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States debate regulating digital currency

Posted on 29 July 2014 by VRS  |  Email |Print

Now that consumers can use digital currencies like bitcoin to buy rugs from Overstock.com, pay for Peruvian pork sandwiches from a food truck in Washington, D.C. and even make donations to political action committees, states are beginning to explore how to regulate the emerging industry.
Digital currencies — also known as virtual currencies or cash for the Internet —allow people to transfer value over the Internet, but are not legal tender. Because they don’t require third-party intermediaries such as credit card companies or PayPal, merchants and consumers can avoid the fees typically associated with traditional payment systems………………………………………..Full Article: Source

Global Currency Trading Falls Amid Volatility Drop, Market Probe

Posted on 29 July 2014 by VRS  |  Email |Print

Foreign-exchange volumes in the U.S., U.K. and Australia fell in April from a year earlier, according to reports from the world’s biggest central banks, amid subdued price swings and a probe into trading activity. Average daily currency turnover in North America was $811.1 billion, a 20 percent drop from a record $1 trillion in April 2013 and a 0.6 percent decline from October, the Federal Reserve-sponsored Foreign Exchange Committee said in a statement on its website, citing a twice-yearly survey.
In the U.K., April’s $2.4 trillion in turnover was 6 percent below the record high of $2.6 trillion a year earlier, the Bank of England’s Foreign Exchange Joint Standing Committee said. Daily U.K. trading rose 7 percent from October………………………………………..Full Article: Source

China Currency Gaining Among American Corporations

Posted on 28 July 2014 by VRS  |  Email |Print

Here’s a good one for those who think the dollar’s days are numbered. A survey released last week by HSBC Global says more U.S. multinationals are closing trade transactions in…you guessed it…the Chinese yuan.
Of course, this sort of news is right up HSBC’s alley. They are one of the premier financial centers in Hong Kong, where much of the off-shore Chinese currency transactions take place. It’s like a dream come true for the old colonial bank: the yuan increasingly being taken seriously as a viable trade currency………………………………………..Full Article: Source

Virtual Currency Clashes With The Real World

Posted on 28 July 2014 by VRS  |  Email |Print

Last Thursday, the Superintendent Of Financial Services for the state of New York, Benjamin M. Lawsky, proposed regulations for virtual currency companies operating in the state. Lawsky proposed a “BitLicense” plan, which includes rules on consumer protection, the prevention of money laundering, and cybersecurity. It is the first such proposal by a state to create guidelines specifically for virtual currency.
“We have sought to strike an appropriate balance that helps protect consumers and root out illegal activity – without stifling beneficial innovation,” Lawsky said in a statement. “Setting up common sense rules of the road is vital to the long-term future of the virtual currency industry, as well as the safety and soundness of customer assets.”……………………………………….Full Article: Source

Strong Currency Hits Corporate Profits in South Korea

Posted on 25 July 2014 by VRS  |  Email |Print

South Korea’s corporate sector reported disappointing profits Thursday due to a strong local currency that’s making it harder to compete in overseas markets at a time of lackluster global growth.
Hyundai Motor, SK Hynix Inc., a chip maker and steelmaker Posco all blamed the currency for sizeable declines in net profits during the second quarter. LG Electronics Inc., whose net profit doubled in the quarter due to a revival of its smartphone business, said profits would have been larger still if the won hadn’t been so strong………………………………………..Full Article: Source

U.K. Talks on Currency-Rigging Settlement Accelerate

Posted on 25 July 2014 by VRS  |  Email |Print

Talks to reach the first settlement in the currency-rigging probe are accelerating, with Britain’s markets regulator preparing to reach a deal with a group of banks this year, people with knowledge of the situation said.
The Financial Conduct Authority is in negotiations with banks including Barclays Plc, Citigroup Inc., JPMorgan Chase & Co. and UBS AG, said the people, who asked not to be identified because the discussions are private. Royal Bank of Scotland Group Plc and HSBC Holdings Plc may also be part of the group settlement, one of the people said………………………………………..Full Article: Source

