by By Dara O’Sullivan, Derrick Leonard, and Ilan Solot As the week commences, a few markets such as Sri Lanka and Philippines are extending their lockdown periods while others such as Nigeria and Kenya continue to experience USD liquidity issues. Please see comments below. Sri Lanka: The Colombo Stock Exchange (CSE) was expected to resume operations on April 27 but, due to an uptick in Covid-19 cases, the exchange remains closed until May 4. Foreign exchange trading is still permitted between the hours of 8:30am and 1.15pm. . Philippines: The market extended the current period of reduced operating hours from 9:00 to 14:00 until May 15, 2020. The cut off for FX activity remains 2:00 pm. . Nigeria: Liquidity issues continue in the Nigerian market. The CBN remains
Topics:
Win Thin considers the following as important: 5) Global Macro, 5.) Brown Brothers Harriman, Featured, newsletter, Uncategorized
This could be interesting, too:
Nachrichten Ticker - www.finanzen.ch writes Krypto-Ausblick 2025: Stehen Bitcoin, Ethereum & Co. vor einem Boom oder Einbruch?
Connor O'Keeffe writes The Establishment’s “Principles” Are Fake
Per Bylund writes Bitcoiners’ Guide to Austrian Economics
Ron Paul writes What Are We Doing in Syria?
| By Dara O’Sullivan, Derrick Leonard, and Ilan Solot
As the week commences, a few markets such as Sri Lanka and Philippines are extending their lockdown periods while others such as Nigeria and Kenya continue to experience USD liquidity issues. Please see comments below. Sri Lanka: The Colombo Stock Exchange (CSE) was expected to resume operations on April 27 but, due to an uptick in Covid-19 cases, the exchange remains closed until May 4. Foreign exchange trading is still permitted between the hours of 8:30am and 1.15pm. |
 . |
| Philippines: The market extended the current period of reduced operating hours from 9:00 to 14:00 until May 15, 2020. The cut off for FX activity remains 2:00 pm. |
 . |
| Nigeria: Liquidity issues continue in the Nigerian market. The CBN remains the single largest provider of USD to Foreign Portfolio Investors and as a result, investors are only seeing rare allocations of liquidity. As a result, only a few repatriation requests are being executed. We continue to monitor the liquidity situation and will provide updates as they are received. |
 . |
| Kenya: The market has been experiencing limited USD liquidity and delays in repatriations. The FX market reduced its trading hours on March 30 and now operates from 9:00 am until 2:00 pm until further notice. |
 . |
| Mauritius: Local banks continue to experience liquidity issues. The Stock Exchange of Mauritius (SEM) reopened on April 6 following a period of closure and the banks continue to support trading, settlement, cash clearing and FX activities. |
 . |
| India: On April 16, 2020, The Reserve Bank of India (RBI) announced the market will extend the current lockdown scenario until April 30,2020. All markets will be open from 10:00am to 2:00pm. For any clients actively trading this market, please continue to observe the current reduced temporary trading hours. |
 . |
| Indonesia: Bank Indonesia reduced FX and bond market trading hours from until further notice. Where previously the market was open for trading from 8:00am until 4:00pm the revised hours are now 9:00am until 3:00pm. |
 . |
| Vietnam: On April 15, 2020 the government announced that social distancing measures are to remain in place until April 30, 2020. The FX market had been experiencing limited foreign currency liquidity. In recent days, however, local banks advised there has been a noticeable improvement in liquidity and they are no longer seeing delays in repatriations. |
 . |
| Pakistan: Effective April 16, the Pakistan Stock Exchange (PSE) announced the amended trading hours currently in operation are to remain in place. From Monday to Thursday trading hours have been reduced to 10:00am to 4:00pm. On Fridays, they continue to operate a single trading session only on Fridays from 10:00am to 1:00pm. During this time banks will facilitate support for trading, settlement and cash clearing for FX and government debt. |
 . |
| Ghana: The FX market continues to experience limited foreign currency liquidity. Local banks warned about possible delays in repatriations. |
 . |
