archivecentral banks

Some of emerging Asia’s biggest central banks look to be dialling back their interventions in the currency market.The central banks of India and Malaysia have reduced the size of some derivatives positions they use to weaken their currencies. Taiwan has allowed its currency to surge against the US dollar in recent weeks and dropped hints it would be comfortable with more if the moves were “orderly”. South Korea’s giant national pension fund has ended its five-month support of the won.A major reason for these moves is a simple change in...

A recent report by the European Central Bank reveals that gold has overtaken the Euro as the second-highest foreign exchange reserve asset for the central banks. Well, this should not shock any of us. Gold has drawn a lot of attention from central banks in the past many years. It was only a matter of time before central bankers preferred gold to at least some of the paper currencies. Having said that, this is still a very surprising development. And it actually means a lot! You see, the dollar’s share...

The U.S. dollar faced struggles on Tuesday, marked by impatient investors awaiting progress on expected U.S. trade deals. Asian currencies took a breather after an unprecedented two-day rise, emphasizing the dollar's fragility. The yen saw the dollar drop 0.57% to 142.87, while the British pound gained 0.56% to $1.3371.Jane Foley, head of FX strategy at Rabobank, noted a decline in last week's optimism linked to potential trade deals. Market participants are growing concerned about company warnings regarding economic damage from tariffs. Recent investor optimism about potential U.S. deals slashing...

In a recent interview with Liberty and Finance, veteran investor Rick Rule, CEO of Rule Investment Media and former CEO of Sprott Asset Management, delivered a stark warning to those shorting silver, predicting a potentially "religious experience" for those caught on the wrong side of a short squeeze. Rule, a renowned expert in natural resource investments, shared his insights on the precious metals market, and central bank influence, and offered a glimpse into his upcoming natural resource investment symposium.Rule's comments, featured in the Liberty and Finance interview focused heavily...

(Bloomberg) -- Some of Asia’s biggest central banks are getting a painful refresher in economic theory. Monetary authorities in China, India and elsewhere have waged a prolonged campaign against the strong dollar, using a mix of official reserves and opaque derivatives trades to defend their currencies. But their moves have pushed up borrowing costs for local banks just when slowing economies need more liquidity. China’s overnight and seven-day repo rates surged in February, while bond investors took losses from a sharp rise in yields. Banking liquidity in India suffered its...