News/Foreign Exchange
Average reported daily UK FX turnover hits record high
Daily turnover of $2,881bn in October 2019, up 2% from previous high of $2,821bn in April
Iceland boosts reserves despite volatility in 2019
Central bank carried out FX interventions to offset “abrupt weakening” of krona
Chile unexpectedly halts FX interventions
In December, interventions helped peso appreciate, but it has resumed downward trend
PBoC signs Laos currency settlement agreement
Deal comes as Chinese authorities push for greater global use of renminbi
Bank of Thailand grapples with baht appreciation
Central bank relaxes FX regulations and cuts rates as baht hits six-year high
Exchange rate pass-through patterns are changing – RBI paper
Pass-through in emerging markets is non-linear, asymmetric and falling, the authors find
BNP Paribas to launch e-FX pricing engine in Singapore
BNPP is latest bank to set up Singapore pricing engine; readies Cortex Live launch with AI and data tools
West Africa launches new currency in break with France
New ‘eco’ currency pegged to euro, but France will have less involvement in West African Economic and Monetary Union
First Ibor versus SOFR cross-currency swaps trades
Westpac and Citi strike BBSW/SOFR trade in landmark moment for Australian market
FX market growing, but more risky – BIS review
Reduced reliance on PvP and heightened fragmentation threaten market resilience
Green FX hedging tipped to grow after BNPP/Siemens Gamesa deal
If the energy company misses ESG score it will pay a “sustainability premium” towards forestry projects
Greater exchange rate flexibility warranted in Peru – IMF
Limiting interventions would help reduce dollarisation further, says fund
BidFX eyes expansion in execution tools and algos
Buy-side focus on FX exposure will drive development
Chile’s FX intervention likely to stabilise peso
But much depends on the reform programme the government chooses to adopt
Buy side still not adopting FX Global Code – Debelle
FX committee wants asset managers to embrace standards; shifts focus to algo trading
Chile to sell $400m a day in first week of FX interventions
Central bank selling $200 million in spot market and $200 million in 30-day forwards
Chile launches biggest FX intervention in 20 years
Chilean peso has fallen by 14% against dollar since mid-October amid massive street protests
Brazil sells dollars as real falls to record low
Currency declines 11.3% against dollar since July, as central bank cuts interest rates by 150bp to new low of 5%
Call for clarity on last look rejections
Asset managers say holding periods “far in excess” of what is necessary for risk checks
Buy-side traders cannot be passive with algo execution
Traders need to be proactive and ensure in-depth monitoring throughout life of an order, panellists say