Foreign Exchange

MILESTONES: RUSSIA

During his trip to China in mid-May, US Treasury secretary Jacob Lew repeated a favorite Washington refrain: Authorities in Beijing should do more to allow the renminbi to trade freely against the dollar.

Inflation in the eurozone slipped to 0.5% at an annual rate in March, its lowest level since 2009. The persistence of low inflation prompted policymakers to discuss quantitative easing (QE) and a negative deposit rate, putting some downward pressure on the euro.

CORPORATE FINANCING NEWS   By Gordon Platt   The European Central Bank’s refusal to ease monetary policy in the face of below-target inflation boosted the euro to its highest levels of the year in March, while the British pound rose ...

EMERGING MARKETS ROUNDUP By Antonio Guerrero Brazil posted a net foreign exchange outflow of $12.3 billion for 2013, marking the first negative balance since the 2008 global financial crisis—putting paid to Brazilian Finance minister Guido Mantega’s claims that developed markets ...

CORPORATE FINANCING NEWS By Gordon Platt The Japanese yen and the dollar rode an updraft in recent weeks caused by a flight to safety amid the emerging markets crisis. Meanwhile, the euro also was strengthened by the European Central Bank, ...

CORPORATE FINANCING NEWS   By Gordon Platt   Central bank policies in the major economies will likely be the main guide for currency exchange rates this year, analysts say. Janet Yellen’s confirmation as the new head of the Federal Reserve ...

Profits: Lost in translation Companies are struggling mightily to manage currency exposure in the face of rising exchange rate volatility. According to a study by risk management consultancy FiReapps , 846 Fortune 2000 companies that generate 15% or more of ...

ANNUAL SURVEY — STABILITY AMID CHANGE   By Gordon Platt   A global investigation into trading irregularities has not hampered growth or innovation in one of the world’s largest and most volatile markets—foreign exchange.   The $5.3 trillion-a-day foreign exchange ...

CORPORATE FINANCING NEWS   By Gordon Platt   Despite the euro’s surprisingly strong showing in 2013, analysts expect the dollar to advance against most major currencies this year. The euro won’t be allowed to continue to appreciate, or it will ...

Doing Business: Who Improved The Most In 2012/13 “In 2012/13, 29 economies implemented three or more reforms improving their business regulatory systems as measured by Doing Business. Ten stand out as having narrowed the distance to frontier the most. Together, ...

CORPORATE FINANCING NEWS   The outlook for the euro has worsened, following a slowdown in inflation in the eurozone to the lowest level in nearly four years. The European Central Bank cut its benchmark rate to a record low of ...

It’s been a tough few weeks for Japanese Prime Minister Shinzo Abe. Despite a concerted bid by Abe and other leaders in Tokyo earlier this year to weaken the yen, the Japanese currency actually firmed in October against the US ...

EMERGING STATUS By Gordon Platt Emerging markets currencies are beginning to get some respect from central banks. The Federal Reserve’s decision to delay tapering its monetary stimulus has provided a temporary boost to emerging markets currencies and financial markets. And ...

RENMINBI RUCKUS   By Gordon Platt   London and Paris are vying to become Europe’s renminbi trading hub.   Paris is challenging London, the leading center of foreign exchange trading globally, to be the hub of renminbi trading in Europe. ...

VOLATILE TIMES: GETTING A GRIP ON RISK By Rob Daly Corporate treasurers now have ever-more-sophisticated tools to help get a handle on currency exposures and manage increasingly volatile FX market risk. “It has been interesting times for currency exchange rates,” ...

Global Finance’s annual list of the most important players in forex. By Gordon Platt BMO Capital Markets CJ Gavsie Managing director and global head of foreign exchange products and China capital markets Gavsie is responsible for BMO’s global foreign exchange ...

The foreign exchange market, the largest asset class in the world, is continuing to grow and evolve. Globally, FX trading averaged $5.3 trillion a day in April 2013, up from $4 trillion per day in April 2010 and $3.3 trillion ...

CORPORATE FINANCING NEWS   By Gordon Platt   A cyclical economic recovery is under way in the UK and the eurozone, but it won’t be strong enough to boost the euro against the dollar, analysts say.   They expect the ...

MILESTONES   By Thomas Clouse   Cambodia’s prime minster Hun Sen and his Cambodian Peoples’ Party will remain in power, following a closely contested and controversial election on July 28. According to preliminary results, the CPP won 68 of 123 ...