Lithuania gets final approval to adopt euro currency

Posted on 24 July 2014 by VRS  |  Email |Print

EU ministers have given the final stamp of approval for Lithuania to join the eurozone next year. Amid fears of unjustified price hikes, the Baltic state will be the 19th nation to adopt the single currency.
Lithuania’s adoption of the euro currency was finalized on Wednesday as European Union ministers gave the green light for the Baltic State to join the bloc on January 1, 2015. The ministers’ approval was the final hurdle in Lithuania’s accession process into the eurozone………………………………………..Full Article: Source

The currency conundrum

Posted on 24 July 2014 by VRS  |  Email |Print

The European Central Bank (ECB) is under pressure from eurozone politicians to introduce quantitative easing (QE) to reduce the value of the euro against the dollar. Politicians say a fall of 10 per cent from $1.35 to $1.20-1.25 is needed to help eurozone companies export and tackle low inflation.
But not everyone is convinced a European version of QE would weaken the euro and, in the meantime, the strength of the euro and sterling against the dollar (and emerging market currencies) is having a major impact on investments………………………………………..Full Article: Source

Could GBP/USD Exchange Rate Tumble on Stronger US Currency?

Posted on 23 July 2014 by VRS  |  Email |Print

Currency News UK - Pound to Dollar Currency Predictions: will cable tumble into the 1.5000’s? Big news stories dominated last week’s session, with the shooting down of Malaysia Airlines flight MH17 and the international reaction to it, along with the ongoing situation in Iraq and an escalation of violence in Gaza. The latest GBP USD exchange rate today trades at 1.70669.
In amongst all of these risk events came a set of interesting comments from US Federal Reserve Chair Janet Yellen which could prove to have a marked effect on the relative value of the US Dollar during coming months………………………………………..Full Article: Source

Tedious Journey towards W’African Single Currency

Posted on 23 July 2014 by VRS  |  Email |Print

Since 1987 when the Economic Community of West African States (ECOWAS) Monitoring Cooperation Program (EMCP), saddled with the responsibility of introducing a common currency in the sub-region, was adopted, the body has continued to push for the implementation of the policy.
Those involved in this project strongly believe that a common currency for the West African Monetary Zone (WAMZ) would facilitate trade in the region and also stimulate growth. The proposed currency, which has been christened ‘eco,’ according to the plan, will be initially introduced in the member countries of WAMZ………………………………………..Full Article: Source

Scotland Currency Union? ‘It’s A Dead Parrot’

Posted on 22 July 2014 by VRS  |  Email |Print

The idea Scotland would be able to hold on to the pound in the event of independence is a “dead parrot”, MPs have warned. The country’s first minister was told he urgently needed to come up with a plan B on how Scotland would proceed without a “currency union” if there was a “yes” vote in just two months’ time.
A report from the Scottish Affairs Committee cautioned the Scottish Government there was no way there would be a formal deal for an independent Scotland to continue using sterling………………………………………..Full Article: Source

China and Switzerland sign bilateral currency swap line

Posted on 22 July 2014 by VRS  |  Email |Print

The central banks of China and Switzerland have struck a bilateral currency swap agreement, a move that advances the international use of the renminbi and boosts Switzerland’s hopes of becoming a trading hub for the Chinese currency.
Under the terms of the deal, signed in Beijing on Monday by Zhou Xiaochuan, governor of the People’s Bank of China, and Thomas Jordan, chairman of the Swiss National Bank, renminbi and Swiss francs can be purchased and repurchased between the two central banks, up to a limit of Rmb150bn or SFr21bn………………………………………..Full Article: Source