| Morocco: The Casablanca Stock Exchange (CSE) and the Bank al Maghrib (BAM) shortened their FX and securities deadlines to 2:00 pm until further notice. |
 . |
| Bangladesh: On April 23, the government announced market lockdown will continue until May 7. While there is no trading and settlement allowed, banks will operate on reduced hours from 10:00am to 2:00pm to facilitate cash clearing and FX activity. |
 . |
| Chile: The Chilean interbank FX market reduced its operating hours. The FX market will close at 1:00 pm until further notice. |
 . |
| Egypt: On April 8, 2020, the government extended the nationwide curfew until further notice. While cash and securities deadlines have been reduced so far there has been no impact to our FX executions. |
 . |
| Serbia: Effective March 24, the Republic of Serbia has been in a State of Emergency. Banks are working on reduced operating hours and now close at 3:00pm. |
 . |
| GULF COUNTRIES
Saudi Arabia: A nationwide curfew rema ins in place in Saudi Arabia daily from 3:00 pm until 6:00 am. Trading hours had been reduced, and with the holy month of Ramadan the market is now closing at 1:00 pm. Kuwait: Effective April 7, the Council of Ministers extended their previously declared market holiday further to May 28. This has resulted in local FX markets closing at 12.30pm instead of 1.30pm. Oman: Effective March 29, the Muskat Securities Market (MSM) reduced trading hours in response to Covid-19. The market will now close at 1:00pm. |
 . |
You Might Also Like
Dollar Firm Ahead of BOE Decision
The World Health Organization called an emergency meeting today; the dollar continues to climb. The FOMC meeting was a non-event; US advance Q4 GDP will be reported. Risk-off sentiment has derailed curve steepening trades. Implied rates still suggest that today’s BOE meeting is a coin toss.
Dollar Mixed as Some Risk Appetite Returns
The dollar continues to climb; one of side-effects of the virus has been a swelling of the amount of negative yielding debt globally. The US primary season got off to a rocky start for the Democrats. During the North American session, December factory orders will be reported; the US economy remains strong.
Dollar Firm in Thin Holiday Trading
The virus news stream is mostly positive today; yet risk assets are starting the week under some modest pressure. The dollar took a hit last week but we think it will recover; some US data releases from Good Friday are worth repeating. With most of Europe closed today, the news stream from the region is very light; oil prices could not extend their gains today after OPEC+ finalized output cuts over the weekend.
Dollar Stalls as Market Sentiment Improves
The virus news stream remains mixed; oil remains at center stage with still extreme volatility. The White House and House Democrats struck a deal on a new aid package worth $484 bln. Canada reports March CPI; Mexico delivered a surprise 50 bp cut to 6.0% yesterday afternoon.
EM Sovereign Rating Model For Q2 2020
The major ratings agencies are punishing Emerging Markets (EM) credits much more than their DM counterparts. Our own sovereign ratings model suggests that there is still more pain to come.
We have produced this interim ratings model to assist investors in assessing relative sovereign risk across the major EMs.
Dollar Steady as Global Economy Falls Off a Cliff
The virus news stream is negative today; the dollar is trying to build on its recent gains. Weekly jobless claims are expected at 4.5 mln vs. 5.245 mln last week; regional Fed manufacturing surveys for April continue to roll out. ECB confirmed reports that it will accept sub-investment grade debt as collateral; EU leaders will hold a video conference today.
Thoughts on the Potential Market Impact of US Downgrades
Our sovereign rating model suggests the US will lose its AAA/Aaa rating. With fiscal stimulus efforts continuing with this latest $484 bln package, the case for downgrades just keep getting stronger but the timing is unclear. How might markets react? We look back to 2011 for some clues.
Dollar Remains Under Pressure as Risk-on Sentiment Persists
The death toll from the virus continues to trend lower in Europe and the US; the dollar remains under some pressure. The Fed announced an expansion of its Municipal Liquidity Facility (MLF); regional Fed manufacturing surveys for April continue to roll out; other data will be reported.
Tags: Featured,newsletter,Uncategorized