Latin America
Central bank independence helps build reserves – researcher
Latin American central banks given independence built up strong FX reserves, paper finds
Paraguay continues tightening with second 125bp hike
Inflation rises far above 4% target, reaching 7.6% in October
Peru central bank raises rates again
Fourth hike since August “does not necessarily imply a cycle of successive increases”
Paraguay’s central bank raises rates to 1.5%
MPC says monetary policy normalisation should continue in wake of rising inflation
Book notes: Robert Triffin, by Ivo Maes with Ilaria Pasotti
Triffin’s story is well told by Maes, whose extensive personal and academic research shines through on page after page
People: New York names state financial services regulator
New president at development bank; supervisors promoted at regional Feds; and more
Taiwan and Paraguay central banks sign co-operation agreement
Paraguay is only South American state to recognise Taiwan government instead of Beijing
Brazilian minister says Mercosur could have single currency
President has also suggested monetary union with members of trade area
People: Sam Woods reappointed; Fernanda Nechio returns to SF Fed
BoE deputy gets fresh term; Nechio to lead regional Fed’s sustainability research; and more
Governance Benchmarks 2021 report – the frameworks that rule central banks
How are central banks governed? Benchmarking data offers insights on appointments, legal structures, powers, decision-making bodies, independence and more
The Belt and Road Initiative 2021 Survey – The impact of Covid‑19 on the BRI
The fourth annual Belt and Road Initiative survey reveals that the Covid‑19 pandemic has disrupted many projects despite China remaining committed to financing the initiative, which is expected to support future economic growth and environmental…
Cash infrastructure as public good – implications for the cash cycle
Efforts are under way in the Eurosystem to safeguard cash infrastructure as a ‘public good’ even as transaction volumes have fallen significantly. How can policy-makers strike the right balance?
Peru’s central bank caps consumer interest under protest
Central bank governor and president say new law will damage the economy
IMF staff suggest changes to Paraguyan supervision
Report calls for new pension fund supervisor and better supervision of non-banks
Latin American economies threatened by pandemic resurgence – IMF
Western hemisphere chief warns recovery is uneven and under threat
IMF provides $2.7 billion ‘precautionary’ support to Panama
Liquidity line will act as “insurance” for Panamanian authorities grappling with Covid, IMF says
IMF’s Georgieva highlights pandemic impact in Latin America
GDP contraction is forecast to be 8% of GDP in 2020, double the level for the global economy
Bank of Mexico sounds alarm over draft law
Central bank says law could damage its independence and create money-laundering risk
Brazil central bank could ‘test’ lower rates if inflation remains weak – IMF
IMF staff see “no constraint” to lower rates as long as forward guidance is deployed
Central banks face fintech ‘balancing act’ in Latin America – BIS paper
Region needs right institutional framework to benefit from rapid rise of fintech, authors say
People: Norwegian SWF official moves to central bank
Jamaica appoints new deputy governor, while Swedish deputy governor has term extended
Belize’s central bank must improve cyber regulation – IMF staff
IMF staff warns central bank must upgrade physical resilience in face of hurricane threat
Action needed to avert Latin American banking crisis – report
Emergency measures may mask growing solvency problems, institutions warn
Brazil launches new 200 real banknote as hoarding continues
New banknote worth $37 features new security features, and has been sized to ensure quick dispersal