Independent Scotland needs new currency – MPs

Posted on 21 July 2014 by VRS  |  Email |Print

A stand-alone Scottish currency would be the best way forward for the country after independence, a report by MPs has suggested. The SNP government wants to share the pound with the UK in a currency union after independence, keeping the Bank of England safety net.
This has been ruled out by all the main parties at Westminster, and today’s report by the Scottish affairs select committee says there will be no currency union “of any kind”. The report says First Minister Alex Salmond’s Plan B for currency is “sterlingisation” – whereby Scotland would use the pound in the same way that Panama uses the US dollar, without formal links………………………………………..Full Article: Source

Indian rupee third on fake foreign currency list in Switzerland

Posted on 21 July 2014 by VRS  |  Email |Print

As a debate continues on alleged black money of Indians in Swiss banks, the authorities in Switzerland have come across a significant quantum of fake Indian rupee notes in their country — the third highest for any foreign currency after Euro and the US dollar.
According to the latest counterfeit currency statistics released by Switzerland’s Federal Office of Police (Fedpol), the number of fake Euro notes seized in the year 2013 stood at 2,394, while there were 1,101 fake US dollar bills………………………………………..Full Article: Source

Is Bitcoin a bubble?

Posted on 21 July 2014 by VRS  |  Email |Print

Bitcoin is still perceived by financial professionals as a possible bubble, a poll by Bloomberg has shown: Bitcoins, which lost 45% of their value after skyrocketing to more than $1,100 last year, are poised to tumble further, according to the latest Bloomberg Global Poll of financial professionals.
55% of those surveyed said the virtual currency trades at unsustainable, bubble-like prices, according to the quarterly poll of 562 investors, analysts and traders who are Bloomberg subscribers. Another 14% said it’s on the verge of a bubble. Only 6 percent of respondents said a bubble isn’t forming. The remaining 25 percent were unsure………………………………………..Full Article: Source

New York first state to propose regulations for virtual currency

Posted on 18 July 2014 by VRS  |  Email |Print

New York became the first U.S. state on Thursday proposed establishing rules for firms involved in receiving, transmitting and storing virtual currency. The proposal by the Department of Financial Services would establish a so-called BitLicense.
Merchants and consumers who use the virtual currency such as Bitcoin solely to buy and sell goods and services wouldn’t need a license. However, those buying and selling virtual currency as a business would………………………………………..Full Article: Source

New Czech Virtual Currency Launched

Posted on 18 July 2014 by VRS  |  Email |Print

Czechs will be the latest group of European consumers with a digital alternative to the local hard currency if a newly launched virtual currency takes root. A group of Czech individuals with broadcast and media backgrounds Thursday unveiled Czech Crown Coin, or CZC, a digital, cryptocurrency akin to globally known Bitcoin, with the goal of supporting Internet businesses in the Czech Republic.
Ladislav Faith, who is leading the project and by day is a television cameraman based in Prague, said the goal is to create a Czech alternative to both cash transactions and to other global virtual currencies………………………………………..Full Article: Source

U.S. gold dealer launches first digital currency backed by bullion

Posted on 17 July 2014 by VRS  |  Email |Print

U.S. precious metals dealer Anthem Vault Inc. said on Wednesday it has launched the first digital currency backed by physical gold, with an aim to increase the use of bullion as an accepted form of electronic money. Las Vegas-based Anthem said it will launch 10 million “INNCoins” backed by 100 grams (3.5 ounces) of gold, with all coins expected to be in circulation by July 2015.
“It should make gold more acceptable as a form of currency by combining its appeal as a store of value and a much more efficient medium of exchange,” said Anthem Blanchard, chief executive of Anthem Vault, who previously worked at online precious metals market GoldMoney………………………………………..Full Article: Source

5 money-saving tips for exchanging currency

Posted on 17 July 2014 by VRS  |  Email |Print

Headed overseas for summer vacation? It’s easy to get hit with extra fees and expensive exchange rates when switching currencies. Some currency exchange tables in airports and tourist areas offer bad rates, taking more of your money. And some credit cards and banks can add fees when you buy something with your card.
Your best bet is to bring a credit card that doesn’t charge currency exchange fees and some cash for backup. Most purchases should be done on the credit card, says James Gambaccini, a certified financial planner at Acorn Financial Services. That’s because credit cards offer fraud protection. If you lose cash, or it gets stolen, you won’t get it back………………………………………..Full Article: Source

