Tag Archives: Exchange rate

Three BIS innovation hubs plan to test DeFi inspired liquidity pools to exchange wCBDCs. BIS press release: Project Mariana will use DeFi protocols to automate foreign exchange markets and settlement. Automated market makers can become the basis for new generation of financial infrastructure. Exploration on cross-border exchange of wholesale CBDCs is the first to involve three Hub centres. The BIS Innovation Hub is launching a new project around central bank digital currencies (CBDCs)...

In a CEPR discussion paper Christian Bayer, Chi Kim, Alexander Kriwoluzky analyze redenomination risk during the European debt crisis and how the European Central Bank’s interventions affected this risk. They conclude that the risk fell in the case of Italy but increased for France and Germany. From the abstract: … first estimate daily default-risk-free yield curves for French, German, and Italian bonds that can be redenominated and for bonds that cannot. Then, we extract the compensation...

In the NZZ, Monica Rüthers writes about the history of the border between Konstanz (in Germany) and Kreuzlingen (in Switzerland). Shoppers have been crossing the border for ages although governments have tried to prevent this with varying fervor. Exchange rate regimes have affected which goods are bought, where.

Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe – Real inflation in Zimbabwe is 313 percent annually and 112 percent on a monthly basis – Venezuela’s new 100,000-bolivar note is worth less oday thehan USD 2.50 – Maduro announces plans to eliminate all physical cash – Gold rises in response to ongoing crises One Hundred Trillion Dollars Zimbabwe - Click to enlarge A military coup-de-grace in Zimbabwe...

(GLOBALINTELHUB.COM) Dover, DE — 7/18/2017 — Hidden in plain site, as the Trump administration finally released something of substance regarding the so called promised “Trade Negotiation” we see FX take center stage in the global drama unfolding.  As noted on a Zero Hedge article: The much anticipated document (press release and link to full document) released by U.S. Trade Representative Robert Lighthizer said the...

(GLOBALINTELHUB.COM) Dover, DE — 7/18/2017 — Hidden in plain site, as the Trump administration finally released something of substance regarding the so called promised “Trade Negotiation” we see FX take center stage in the global drama unfolding.  As noted on a Zero Hedge article: The much anticipated document (press release and link to full document) released by U.S. Trade Representative Robert Lighthizer said the Trump administration aimed to reduce the U.S. trade deficit by...

On the FT’s Alphaville blog, Matthew Klein reviews Swiss monetary policy over the last years and its effect on the real economy. He concludes that it seems the SNB’s relentless accumulation of foreign assets has been pointless — at best. More likely, the behaviour qualifies as predatory mercantilism at the expense of the rest of the world, especially Switzerland’s hard-hit neighbours. SNB Holdings, 2001 - 2017(see...

In the FT, Sam Fleming and Demetri Sevastopulo report that the White House considers Marvin Goodfriend for the Federal Reserve’s Board of Governors. He has criticised the Fed’s crisis-era balance sheet expansion, saying the central bank should generally not purchase mortgage-backed securities, and has advocated the use of monetary policy rules to guide policy, as has Mr Quarles. … At the same time, however, Mr Goodfriend has been willing to contemplate the use of deeply negative rates to...

This Great Graphic was created on Bloomberg. It shows two times series. The yellow line and the left-hand scale show the euro’s exchange rate against the dollar for the past year.  The white line depicts the spread between the US two-year and 10-year yield. I show the curve this way to be more intuitive with the euro rather than the 10-2 yr curve. To be clear as the curve has flattened the white line rises.   Despite me...

This Great Graphic was created on Bloomberg. It shows two times series. The yellow line and the left-hand scale show the euro’s exchange rate against the dollar for the past year.  The white line depicts the spread between the US two-year and 10-year yield. I show the curve this way to be more intuitive with the euro rather than the 10-2 yr curve. To be clear as the curve has flattened the white line rises.   Despite me...