Value Skyrockets (msn.com)

Robinhood has restricted trading in cryptocurrencies a day after blocking new purchases of 13 stocks amid “extraordinary market conditions,” the app said. Robinhood Blocks Cryptocurrency Trading, Blames ‘Extraordinary Market Conditions’ (msn.com)

“Guys,” he told them, “I don’t know if bitcoin goes lower next month, but I think over the course of time, bitcoin will be higher.” To be more exact, Denier predicts the cryptocurrency will surge to $US55,000 per coin by the end of 2021, a 70% increase from its current price of around $US32,200. Webull CEO Anthony Denier predicts Bitcoin will surge to $55,000 by the end of 2021. He told us why he’s bullish on the cryptocurrency long-term. (msn.com)