Global watchdog unveils plan to stop currency manipulation

Posted on 16 July 2014 by VRS  |  Email |Print

Global regulators have published details of their plans to overhaul foreign-exchange benchmarks in response to allegations that traders colluded to manipulate rates in the US$5.3 trillion-a-day currency market.
The Financial Stability Board (FSB) proposed changes to the way the WM/Reuters rates are calculated, including extending the length of the one-minute windows on which the benchmark is based, and making firms set up systems to address potential conflicts of interest with their clients. The Basel-based FSB set an August 12 deadline for comments on the plan………………………………………..Full Article: Source

Action Is In Commodities, Not Currencies

Posted on 16 July 2014 by VRS  |  Email |Print

Currencies moved in a narrow range yesterday. Within the USD moved only ±0.1% or more against four G10 currencies, falling vs CAD and rising vs NZD, JPY and GBP. Commodities were more volatile. Gold and silver, which fell in late European trading Monday, failed to register any bounce, while corn, wheat and several other agricultural commodities fell further.
Traders looking for volatility might want to look at those markets, although as prices there are determined largely by the weather and my training is in economics, I have little insight to share about them………………………………………..Full Article: Source

If China Stops Being A Currency Manipulator Will The Yuan Rise Or Fall?

Posted on 15 July 2014 by VRS  |  Email |Print

As we know every year certain very angry US politicians get together to insist that the President must declare China to be a “currency manipulator”. The thought is that the country artificially keeps its currency low in value against the dollar, thereby boosting exports from China to the US.
This is presumed to be to the detriment of US industry (although those politicians do overlook how it benefits US consumers). There may even be some truth to the complaints. But what interests is, well, imagine that China became entirely free market about the value of the yuan? Just allowed anyone who wanted to to buy and or sell how ever much they wanted, to be allowed to ship money in or out of China as they wished? The assumption is that the yuan would climb in value but I’m not so sure………………………………………..Full Article: Source

Prepare for This Seismic Currency Shift (and Profit)

Posted on 15 July 2014 by VRS  |  Email |Print

We all know the U.S. dollar is the de facto world reserve currency. And if you’ve been reading my column for a while, you also know its status is being seriously challenged. China and Russia have taken the biggest steps to that end so far.
But it seems we may already be in the planning stages to consolidate currencies, with the ultimate goal of establishing a single currency for the entire planet. Hard to envision, but the signs are there. That’s something not meant to benefit you or me, but there are ways to leverage this intensifying trend to your advantage………………………………………….Full Article: Source

Indian rupee to be the major reserve currency that will be traded internationally

Posted on 14 July 2014 by VRS  |  Email |Print

A secret internal assessment by Britain’s ministry of defence (MoD) has pegged the Indian rupee to be the major reserve currency that will be traded internationally in the next two decades.
The assessment available with TOI says that by 2040, the Rupee will challenge China’s Renminbi as the strongest global currency. At present however, given the strength of the Chinese economy in the near term, the Renminbi (RMB) will be the most traded global currency, rivalled only by the US dollar out to 2030………………………………………..Full Article: Source

Australian central bank: Currency too high

Posted on 14 July 2014 by VRS  |  Email |Print

Investors may be underestimating the risk of a “material decline” in the Australian dollar, the governor of Australia’s central bank was quoted as saying Friday.
“It continues to be my view that on most standard metrics that you could devise, it’s hard to see how most of those metrics would have the Aussie dollar quite this high,” Glenn Stevens was quoted as saying in an interview with the Weekend Australian newspaper, according to a transcript of the interview published online………………………………………..Full Article: Source

China agrees to reduce currency intervention ‘as conditions permit’

Posted on 11 July 2014 by VRS  |  Email |Print

U.S. and Chinese leaders have agreed that China will reduce its intervention in the currency market when conditions are ripe, reaching an understanding on a prickly issue that has hurt ties between the world’s two biggest economies for years.
China’s Central Bank Governor Zhou Xiaochuan said on the sidelines of annual high-level talks between the two nations that China will “significantly” reduce its yuan intervention when some prerequisites are met. He did not give further details………………………………………..Full Article: Source

China Signs Currency Deals, Except in the U.S.

