Central banks
Jamaica ‘mints’ first units of digital currency
Central bank kicks off pilot exercise with limited issuance of currency to banks and payments firms
CBDCs provide ‘clean slate’ for cross-border payments, says report
International bodies urge central banks to bolster CBDC co-operation
Sri Lanka central bank imposes capital controls
Measure restricts exports of foreign currency as government faces debt challenge
El Salvador’s bitcoin currency experiment
Move by first nation to approve bitcoin as legal tender raises important issues, writes former Fed advisor
Ailing Suriname floats its currency
Defaulting country holds debt talks as inflation and corruption take toll
Bank of Israel accelerates work on CBDC
Central bank has been exploring pros and cons of issuing a digital shekel since 2017
Dollar’s share of global reserves falls to 25-year low
Gradual decline may stem from currency diversification by emerging market central banks – IMF report
HKMA and BoJ launch new securities settlement framework
New “delivery versus payment link” aims to reduce settlement risk
‘Do no harm’: central bankers warn against rush to issue CBDC
Agustín Carstens, Jerome Powell and Jens Weidmann highlight risks of acting too fast
BIS and central banks partner to create CBDC ‘bridge’
Cross-border project will link up digital currencies of China, Hong Kong, Thailand and the UAE
Ulrich Bindseil on the launch of the digital euro
The ECB’s director-general for market infrastructure and payments speaks about the functionality, tiering approaches, privacy policies, ledger technology and ecosystem impact of the eurozone's planned CBDC
Central banks must mobilise their FX reserves
Pandemic and climate crises call for bold action, write Gary Smith and John Nugée
Project Helvetia proves central banks can use tokenised assets – BIS
Benoît Cœuré says project marks “the beginning of the further evolution of central banking”
BoE needs ‘better handle’ on control of UK currency
Lawmakers highlight the UK’s disjointed cash management, which could put consumers at risk, they say
Argentina allows peso to fall faster
Central bank increases repo rate as currency falls and inflation rises, despite severe GDP contraction
ECB steps up research on ‘digital euro’
Central bank analysing both centralised and decentralised options for a digital currency
An end to the loveless marriage with the US dollar?
Covid-19 represents an unexpected shock that could cause further US dollar decoupling, which could show up in next week’s Cofer data release, writes Gary Smith of Tabula Investment Management
Boston Fed and MIT collaborate on digital currency research
Research results on software architecture will be released as open source
Taiwan regulator open to more onshore insurer FX hedging
Central bank suggests lifers can use onshore swaps to hedge dividends, but some warn it could hit NDF market
CLS proposes second-tier FX settlement system
Stripped-back system for EM currencies mooted to tackle rising settlement risk
Malaysia has triumphed in FX reforms – but what comes next?
Relinquishing currency controls will be a much harder task
Appetite for renewed Fed dollar swap lines in doubt
With up to $300bn of positions nearing expiry, some say FX swap market can meet banks’ funding needs
Charted: rush for dollar liquidity fades
Figures from central bank dollar repo facilities show waning demand, but outstanding swaps still high
El-Erian on Covid-19 policy risks and ‘zombie’ markets
Former Pimco chief says Fed move into high yield is a step too far, new rules needed on leverage and false liquidity, and narrow window emerges for central banks to shed some of their policy load