Interbank Market News Scan: Payments, remittances; Banks increasing hiring in Hong Kong

Links you should follow ….

Interbank. China Development Bank has issued US$2bn of domestic US dollar bonds in China’s interbank market, its first such issuance in six years, according to a statement on its website. https://www.nasdaq.com/articles/cdb-prints-first-domestic-usd-bonds-in-six-years-2021-06-04

Interbank. The People’s Bank of China, the central bank, has urged commercial banks to abandon the London Interbank Offered Rate for dollar-denominated loans having a floating-rate benchmark. http://global.chinadaily.com.cn/a/202106/03/WS60b82ddca31024ad0bac34a6.html Remittances. Moroccans residing abroad (MREs) have sent back nearly $3.3 billion (MAD 28.8 billion) in remittances in the first four months of the year.  https://www.moroccoworldnews.com/2021/06/342716/morocco-sees-45-3-increase-in-remittances-in-first-quarter-of-2021

Banks. The pace of interest rate hikes by emerging market central banks slowed in May as policy makers in developing nations face uneven economic recoveries from the COVID-19 pandemic.  https://www.reuters.com/article/emerging-rates/graphic-grinding-higher-emerging-market-central-banks-raise-rates-in-may-idUSL5N2NM29S

Banks. If you’ve looked at your savings account statement recently, you may have noticed a lower interest rate than you were expecting. Perhaps as low as 0.06%. This is not a typo. https://www.forbes.com/sites/forbesfinancecouncil/2021/06/04/why-digital-banks-offer-higher-interest-rates-on-savings-accounts/?sh=325769ed6ccc

Banks. Some global banks, funds and other financial services providers say they are stepping up hiring in Hong Kong, in a sign the city’s unique position as a financial gateway to China is outweighing concerns about Beijing’s tightening grip over it. https://www.reuters.com/business/finance/banks-bulk-up-hong-kong-china-business-overshadows-politics-2021-06-03/

Payment systems. The United States’ restaurant delivery marketplace seems like a complex tangle of emerging and incumbent delivery services, technological platforms and payment methods, but it has nothing on Europe’s. https://www.pymnts.com/restaurant-innovation/2021/limonetik-on-how-payment-methods-can-make-or-break-food-marketplaces-international-expansion/

Payment systems. Russia’s central bank governor, Elvira Nabiullina, has said for CNBC that digital currencies will be the future of financial systems, as the economy moves online. https://thepaypers.com/payments-general/the-digital-rouble-could-help-russia-bypass-the-swift-banking-payment-system–1249437

Foreign exchange rates of interest, 30-day trading range; 5 May 2021 to 4 June 2021

Source: OANDA

Currency PairsRates as of 11:20 am AST 4 June 2021Rates as of 10:30 am AST 5 May 2021Percentage Change
XCD/EUR0.30340.3085-1.7%
XCD/GBP0.26190.2664-1.7%
XCD/USD0.37040.3704flat
XCD/CAD0.44730.4548-1.6%
TTD/EUR0.11910.1206-1.2%
TTD/GBP0.10230.1041-1.7%
TTD/USD0.14490.1448flat
TTD/CAD0.17500.1778-1.6%
GYD/EUR0.00380.0038flat
GYD/GBP0.00330.0033flat
GYD/USD0.00460.0046flat
GYD/CAD0.00560.0056flat

For the period 5 May 2021 to 4 June 2021, the Eastern Caribbean saw a continued fall in exchange rates between the European Union (-1.7%); Great Britain (-1.7%); and Canada (-1.6%).  The XCD is pegged to the U.S. dollar and for that reason remained flat.

The Trinidad and Tobago dollar saw its price fall over the same period in terms of the euro (-1.2%); the pound (-1.7%); and the Canadian dollar (-1.6%).  The U.S. dollar price for the TTD remained flat over that period.

The euro, dollar, pound, and loonie rate of the Guyanese dollar remained flat during the 5 May 2021-4 June 2021 period.

