For much of this year, the dollar, oil prices, and economic conditions largely behaved as the U.S. Federal Reserve had expected, allowing policymakers to plot further interest rate increases. Not anymore. Since Britain's June 23 vote to leave the European Union, every piece of economic, such as Friday's jobs report, data comes with a question mark - how much does it reflect domestic economic developments and how much the short and long-term implications of an economic reordering that may take years to play out. For Fed policymakers it means balancing the mainly positive flow of U.S. indicators against the risk that major trading partners fall into recession, the dollar surges again, or the terms of Britain's divorce stress the global financial system. With past overseas events of similar importance, such as the euro zone debt crisis, it has taken the Fed months to get clarity. Brexit may prove just as difficult to decipher, already helping lift the dollar and drive U.S. Treasury … [Read more...] about Fog of Brexit clouds outlook for central banks seeking clarity
United states central bank
Confronted with a plunge in its stock markets last year, China's central bank swiftly reached out to the U.S. Federal Reserve, asking it to share its play book for dealing with Wall Street's "Black Monday" crash of 1987. The request came in a July 27 email from a People's Bank of China official with a subject line: "Your urgent assistance is greatly appreciated!" In a message to a senior Fed staffer, the PBOC's New York-based chief representative for the Americas, Song Xiangyan, pointed to the day's 8.5 percent drop in Chinese stocks and said "my Governor would like to draw from your good experience." It is not known whether the PBOC had contacted the Fed to deal with previous incidents of market turmoil. The Chinese central bank and the Fed had no comment when reached by Reuters. In a Reuters analysis last year, Fed insiders, former Fed employees and economists said that there was no official hotline between the PBOC and the Fed and that the Chinese were often reluctant to engage at … [Read more...] about China central bank to Fed: A little help, please?
Investors will cast a wary eye on the latest gauges of the United States' economic health this week, while troubled Europe shows early signs of turning the corner. As finance ministers and central bankers from the Group of 20 top economies gather in Washington, on the sidelines of the International Monetary Fund's Spring meeting, they view a subdued global landscape where even the United States' prospects seem tarnished. For a change, however, there are reasons for hope in the euro currency bloc, despite still low growth and high unemployment. European Central Bank President Mario Draghi will be able to claim an early success in the bank's fledgling money printing program with figures on Friday set to confirm that falling prices throughout the 19-country euro zone are beginning to stabilize. Bank lending too is improving. "We're seeing the opposite of 2014," said Carsten Brzeski, an economist at ING bank. "Now there are more doubts about the U.S. and China than the euro zone." The … [Read more...] about United States loses sparkle as Europe shows signs of hope
Vietnam's central bank will acquire all shares in a small, loss-making bank in Hanoi, a unit of Ocean Group Co, to ensure the banking system's safety, the second move in less than two months as it seeks to clean up the fragmented sector. "The State Bank has announced its compulsory purchase of all the shares owned by existing shareholders in Dai Duong (Ocean) Commercial Bank," the State Bank of Vietnam said in a statement on Saturday. The takeover came after serious financial losses at Dai Duong bank and is aimed at "preventing Dai Duong's weakness from spreading to other banks", the statement said. Commercial banks in Vietnam reported bad debts at 3.49 percent of their outstanding loans in January 2015, up from 3.25 percent the previous month, a state-run newspaper quoted a central banker on Saturday as saying. VietinBank, Vietnam's biggest partly private lender, has been appointed to join the management of Dai Duong Bank, the central bank said. In January the central bank said it … [Read more...] about Vietnam central bank says taking over small lender
Vietnam is forecast to receive between $13 billion and $14 billion in overseas remittances this year, up from $12 billion in 2014, the central bank said on Monday. Foreign exchange supply to Vietnam is also expected to be boosted from rising foreign direct investment and investment in equities, which could help lead to a surplus of $8 billion in the country's balance of international payments, the State Bank of Vietnam said in a statement. Remittances from Vietnamese overseas remains a key part of the country's economy, equivalent to about 8 percent of gross domestic product. More than half of the capital comes from the United States. … [Read more...] about Vietnam’s remittances to hit $13-$14 bln in 2015: central bank