News

Gulf to make dollar peg to monetary union-report

BAHRAIN - Members of the Gulf Cooperation Council have agreed to adopt the U.S. dollar as the sole peg for a proposed single currency for the group, senior GCC official said in remarks published by Bahraini newspapers on Apr 22.

Settlement system to remain in New Zealand

NEW ZEALAND - The Reserve Bank of New Zealand announced on Apr 18 that its plan to move the hardware used for inter-bank settlements in New Zealand to Sydney will not proceed.

Foreign exchange origins of Japan's economic slump

ARTICLE - Ronald McKinnon from Stanford University and Kenichi Ohno from Tokyo's National Graduate Institute for Policy Studies have written an article on "The Foreign Exchange Origins of Japan's Economic Slump and Low Interest Liquidity Trap". The…

EMU not all it's cracked up to be

ARTICLE - Fabrice Collard and Harris Dellas from the Centre for Economic and Policy Research have published a paper "Exchange Rate Systems and Macroeconomic Stability". One of the article's vital conclusions is that the justification of the single…

O'Neill mystified by Europe's complacency-FT

EUROPE - Paul O'Neill, U.S. Treasury secretary, said on Apr 19 that he was "mystified" by European leaders' claims that Europe would not be affected much by a U.S. downturn, the Apr 20 overseas edition of the Financial Times reported.

Malaysia concedes IMF role in Asia forex swap deal

MALAYSIA - Malaysia will bow to a majority decision on whether the IMF plays any role in an Asia-wide currency swap safety net aimed at protecting countries facing balance of payments problems, Prime Minister Mahathir Mohamad said.

China's cbank drafts e-banking regulations

CHINA - China's central bank is drafting regulations concerning e-banking and guidelines for e-banking risk management, which are expected to be promulgated soon, a top bank official announced.

Honduras not ready to adopt dollar-central banker

HONDURAS - A large trade deficit and limited foreign currency reserves mean Honduras is not ready to follow in the footsteps of neighboring El Salvador and dollarize its economy, Central Bank President Victoria Asfura said on Apr 19.

India may cut interest rates

INDIA - India's central bank has indicated an intention to cut interest rates to help revive the slowing economy. The governor made his comments at a presentation on monetary policy for this year.

Estonian cbank 2000 profit 158.3m EEK

ESTONIA - The Estonian central bank said on Apr 19 its council had closed the books on its 2000 financial year that ended with 158.3 million kroons ($9.02 million) profit.

Tsang fights for Exchange Fund independence

HONG KONG - Financial Secretary Donald Tsang has rejected the Democratic Party's request to freeze a Hong Kong Monetary Authority plan to spend HK$4 billion from the Exchange Fund on new offices.

Caruana warns savings banks over shareholdings

SPAIN - the Bank of Spain governor Jaime Caruana on Apr 18 warned the annual assembly of savings banks that being stable shareholders in industrial companies, with influence on the management, could conflict with their status and objectives.

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