Posted on 11 July 2014 by VRS  |  Email |Print

In recent years, China has signed a flurry of currency deals with countries around the world. One notable absence: the U.S. The Chinese government has been pushing for a greater role for the tightly controlled yuan in global trade, investment and finance, as part of its effort to revamp the country’s creaky financial system and to one day challenge the U.S. dollar’s dominance in the international monetary system.
To promote the yuan on the world stage, Beijing has been trying to foster yuan-trading hubs outside the mainland by making it easier for foreign banks to obtain the yuan as well as to clear yuan-denominated transactions………………………………………..Full Article: Source

Democratic Senators Urge U.S. to Press China on Currency

Posted on 10 July 2014 by VRS  |  Email |Print

A pair of Senate Democrats on Wednesday called on U.S. officials meeting for high-level talks in Beijing to “decisively confront” Chinese officials over management of their currency, calling White House efforts to date “insufficient.”
In a letter timed to coincide with the latest round of the U.S.-China Strategic and Economic Dialogue, Sen. Charles Schumer of New York and Sen. Bob Casey of Pennsylvania said U.S. efforts to persuade China to allow market forces to determine the value of its currency aren’t working………………………………………..Full Article: Source

Why 2014’s hottest currency won’t lose its shine

Posted on 10 July 2014 by VRS  |  Email |Print

As the New Zealand dollar trades within striking distance of its post-float high, the trade that’s been on fire since mid-2013 looks unstoppable, analysts told CNBC. The kiwi was trading around $0.8820 early Thursday, just short of its post float all-time high of $0.8842 hit on August 1 2011, boosted by the move by credit rating agency Fitch to reaffirm the country’s AA rating and upgrade its outlook to positive from stable on Tuesday.
“As one of the only two currencies with any appreciable yield in the advanced industrialized universe, the kiwi has been the darling of the yield chasers and the upgrade by Fitch will only serve to reinforce its strength,” said Boris Schlossberg, managing director of BK Asset Management………………………………………..Full Article: Source

FAQ on the Essential Commodities Act

Posted on 09 July 2014 by VRS  |  Email |Print

The Essential Commodities Act (ECA) was enacted by the Central Government in 1955 to control and regulate trade and prices of commodities declared essential under the Act. The Act is again in the limelight, as the Government is making it more stringent while bringing onions and potatoes under its purview. Here are some facts about its provisions that you may want to know and explanations about how the Act works.
The Act empowers the Central and state governments concurrently to control production, supply and distribution of certain commodities in view of rising prices. The measures that can be taken under the provision of the Act include, among others, licensing, distribution and imposing stock limits. The governments also have the power to fix price limits, and selling the particular commodities above the limit will attract penalties……………………………………Full Article: Source

Currency Reserves Swell in Asia

Posted on 09 July 2014 by VRS  |  Email |Print

Asia’s central banks snapped up dollars and other currencies in June at the fastest pace since 2011, bringing total foreign-currency reserves to $7.47 trillion, the latest in a series of records, in an effort to fend off the impact of a wave of cheap global capital.
According to the latest data, holdings in Hong Kong, Singapore, South Korea and Taiwan all hit new highs, while Japan’s reserves rose to $1.28 trillion. Citigroup Inc. economists estimate that China will report a record $3.99 trillion in reserves within the next week……………………………………Full Article: Source

