Reserves
Korean cb, government differ on reserve management
A Korean presidential committee has said it will grant a soon-to-be-established corporation management control over about $20 billion in foreign reserves despite objections from the Bank of Korea, according to the Korea Herald. The BOK argued that the…
Venezuela announces more flexible currency control
President of the central bank of Venezuela, Domingo Maza Zavala, has said that currency controls would be made "substantially" more flexible for the new year, reports VenezuelAnalysis.
BOJ falls into red for first time in over 30 years
The Bank of Japan said on Thursday 27 November that it made a loss in the April-September period for the first time in 30 years, according to Reuters. The main reason for the loss was the rise in long-term yields which resulted in a 793.8 billion yen…
SARB increases dollar buying
The South African Reserve Bank said in a statement released on Friday 28 November that it increased its purchase of US dollars during November, Business Africa reports. SARB governor Tito Mboweni emphasised that these operations represented normal…
Portugal may join budget deficit breakers
Portugal's central bank has announced that its deficit will exceed the EU's 3 per cent limit, under the growth and stability pact, according to a report by EU Politix. The bank said it would probably run a deficit in excess of 4 per cent, due to the…
Issue of NBP revaluation reserve returns
Reports in Poland by the Polish news Bulletin said that the Finance Ministry may try to convince the Monetary Policy Council (RPP) that the central bank's revaluation reserve should be used to patch the budget deficit. However, the RPP criticised the…
China restate goal of eventual yuan convertibility
People's Bank of China Governor Zhou Xiaochuan said in an interview published Monday 17 November, reported by Reuters, that foreign exchange controls would gradually be relaxed and there would be a steady push towards convertibility of the yuan.
Investment portfolio techniques at a central bank
Etienne Lavigne discusses the appropriate reserve management framework and mix of portfolio techniques for a central bank.
Foreign central banks buy more U.S. debt - Fed
Holdings of US Treasuries by foreign central banks rose further above the $1.0 trillion level reaching a new record high in the latest week, according to a Reuters report. The Federal Reserve said on on Thursday 13 November that foreign central banks…
Ireland to consider stability pact reform
Mary Harney, the leader of Ireland's Progressive Democrat Party and Minister for Trade, has said that the EU's stability and growth pact will be considered in detail when Ireland holds the EU Presidency next year, according to the Irish Independent. She…
HKMA moves to weaken Hong Kong dollar rate
The Hong Kong Monetary Authority continued selling HK dollars on Wednesday 12 October and buying about US$100 million, according to a report by Dow Jones. The move further weakened the HK dollar against the US dollar which was already declining following…
Venezuela eases its currency controls
Venezuelan President Hugo Chavez has eased restrictions on credit card use that were imposed to shore up the economy during a two-month general strike called by his opponents, according Associated Press.
Fed says c banks cut holdings of US Treasuries
Foreign central banks were aggressive sellers of US Treasury debt, dumping $11.54 billion-worth over the week to $793.69 billion. In contrast they were buyers of agency debt, expanding their holdings by $4.61 billion to $199.56 billion, according to…
Chile's central bank rules out forex intervention
The central bank of Chile said Tuesday it would not attempt to slow the appreciation of the peso. Board member Jose de Gregorio told reporters, Reuters said, that the Bank intervenes in exceptional cases but we are far from that situation.
Belgium cb's shares fall ahead of court rule
The National Bank of Belgium's shares fell on Friday 24 October on fears that the country's Supreme Court would rule against the central bank in a case to decide ownership of the bank's assets, according to Reuters. An action group representing…
Ecuador reports record monetary reserves
The Central Bank of Ecuador has reported that reserves, which have been increasing since August, have hit a record breaking level, according to a report by CRE Satelital radio. The increase is due to the arrival of new loans from international…
Denmark to start electronic trading in gov't bonds
Denmark will begin trading government bonds electronically from 4 November, AFX Europe reports, The Danish central bank said in a statement "Introducing electronic trading is a step forward in developing the Danish market and bringing its facilities in…
Brazil "wants $10 bln IMF loan insurance"
Reports in Brazil said Finance Minister Antonio Palocci was negotiating with the IMF to secure "insurance" of $10 billion in emergency funds in case of an international economic crisis, according to Reuters. Palocci said he felt that if Brazil were to…
Documents show RBA basement holds huge wine cellar
Documents obtained under Freedom of Information laws show the Reserve Bank of Australia houses a $100,000 wine cellar in the basement of its Sydney headquarters alongside vaults guarding Australia's reserves. RBA secretary David Emmanuel defended the…
Buba eyes 400-600 tonne gold sale in new pact
A report says that the Bundesbank is considering selling between 400 and 600 tonnes of gold from late 2004 to 2009, according to Reuters. Bundesbank President Ernst Welteke declined to comment on details of any deal ahead of discussions in the spring…
Fitch upgrades China's forex rating outlook
The rating agency Fitch has announced that it has revised the outlook for China's A-minus long-term foreign currency rating to positive from stable, according to AFP. China's official foreign currency reserves have been boosted by a continuing strong…
Japan shows quantitative easing works- Fed's Poole
St Louis Fed president William Poole said in the latest edition of the Regional Economist publication, reported by Reuters, that "Japan showed us that a central bank has more than one tool to work with", although many thought Japan had run out of…
ECB adopts new regulations on minimum reserves
The Governing Council of the European Central Bank has adopted new regulations on money and banking statistics and the application of minimum reserves, 7 October.
HKMA intervenes to defend currency peg
The Hong Kong Monetary Authority, according to Channel News Asia, has spent HK$300 million (US$40 million) defending its currency peg against speculators in the past week. Newly-appointed deputy chief William Ryback said it was comfortable with the…