International
Initiative: BoT and MAS’s PromptPay-PayNow link
Connecting the two nations’ instant payment systems is empowering citizens
Specialised lending initiative: BNP Paribas Securities Services
Technology platform improvements have resulted in faster, safer and more tailored securities lending services to its central bank clients
Project Ellipse: real-time data and the ‘art of the possible’
BIS’s Andrew McCormack and MAS’s Kenneth Gay talk about phase two of the suptech project, which combines real-time news with regulatory data
Currency services: De La Rue
Printing doyen expanded capacity, functionality and market share amid corporate turnaround
Board sizes vary widely across central banks
Board terms average around five years and non-executive directors are common
Rich countries’ central banks less likely to manage sovereign debt
Practice is more common among middle and lower income countries, and in Africa and the Americas
Three-quarters of surveyed central banks answer to parliaments
Held accountable: benchmark responses on how central banks report on their activities
Governor salaries range as high as $1 million
Base pay tends to rise with GDP per capita, but there is wide variation, benchmark data shows
Governor of the year: Mario Marcel
Chile’s governor has expertly navigated a third currency crisis in two years, amid wider EM stress and political volatility, while bolstering the central bank’s capabilities
ESG portfolio services: Moody’s
The US company is offering new ways for central banks to assess and transition their ESG exposures
Asset manager: BNP Paribas Asset Management
The financial institution has helped clients to diversify their portfolios, boost returns and adopt ESG strategies during the second year of Covid-19
IMF says Ukraine invasion likely to cut global growth
Higher commodity and food prices will impact Sub-Saharan Africa, Latin America and Central Asia
Energy firms call for central bank support to cover margin spikes
Trade body warns energy market participants risk being unable to meet “unprecedented margin requirements”
Book notes: Shutdown, by Adam Tooze
A useful, wide-ranging overview, showing how health and economic policies are intimately intertwined with geopolitics
Some CCPs could struggle to cover major losses – FSB
Cyber attack could pose serious problems for systemically important CCPs, report finds
BIS paper finds benefits from ‘deconstructing’ ESG scores
“Best-in-class” strategy can overcome problems with other approaches, authors say
Reciprocity can curb macro-prudential ‘leakages’ – BIS paper
But gains can be small, which may explain limited use of reciprocity to date, authors say
Markus Brunnermeier on the need for CBDCs
The Princeton academic co-authored a paper for the European Parliament exploring the potential pitfalls of CBDCs. But they are still needed, he says
Latin American dollar debts could cause systemic risk, paper says
Authors say the Fed risks a major policy mistake if it ignores the wider impact of tighter US policy
Outsider arts: how Russia might adapt to sanctions
The history of the USSR and actions by other sanctioned countries may give clues to Russia’s next moves
Rethinking sovereign risk
‘Risk-free’ assets now include the possibility of complete confiscation with no recourse
Global markets show signs of strain as Russia sanctions bite
Flight to safe havens is starting to create tensions in dollar funding markets
Emerging economies ‘remarkably’ resilient to Fed tightening, BIS says
Many EME currencies have appreciated, but Turkish lira and Russian ruble are notable exceptions
BIS paper estimates slack in Mexico’s informal labour market
Calculating Nairu is challenging given large unregulated sector, authors say