Currency wars: A strong euro is a problem entirely of the eurozone’s own making

Posted on 09 July 2014 by VRS  |  Email |Print

According to Fabrice Brégier, chief executive of Airbus’s passenger jet business, the euro is far too high. Quoted in this morning’s FT, he called on the European Central Bank to take immediate steps to devalue the currency by around 10 per cent against the dollar. His opinion echoes remarks by Sir Mike Rake, president of the CBI, about the pound sterling, which he similarly views as far too high.
It scarcely needs saying that race to the bottom, competitive currency devaluation is ultimately a zero sum game that benefits no one. Unfortunately, that hasn’t stopped several of the world’s major currencies from playing it. The US was first out of the hatches with central bank money printing (quantitative easing) in the immediate aftermath of the Lehman Brothers collapse, followed swiftly by the Bank of England……………………………………Full Article: Source

U.S. to fire early warning shot at China over currency

Posted on 08 July 2014 by VRS  |  Email |Print

The U.S. Treasury is expected to put pressure on China over recent weakness in its currency during high-level meetings in Beijing this week. Before leaving for the Beijing talks, Treasury Secretary Jacob Lew expressed concern over China’s foreign-exchange intervention. Lew said China seemed to follow a path of “two steps forward and part of a step back” on the exchange rate. Although the yuan has appreciated by 14% since 2010, it “still needs to appreciate more, it is undervalued,” Lew said.
Nicholas Borst, an economist with the Peterson Institute for International Economics, said that the U.S. wants to send “an early warning shot” at China in order to put a floor under depreciation. While some of the weakness of the yuan appears to be market driven, some is “policy-driven,” Borst added……………………………………..Full Article: Source

China Faces Yuan on Yuan as U.S. Decries Weak Currency

Posted on 07 July 2014 by VRS  |  Email |Print

Among the half-dozen U.S. Treasury officials traveling to Beijing for talks with their Chinese counterparts this week, Sharon Yuan will, as usual, carry the heaviest suitcase.
Yuan’s stuffed gray Travelpro befits the scope of her two jobs. As head of the department’s trade and investment policy and its chief China coordinator, she often arrives before her colleagues and makes multi-city stops. After the July 9-10 U.S.- China Strategic and Economic Dialogue, she’s off to Brussels for trade talks………………………………………..Full Article: Source

Global body raises concerns about virtual currencies

Posted on 07 July 2014 by VRS  |  Email |Print

The real and potential money laundering and terrorism financing risks of virtual currencies have been highlighted by the Financial Action Task Force (FATF), an inter-governmental body established by the Group of Seven that sets policies and standards on anti-money laundering and combating terrorist financing.
In a report on virtual currencies FATF notes virtual currencies such as Bitcoin are potentially vulnerable to money laundering and terrorist financing for many reasons. FATF last year recognised “significant progress” by New Zealand in addressing previously identified deficiencies following the coming into force of our Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act………………………………………..Full Article: Source

Colombia’s currency strikes again

Posted on 04 July 2014 by VRS  |  Email |Print

It all seems to be going so well for Colombia: its national football team has reached the quarter finals of the World Cup for the first time, the economy grew by a startling 6.4 per cent in the first quarter, while unemployment hit a new low last week at 8.8 per cent, and economists say confidence is riding high.
But officials appear to be worrying once again about one of the hazards of economic success: the appreciation of the peso………………………………………..Full Article: Source

China Takes Step Toward Freeing Currency from State Control

Posted on 04 July 2014 by VRS  |  Email |Print

China has permitted banks to freely set their own exchange rates for the renminbi against the dollar in over-the-counter transactions — another step toward freeing the exchange rate from government control.
Banks were previously required to price the exchange rate that they offered clients within 3 percent in either direction of the Chinese central bank’s midpoint on a given day………………………………………..Full Article: Source