Interbank Market News Scan: Eastern Caribbean and Trinidad and Tobago dollars see ups and downs over last 30 days …

Links you should follow …

Trading desks. As Beijing attempts to regulate and suppress the cryptocurrency boom, traders have been evading regulatory oversight by using over-the-counter trading desks. https://www.investing.com/news/cryptocurrency-news/chinese-traders-turn-to-otc-desks-amid-regulatory-crackdown-2519626

Trading desks. A study by UNSW Business School associate professors Elise Payzan-LeNestour and James Doran looked at how ambient sound affects financial traders’ abilities to perceive financial risks.  https://www.financialstandard.com.au/news/how-noise-impacts-trading-performance-179778519

 Interbank. Global financial regulators on Wednesday urged firms to stop using Libor by the end of the year, and said derivatives markets linked to the tarnished interbank rate should switch to “risk free rates” or RFRs compiled by central banks. https://www.reuters.com/article/us-g20-libor-regulator-idUSKCN2DE112

Foreign exchange rates of interest; 30-day range from 2 May 2021 to 2 June 2021

Currency PairsRates as of 10:30 am AST 2 June 2021Rates as of 2 May 2021Percentage Change
XCD/EUR0.30290.3080-1.7%
XCD/GBP0.26100.2679-2.6%
XCD/USD0.37040.3704flat
XCD/CAD0.44630.4551-1.9%
TTD/EUR0.11880.1203-1.2%
TTD/GBP0.10230.1046-2.2%
TTD/USD0.14520.1446+.41%
TTD/CAD0.17500.1776-1.5%
GYD/EUR0.00380.0038flat
GYD/GBP0.00330.0033flat
GYD/USD0.00460.0046flat
GYD/CAD0.00560.0056flat
Source: OANDA

The Eastern Caribbean region saw its foreign exchange rate decrease or remain flat between the European Union, Great Britain, the United States, and Canada.  The Euro price for the Eastern Caribbean dollar fell 1.7% to EUR 0.3029 from EUR 0.3080 on 2 May 2021.  The pound price of an Eastern Caribbean dollar fell 2.6% to EUR 0.2610 from its 2 May 2021 level of EUR 0.2679. The Canada dollar price of the XCD fell 1.9%.

The Trinidad and Tobago dollar was a mixed bag over the same 30-day period.  The Canada dollar price for TTD fell 1.5% from CAD 0.1776 to CAD 0.1750.  The Euro price of the TTD fell 1.2% to EUR 0.1188 from EUR 0.1203. Meanwhile, the pound price of the TTD fell 2.2%.

The price for the Guyanese dollar remained flat over the period 2 May 2021 to 2 June 2021.

Interbank Market News Scan: The Caribbean, foreign exchange, and interdealer …

Links you should follow …

Interbank. The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China’s interbank market, decreased 4 basis points to 2.187 percent Tuesday.  http://www.china.org.cn/china/Off_the_Wire/2021-06/01/content_77540607.htm

Interbank. The Korea Interbank Offered Rates (KORIBOR) as posted by Yonhap Infomax, the financial news and information arm of Yonhap News Agency, at 11:00 a.m. https://en.yna.co.kr/view/AEN20210601004000320

Interbank. Chile’s peso outperformed Latin American peers on Monday as prices for the country’s top export, copper,rose on supply concerns, while the Peruvian sol fell ahead of final round presidential elections on June 6. https://www.reuters.com/article/emerging-markets-latam/emerging-markets-chiles-peso-outperforms-perus-sol-drops-ahead-of-elections-idUSL2N2NI1E4

Interdealer. Dealers saw some buying on the first day of June, perhaps motivated by the Bank of Japan not making any changes to its bond buying plan, but flows in the interdealer market were very light. With no JGB auction or BoJ bond buying operations scheduled for today, the market may be waiting for the US bond market to reopen after yesterday’s Memorial Day holiday and provide near-term direction to JGBs. https://www.nasdaq.com/articles/jpn-govts-close%3A-jgbs-do-little-all-day-interdealer-market-very-quiet-2021-06-01

Foreign exchange. China’s central bank said on Monday that it would raise the amount of money that financial institutions must set aside as reserves for their foreign exchange deposits, in the latest move to curb the yuan’s recent rapid appreciation. https://www.scmp.com/economy/china-economy/article/3135520/chinas-central-bank-moves-slow-yuans-rise-concerns-rise-over

Foreign exchange. The dollar hovered near five-month lows on Tuesday as investors waited for euro zone inflation data and a U.S. manufacturing survey, while the yuan steadied after China’s central bank took steps to limit its appreciation. https://www.cnbc.com/2021/06/01/forex-markets-dollar-us-federal-reserve-british-pound.html

Foreign exchange rates of interest: Eastern Caribbean, Guyana, Trinidad and Tobago …

Currency PairsRates as of 10:30 am AST 1 June 2021
EUR/XCD3.2959
GBP/XCD3.8319
USD/XCD2.7000
CAD/XCD2.2364
EUR/TTD8.1434
GBP/TTD9.4676
USD/TTD6.6710
CAD/TTD5.5257
EUR/GYD245.1550
GBP/GYD285.0200
USD/GYD200.8310
CAD/GYD166.3500
Source: OANDA

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