Asian policy-makers have been trying to balance currency management with controlling inflation. Rising inflation and rising currencies suggest policy makers have failed to get the balance right.
Latest articles from Payments
Bank-to-bank volumes no longer biggest FX driver
March 10, 2011Last year, customer volumes overtook interbank volumes in the foreign exchange market for the first time. Electronic and high-frequency trading help to account for the change, as does the rise of retail participants – but regulatory change is also helping to cement this trend.
Renminbi takes the slow road to domination
March 10, 2011The battle over the valuation of the Chinese renminbi has often been characterised by vitriolic debate and has seen a titanic clash between Washington and Beijing about the right level for the currency and the speed of appreciation. But efforts to internationalise the renminbi are already taking effect.
Decision time on FX CCPs
March 8, 2011Two central counterparties are currently being built to clear foreign exchange options. There is a great deal of preparation to be done.
High rates put the spotlight on Brazil
September 29, 2010Fuelled by high interest rates, the strength of the Brazilian currency should be thwarting growth, but Brazil is not your typical emerging economy, reports Silvia Pavoni.
Central banks focus on reserves and currencies
September 29, 2010Central banks have dropped their traditional low profile - becoming more proactive, accumulating large reserves and intervening actively to support their national currencies and interests. The composition of their reserves is also changing, with a number of central banks considering moves to reduce their exposure to the US dollar, reports Joanne Hart.
Corporates left at the sharp end of currency risk
September 29, 2010Unprecedented volatility on the foreign exchange markets has dramatically increased the currency-related risks for corporates and has forced them to re-evaluate their strategies for hedging against sudden shifts. Banks and software suppliers are developing tools to help them address the situation, writes Frances Maguire.
FX emerges as the big winner of the crisis
September 29, 2010FX volumes have risen to new heights on the back of a huge increase in spot volumes and more activity from a broader range of players. But what the figures really tell us is that FX has matured as an asset class. Geraldine Lambe reports.
Has P2P's time finally come?
September 29, 2010An influx of non-bank online payment providers offering customers new, easy-to-use ways to transfer money has spurred some banks into providing similar systems. However, there is some scepticism, particularly in the US, about just how much these new methods threaten traditional banking models.
FX in flux
May 28, 2010Banks looking to compete in today's foreign exchange markets need to cope with immense challenges, including new players, new markets, and no less than a revolution in technology. Writer Charlie Corbett