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China joins global central bank gold rush as its foreign exchange reserves stabilise

China has joined a global central bank gold rush in the last two months by increasing its official gold reserves, even though the purchase remains modest compared to the volume of the mainland’s foreign exchange reserves, according to data released by the People’s Bank of China on Monday. The country’s gold reserves rose slightly to 59.94 million ounces at the end of January from 59.56 million ounces at the end of December 2018, marking a second straight month of increase. The latest gold purchase by the world’s second-largest economy came…

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India’s central bank delivers pre-election rate cut prime minister Narendra Modi was hoping for

India’s new central bank chief delivered an unexpected interest rate cut, providing Prime Minister Narendra Modi with the kind of stimulus he needs to stoke economic growth in an election year. In a sharp reversal from October, when the Reserve Bank of India took rate cuts off the table, governor Shaktikanta Das – who took office in December – opened the door to more policy easing and brought growth firmly back onto the Monetary Policy Committee’s agenda. That was a departure from his predecessor Urjit Patel, whose singular aim was…

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Donald Trump’s pick to head the World Bank means US-China rivalry has a new front: development aid

US President Donald Trump and his nominee to lead the World Bank, David Malpass, have an issue with the manner in which the bank and other multilateral development banks do business. Specifically, Malpass objects to the size, intrusiveness and entrenched interests within these institutions, and the very idea that such banks, which are supposed to be all about promoting development and alleviating poverty, continue to lend to the world’s second-largest economy, with the world’s largest aggregation of foreign exchange: China. While China has been busy becoming the leading de facto…

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How the People’s Bank of China is changing direction and going all out to save the private sector

While the market is trying its best to guess how many cuts in the reserve ratio requirement to expect in China this year, the Chinese central bank has managed to tweak its strategy. Facing the pressure of a slowdown in the Chinese economy and dissatisfaction among corporations, especially private firms, the People’s Bank of China rolled out two new monetary policy instruments in late January.  On January 23, the Chinese central bank deployed its targeted medium-term lending facility for the first time, with tenors of up to three years and…

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Year of the Piggy Bank? Mints from Canada to Singapore hope to cash in on Year of the Pig with collectible coins

More than a decade ago Aries Cheung, a Toronto-based artist, graphic designer and filmmaker, was approached by a representative from the Royal Canadian Mint. Would he like to enter a competition for a new series of coins to celebrate the Lunar New Year? The 58-year-old Hong Kong native won, and this year’s coin celebrating the Year of the Pig will be his 11th design from that initial competition. He’ll celebrate his birth year – the Year of the Rat – with next year’s coin, the final of his initial designs.…

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China 

People’s Bank of China sets up department to improve financial oversight

China’s central bank has set up a department to oversee and eliminate financial risks, as part of its restructuring of departments and personnel. The People’s Bank of China (PBOC) established the macro-prudential management bureau to draft rules, monitor and handle financial systemic risks, and advise on currency issues including yuan convertibility, according to a statement published by the State Commission Office of Public Sectors Reform. The new agency will take over some of the duties of the Monetary Policy II Department, which has been disbanded. The statement reaffirms the central…

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Vietnam 

Central bank to ease lending rates – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

The State Bank of Vietnam (SBV) buying net US$4 billion in January may be the way to lower Vietnamese đồng lending rates.— Photo cafef.vn HÀ NỘI — The State Bank of Vietnam (SBV) buying net US$4 billion in January may be the way to lower Vietnamese đồng lending rates. The data was announced at the Government’s monthly meeting on Thursday. To achieve such a result, the central bank in late November 2018 sold greenback futures that…

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Vietnam 

Central bank net injected $2b to meet high capital demand at year-end – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

The central bank net injected more than VNĐ47.5 trillion (US$2 billion) into the open market operation. — Photo ABBank Viet Nam News HÀ NỘI — The State Bank of Việt Nam (SBV) net injected more than VNĐ47.5 trillion (US$2 billion) into the open market operation (OMO) last week to support the liquidity of the banking system amid rising capital demands at the end of the year. According to the latest report from the Saigon Securities Company, the injection was foreseeable as the SBV also pumped a large amount of…

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Vietnam 

Moody’s rates Nam Á Bank for first time, stable outlook – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

Customers conduct transactions at a branch of Nam Á Bank. The bank was given a B2 stable outlook rating by Moody’s. – Photo ndh.vn Viet Nam News HÀ NỘI — Credit ratings agency Moody’s Investors Service has assigned its first ratings and assessment for Việt Nam’s Nam Á Commercial Joint Stock Bank, giving it a B2 stable outlook. According to Moody’s, the ratings assigned to Nam Á Bank were based on the progress the bank had made on recovering problem assets, and an improvement in profitability. At the…

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Why China’s economic policies are less of a concern than those of the Fed and European Central Bank

Despite the gloom surrounding China’s economy – which, according to official data, grew in the last quarter of last year at its weakest pace since 2009 – sentiment in financial markets has improved noticeably since the start of this year. Having plummeted 25 per cent in 2018, the Chinese large-cap CSI 300 index is up 5.8 per cent, while the yuan has risen to its strongest level against the US dollar in six months. Investors’ willingness to disregard poor economic data stems partly from external factors, notably recent statements from…

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