Opinion

'Watershed' yuan revaluation has made few waves

According to this article Wednesday 21 September marked the two-month anniversary of China announcing it was de-linking its currency from the U.S. dollar. But the Chinese currency has barely budged beyond the initial rise of about 2 per cent, it says.

IMF's clout and relevance wane

As finance ministers and central bankers from around the world gather in Washington this week for the IMF's annual meetings, the organization finds its relevance waning, this article published on Monday 19 September reports. The Fund may need to define a…

Is the ringgit ripe for a rise? Market thinks so

While Malaysia has kept a tight grip on the ringgit since the currency's peg against the dollar was abandoned, this article says markets are starting to bet that high inflation could tempt authorities to relax their control.

Comment: Challenging 'received wisdom'

In delivering the Keynes Lecture in Economics at the British Academy on Tuesday, Bank of England MPC member, Professor Stephen Nickell, set out to refute two major areas of criticism of MPC's track-record over the last five years.

Central Bank of Argentina - a changed view on gold

This article published Monday 19 September says the Central Bank of Argentina has now changed its philosophy and was a purchaser of gold during 2004 as it reshaped its portfolio and may consider taking more in the future along with other Latin American…

Comment: Gold stages a comeback

With the gold price hitting 18-year highs, it is about time there was serious re-thinking among central bankers with regards to holding gold as a part of their reserve portfolios.

Fed will raise rates and indicate more to come

According to an article published on Monday 19 September, the Federal Reserve's FOMC committee will increase interest rates on Tuesday, with financial markets gradually accepting that the effect of Hurricane Katrina won't deter them.

Comment: Divergence and monetary policy

The issue of regional economic divergence continues to attract much attention from policymakers and academics studying the eurozone. The issue is particularly important for the ECB, as it is often mentioned that divergent economic performance across…

China's forex regime poses fresh puzzle

An article published on Tuesday 13 September says China's new rules for its currency regime could mean the country may be forced to battle the nearly $2 trillion-a-day global forex market to try to control the dollar, euro and yen exchange rates.

Comment: Managing Asian reserves

The accumulation of foreign-exchange reserves by Asian central banks is one of the most talked-about developments in international finance in recent years. Arguably, it is also one of the most misunderstood ones too - its causes and consequences being…

Uniform accounting rules face hurdles in Europe

This article published on Tuesday 13 September says that although the path to uniform and stricter global accounting rules is paved with good intentions, problems have arisen in Europe that could delay the adoption of parts of International Accounting…

The IMF must redefine its role to stay relevant

In a commentary published on Wednesday 14 September International Monetary Fund managing director Rodrigo de Rato said although globalisation has brought enormous benefits in growth and efficiency, cross-border financial crises have heightened the…

If the Fed stops pushing, might bond yields rise?

A recent article looks at the potential effect on the bond market if the Federal Reserve doesn't raise interest rates when it meets next week. The bond market could at last give us some of the higher longer- term interest rates that the Fed has been…

BOT soldiers guard the nation's finances

This article published on Monday 12 September looks at the Bank of Thailand's reserve management team. There's no longer concern about over-reacting if speculators come pounding at the barriers again, as they did in 1996-97, it says.

Comment: view from London

Today we turn to Andrew Smithers, the market analyst and economist, whose latest Market Update (September 14) provides a stimulating commentary on the markets - and food for thought for central bankers everywhere.

Euro area decision-making lacks synchronisation

This article published on Thursday 8 September by ECB Executive Board Member Lorenzo Bini Smaghi says Eurozone countries could boost the effectiveness of the currency union by unveiling their national budgets around the same date and by using the same…

China is under pressure to revalue yuan again

According to this article published on Tuesday 13 September, China's undervalued yuan is once again under scrutiny. The move by the PBOC has done little to make the currency trade more freely against the U.S. dollar, it says.

Comment: More autonomy for the PBOC?

The IMF board is plainly split on what attitude to adopt towards China's exchange rate policy but has come out usefully supporting moves to give the People's bank of China more discretion in setting interest rates.

Comment: Sarbanov should be supported

Ulan Sarbanov, governor of the National Bank of Kyrgyzstan, has been placed under house arrest. The accusation against him is that he abused his power during the rule of the deposed president Askar Akayev.

Fed may pause for political reasons

Following the devastation caused by Hurricane Katrina, the outcome of the Federal Reserve's next FOMC meeting is up for grabs, this article published on Tuesday 6 September suggests. The answer isn't just a question of policy, politics may be involved as…

Comment: Time for central banks to modernise

During the last 20 years, most central banks have been given much more policy autonomy and independence. Along with this have come pressures for more accountability and transparency. This is entirely appropriate as independence and accountability should…

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