South Korea Issues Rare Warning on Currency Surge

Posted on 03 July 2014 by VRS  |  Email |Print

South Korea’s financial authorities issued a rare warning on Wednesday about the surging Korean currency as the won hit a six-year high against the dollar, which threatens to erode the nation’s export competitiveness. The won has risen about 10% in the past year and is the best-performing Asian currency of 2014.
In a joint message, the Bank of Korea and the finance ministry said they were concerned “about the possibility of overly one-sided moves among market participants,” adding that financial authorities were watching for any unusual trading patterns. The joint warning—the first in eight months—put traders on watch for possible won-weakening intervention by the central bank………………………………………..Full Article: Source

Hungary’s Currency Weakens on Government Plan to Convert Loans

Posted on 02 July 2014 by VRS  |  Email |Print

Hungary’s currency weakened sharply on Tuesday in reaction to the government’s latest plan to ease the debt burden for foreign-currency borrowers at the expense of banks, with a European Union warning that the country may return next year under strict budget oversight adding to the forint’s slide.
The Hungarian forint fell about 1% against the euro intraday, with the euro trading above 312 forints by the end of the day after opening around 309 and 310 forints. The forint weakened as implications of the government’s plan to convert foreign-currency loans into forints at below-market rates sunk in, said Peter Attard Montalto, economist at Nomura………………………………………..Full Article: Source

US says China’s currency undervalued

Posted on 02 July 2014 by VRS  |  Email |Print

US Treasury Secretary Jacob Lew says China’s yuan currency remains undervalued, a longstanding sore point that will be raised at next week’s high-level bilateral negotiations in Beijing. Lew said that the yuan, or renminbi, has appreciated 14 per cent since 2010, when China began taking small steps to allow its currency to trade more freely.
‘It still needs to appreciate more. It’s undervalued,’ said Lew, who will lead the US economic team at the US-China Strategic and Economic Dialogue (SED) in Beijing next Monday and Tuesday………………………………………..Full Article: Source

Hong Kong Defends Currency Peg for First Time Since 2012

Posted on 02 July 2014 by VRS  |  Email |Print

Hong Kong’s de facto central bank stepped in for the first time since December 2012 to prevent the city’s currency from rising against the U.S. dollar, as demand rose on commercial activities.
The Hong Kong Monetary Authority said it bought $2.099 billion within the past 24 hours at HK$7.75 a dollar, the upper limit of a convertibility range that triggers intervention. The purchases, disclosed on the authority’s Bloomberg page, were confirmed by phone………………………………………..Full Article: Source

California Lifts Ban on Bitcoin

Posted on 01 July 2014 by VRS  |  Email |Print

Technically, all transactions using digital or alternative currencies had been illegal in California until Monday. California lawmakers approved a bill Monday that lifted an outdated ban on the use of bitcoin and other alternative currencies, as more states seek to clarify and revise virtual currency laws.
AB 129, which Governor Jerry Brown had signed on Saturday, will ensure that “various forms of alternative currency such as digital currency” will be legal in purchasing goods and transmitting payments, according to the bill’s text. The bill reflects the growing use of digital currencies, revising Section 107 of California’s Corporations Code that prohibits use of “anything but the lawful money of the United States.”……………………………………….Full Article: Source

Businesses said to refuse new Kuwaiti currency

Posted on 01 July 2014 by VRS  |  Email |Print

Some businesses have reportedly refused to accept new bank notes circulated in Kuwait from Sunday. Customers have complained that some sales people were unaware that the new plastic notes had been introduced, blaming a lack of awareness and preparation.
Kuwait joined only a handful of countries in the world to use the more durable banknotes, which are made from polymer and last significantly longer than paper currency because they are resistant to heat, water, humidity and dust………………………………………..Full Article: Source

China Expands Trial to Liberalize Foreign-Currency Deposit Rates

Posted on 27 June 2014 by VRS  |  Email |Print

China’s central bank took a small step toward its long-promised liberalization of interest rates by partially removing a cap on foreign-currency deposit rates in Shanghai. The incremental move is part of a longer-term bid to introduce more competition within China’s banking system.
The People’s Bank of China said Thursday it would expand a pilot program to all of Shanghai involving small-account foreign-currency deposit rates that was previously confined to Shanghai’s free-trade zone………………………………………..Full Article: Source

