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...But two people familiar with the matter said Safe officials privately communicated an easing of the informal limits on transactions in China’s interbank market to foreign exchange brokers on Wednesday last...
...Suspension from Swift [the global interbank payments system] would cause friction but ultimately can be got around … Russia doesn’t have much external need to clear dollars except for oil and gas (which...
...So while large interbank settlements flow through ultra-safe central-bank run payments systems such as the Bank of England’s CHAPS, cross-border payments come with risk attached....
...He said that while a devaluation of the official rate would provide “a boost to fiscal revenues” while “possibly sending a positive signal to lenders”, it would not in itself “do much to curb FX pressures...
...As such, he said, the currency has become the “barometer of the efficacy of the policy response to corporate credit difficulties [and] interbank funding challenges”....
...What’s important is that by the time of Herstatt, banks processing large USD FX transactions were still inclined to use netted alternatives like the Clearing House Interbank Payments System (CHIPS) -- something...
...A Citi spokeswoman said: “As part of Citi’s FX investigation in 2014/5, Citi terminated Rohan Ramchandani....
...Morgan’s dominance in repo and FX clearing meant it had to hold more excess than other banks – its portfolio of excess reserves was the “Bakken Shale” of global dollar funding markets Anything that impacts...
...Sokin says that it offers “better FX rates than the market”, but that sounds a bit unspecific....
...According to research by Fair FX, the pre-paid currency card provider, it is not uncommon for airport money changers to charge 13 or 14 per cent above the interbank rate from consumers who walk up to their...
...TCX now has exposure to almost 60 hard to hedge currencies, such as the Sierra Leone, for which there is no local yield curve or interbank market, meaning TCX had to conduct its own macroeconomic modelling...
...Analysts said the Hong Kong dollar’s weakness was triggered by the widening gap between interbank-lending rates in Hong Kong and the US....
...After all, as its report said, “obligations incurred through FX swaps/forwards and currency swaps are functionally equivalent to secured debt”....
...In this way the eurodollar became the bridging currency for most FX activity, and in so doing over time created even more demand for eurodollar liquidity (now needed by the interbank market for its FX settlement...
..., gradually raising China’s policy rates and guiding market rates higher are intended by Chinese policymakers to ensure stability in the China-US yield spread, preventing potential capital outflows and FX...
...In the red corner is the incumbent: Swift, a 45-year-old interbank messaging service that handles half of the world’s high-value cross-border payments and is run as a co-operative owned by its thousands...
...Sue Trinh, head of Asia FX strategy at RBC Capital Markets, said it was “not particularly surprising” that the Hong Kong dollar had been weakening recently “given concerns of a China slowdown”....
...ECU is asking for HSBC’s interbank dealing tickets, deal log entries and any relevant Bloomberg instant messages for the three trades, including those of its London and New York proprietary trading desks...
...We have highlighted the difficulties faced by the PBoC in keeping a lid on the interbank system through June....
...In a regime where balance sheet is rationed repos are costly, and the more the banking system relies on repos to settle FX swap trades, the farther FX swap implied rates drift from the OIS curve and the...
...The approval of hedging tools including FX forwards, FX swaps, and currency swaps comes as policymakers are keen to broaden the mix of investors trading in China’s vast interbank bond markets, which are...
...market FX rates.”...
...FX netting, not liquidity, is the biggest issue Liquidity is limited as only certain players are permitted to trade FX in the interbank market....
...At one point, the benchmark rate for unsecured short-term loans between banks — known as the London Interbank Offering Rate, or Libor — was basically made up, as the now-infamous Tom Hayes tried to manipulate...
...“We believe 2017 will be a year of outflows from Hong Kong,” wrote Ronald Man, emerging Asia FX strategist at Bank of America Merrill Lynch last month....
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