Financial stability
CBDC features will have financial stability effects – Fed paper
Design choices could cut chance of bank runs and disintermediation, authors say
CFTC urged to take lead on CCP margin models
Advisory committee unable to agree steps on margin period of risk, model transparency
MAS unveils renminbi funding for banks in Singapore
New funding scheme of up to 25 billion yuan replaces overnight funding facility
Regulators voice concerns over cloud risk
Risk USA: failure of big cloud service provider could cause “a very large shock”, says NY Fed exec
Joe Biden’s slow road to remaking US financial regulation
Moves on climate risk could come early; other changes may have to wait until the end of 2021, or later
FSB outlines 10-point plan for stablecoin risks
Some powers already exist but stablecoins may cut across regulatory boundaries, report says
RBI and Indian government boost banking sector as election nears
Central bank injects liquidity into banks as government recapitalises more state-owned lenders
Zimbabwe sets up interbank FX market with new dollar-pegged currency
Central bank governor pledges stability, but analyst says initiative is “cancerous”
PBoC sets up department to lead China's financial oversight
Central bank to devise ways to promote international use of yuan
Central banks adapt to faster markets, says BIS report
Fast pace of today’s markets means central banks must change approach to fulfil responsibilities
Trade wars to stay for decades, say panellists
The conflict is a struggle for dominance between the US and China, say economists at the 14th annual FX Week Asia event
Singapore aims to become e-FX hub for Asia, says Loh
Speaking at FX Week Asia, MAS’s Jacqueline Loh says Singapore wants more price discovery to take place
Chinese crypto research puts ethereum in first place
Ethereum ranked number one in public blockchains while bitcoin is ranked only 13th
BIS warns of virtual currency risks
CBDCs could have an impact on global financial stability, and large demand could force central banks into risky assets, new report says
BIS: central banks must act on cryptocurrencies
Agustin Carstens warns against proliferation of cryptocurrencies without regulatory framework
Covered interest parity anomaly signals trouble ahead if volatility picks up
Since the financial crisis, a persistent breakdown of covered interest parity signalled an anomaly in the market. Over the last two years the phenomenon has accentuated and policy-makers should not dismiss its meaning, warns the BIS
PBoC confirms Russian swap transactions
Central banks of China and Russia disclose "several currency swap trades" since October, but no details
ECB takes steps to discourage trading on euro reference rate
The European Central Bank delays publication of the euro rate until 15:00 GMT and warns it may delay a whole day if trading activity linked to the rate does not decline
Carney pledges to push BoE FX investigations all the way
Carney pledges to get to the bottom of allegations that BoE condoned market manipulation in FX markets
Independent Scotland must cede some sovereignty to keep sterling
Bank of England governor Mark Carney warns of tough choices ahead for Scotland if it goes ahead with independence but looks to keep the pound
Depositors will trust EU guarantee despite Cyprus, says BdF official
Policy-makers have incentive to accelerate deposit guarantee plans, says Sylvie Matherat of the Banque de France