Czechs to Keep Currency Cap for Longer on Low Inflation

Posted on 27 June 2014 by VRS  |  Email |Print

Czech policy makers kept their koruna ceiling in place for a fifth meeting and said they won’t scrap the limit on the currency’s gains before the second quarter of 2015 due to slower inflation (CZCPYOY) at home and abroad.
The central bank kept the benchmark interest rate at 0.05 percent for a 13th meeting, matching the estimates of all 18 analysts in a Bloomberg survey. Policy makers also reaffirmed a commitment not to let the koruna “strengthen too much” beyond 27 per euro, the limit on the currency pair set on Nov. 7………………………………………..Full Article: Source

Brazil Real Leads Global Gains as Support for Currency Extended

Posted on 26 June 2014 by VRS  |  Email |Print

Brazil’s real climbed to a one-month high and led gains among major currencies after the central bank said it will extend daily intervention for at least another six months as part of an effort to curb inflation.
The real rose 0.8 percent to 2.2078 per U.S. dollar at the close of trade in Sao Paulo, the strongest since May 21. The rally was the biggest among the 31 most-traded currencies tracked by Bloomberg………………………………………..Full Article: Source

Is Indonesia Facing a Currency Crisis?

Posted on 26 June 2014 by VRS  |  Email |Print

Indonesia’s rupiah is headed south, fuelled by rising oil prices, and is nearing the 2008 lows once again. The USD/IDR is currently trading a little below the record 12,500 mark touched in 2008, but the currency situation now is not as grave as it was during the 2008 crisis, at least for corporate investors.
At the 2008 trough of 12,503, the rupiah was about 25% weaker from its end-2007 level. And the JSE composite, Indonesia’s benchmark stock index, had fallen nearly 35% during the same period………………………………………..Full Article: Source

De-dollarization continues: China starts direct currency trading with UK

Posted on 25 June 2014 by VRS  |  Email |Print

China is pursuing its quest to strip the US dollar of its global reserve currency status. After establishing the mechanisms for direct ruble-yuan trading and settlement, Beijing is now kicking the dollar out of its transactions with the Great Britain.
Several years ago it was impossible to imagine a world in which direct currency trading between European countries and China would be possible. Even today most cross-currency trading is done via the US dollar……………………………………….Full Article: Source

Brazilian Real’s Volatility Falls to Year Low Amid Intervention

Posted on 25 June 2014 by VRS  |  Email |Print

Brazil’s currency volatility dropped to a one-year low amid speculation the central bank will sustain the pace of its program to support the real. Three-month historical volatility fell 0.5 percent to 10.62 percent at the close of trading in Sao Paulo, the lowest since June 2013. The currency retreated 0.3 percent to 2.2250 per U.S. dollar.
The central bank announced June 6 that it was extending its foreign-exchange market intervention to support the real and limit import-price increases. The program had initially been scheduled to end this month. Brazil sold $198.7 million of foreign-exchange swaps today and rolled over contracts worth $494.3 million………………………………………..Full Article: Source

Commodity-Based Currencies Gain After China Data Show Growth

Posted on 24 June 2014 by VRS  |  Email |Print

Commodity-based currencies held on to most gains made against the dollar and the yen after a surprise jump in factory activity for China, the world’s second-largest economy, pointed to increased demand for the natural resources produced in Australia and New Zealand.
The Australian dollar rose 0.3% against the greenback to US$0.9418, and the yen slipped 0.1% against the Aussie to ¥95.97. The New Zealand dollar rose 0.1% versus the buck to US$0.8710, while the yen traded flat versus kiwi, as the New Zealand currency is also called, at ¥88.75………………………………………..Full Article: Source

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