Foreign Exchange

The European Union is still debating the nature of its common currency, the position of non-eurozone EU members like the UK, and the future of stressed eurozone countries like Greece.  But the situation in other parts of the world is quite different.

Trends | US Dollar/Corporate Earnings
As corporate guidance goes, it was not the most upbeat news ever.

Capital Markets | Q&A
Eduardo Suárez, co-head of Latin America strategy in the Global Banking and Markets division of Scotiabank.

Dear Reader:
The strength of the US dollar is keeping many executives busy these days both in the corporate and the financial world.

Capital Markets | Foreign Exchange
The strong dollar has beaten down emerging markets currencies ahead of prospective Federal Reserve rate increases, but the fallout for developing economies will vary widely.

Trends | US Dollar/Mergers & Acquisitions
The US dollar has climbed some 25% since June to its highest level in the past 12 years, which could have a significant impact on one of America’s biggest economic drivers: foreign direct investment.

Mergers & Acquisitions | Management
Amid the merger frenzy of 2014, a startling number of bids were killed. 2014 may have seen heady times for corporate acquirers, but it was also the year of the rebuffed suitor.

Capital Markets | Foreign Exchange
Currency pegs around the world are threatening to come unglued following the Swiss National Bank’s surprise move to drop the exchange rate floor of the euro versus the Swiss franc.

Milestones | Venezuela
Venezuela’s introduction of a marginal free-floating currency system that will freely trade the US dollar and the bolivar seems unlikely to enlarge the country’s foreign exchange reserves or stem its growing external debt.

Trends | Foreign Exchange
Foreign exchange traders complained that lack of volatility in the market last year was drying up their business. These same traders are now feeling whiplash from the Swiss National Bank’s surprise move on January 15 to de-peg the “Swissie” from the euro.

Eddie Listorti, co-global head of fixed income, currencies and commodities at ANZ Group in Singapore, sees intra-Asian currency flows as a lucrative opportunity.

Lithuania | Milestones
On January 1, Lithuania abandoned the litas, becoming the 19th member of the eurozone and joining Baltic peers Estonia and Latvia in the economic and monetary union.

Mikhail Palei, head of foreign exchange flow at VTB Capital in Moscow, expects international banks to lose their appetite for risk in the Russian ruble—which he sees as an opportunity for Russia’s FX desks.

Treasurers from leading F500 companies and executives from top banks gathered at the Harvard Club in New York to discuss how treasurers are leveraging new market developments to improve treasury operations.

Regulatory uncertainty, technological change and traders behaving badly have collided in a perfect storm for banks’ foreign exchange operations

Antti Ranta, head of FX at Nordea in Helsinki, sees demand growing for emerging markets currencies in Nordic countries—and for advice on how to trade them.

Corporate Debt | Capital Markets
Euroclear will extend its cross-border settlement services at the end of January to Mexican corporate debt instruments known as cebures, or “bourse certificates.” This will enable Mexican companies to issue peso-denominated debt specifically targeted to international investors.

Philip Nel, head of FX trading for Africa at Standard Bank in Johannesburg, anticipates a proliferation of new foreign exchange products in countries across the continent.

Africa | Emerging Markets Regional Review
African economies are well on their way to transforming the region’s status from a frontier to an emerging market. The IMF predicts Africa will grow by 5.8% in 2015, up from 5.1% this year, with Chad, Côte d’Ivoire, Democratic Republic of the Congo and Mozambique projected to growth over 8%.

China | Capital Markets
In a major step toward opening China’s capital account, Hong Kong and Shanghai have linked their equity markets and abolished the cap on how much Chinese currency Hong Kong residents may purchase (or sell) daily.