According to Ravi Menon, the Monetary Authority of Singapore’s (MAS) managing director, Singapore is set to trial the live issue and utilisation of wholesale central bank digital currencies (CBDCs) in 2024. Menon, speaking at the Singapore FinTech Festival 2023 on Thursday, revealed plans to extend their experiments in the coming year, but did not provide… Continue reading Monetary Authority of Singapore announces live trial of CBDCs in 2024
Category: Business Currency
Foreign Exchange and Business Currency Articles
UK inflation rate defies expectations, holds at 6.7% in September
The UK’s inflation rate remained at 6.7% in September, defying earlier predictions of a slight decrease. This rate is the highest among major advanced economies and sustains the possibility of a future rise in interest rates. The data for September indicates an end to a sequence of falling inflation rates and fuels ongoing government and… Continue reading UK inflation rate defies expectations, holds at 6.7% in September
Next-Gen cross-border payments: Visa’s vision and strategies for the future
In an era defined by lightning-fast technological advancements and an increasingly interconnected global economy, the cross-border payments market is undergoing a radical overhaul.
South Korea opens local currency market to offshore companies
South Korea is set to permit offshore companies to apply for trading rights in its local currency market starting next month. This move is part of the country’s ongoing efforts to have won securities included in major global indexes. The decision received approval from President Yoon Suk Yeol’s cabinet earlier this week and will come… Continue reading South Korea opens local currency market to offshore companies
India allows “vostro” accounts from 22 nations to broaden rupee trade
India has permitted banks in 22 partner nations, including Russia and the UK, to establish “vostro” accounts within its borders, the government informed the parliament on Tuesday, aiming to bolster trade conducted in rupees. Vostro accounts represent the funds a local bank typically manages on behalf of an overseas bank, denominated in the former’s currency.… Continue reading India allows “vostro” accounts from 22 nations to broaden rupee trade
Indian rupee drops, stable premiums throughout July
The Indian rupee depreciated on Monday and appeared set to register a monthly decline due to a central bank that seems reluctant to allow the currency to strengthen significantly. As of 11:02 IST, the rupee stood at 82.2625 against the dollar, a decrease from 82.2475 on Friday. Throughout July, the local currency has fallen by… Continue reading Indian rupee drops, stable premiums throughout July
India and UAE to use local currencies in trade transactions
In a bid to bolster the global presence of the Indian rupee, India and the United Arab Emirates have reached an agreement to utilise their respective local currencies for cross-border transactions. These developments were announced by the Reserve Bank of India, which stated that the two memorandum of understandings signed on Saturday aim to facilitate… Continue reading India and UAE to use local currencies in trade transactions
Central Bank Digital Currencies gaining traction among countries
According to a study released on Wednesday by the US-based Atlantic Council think tank, 130 nations, representing 98% of the global economy, are currently exploring digital variants of their currencies. Nearly half of these countries have reached advanced stages of development, pilot testing, or even launched their digital currencies. The research highlighted the significant progress… Continue reading Central Bank Digital Currencies gaining traction among countries
Japan’s Finance Minister says markets should set FX Rates after Yen weakens
In the midst of a significant dollar surge, as interest rate differentials continue to favor the American currency, the Japanese yen has fallen to its lowest levels since November 2022. Japan’s Finance Minister, Shunichi Suzuki, maintains a laid-back stance on this shift, implying a hands-off approach by expressing that “currency rates should be determined by… Continue reading Japan’s Finance Minister says markets should set FX Rates after Yen weakens
Correspondent banking in an era of evolving international trade
This article focuses on correspondent banking, its role in international trade, and shortfalls of the traditional model that adversely affect lower-income countries, impeding economic development and the advancement of financial inclusion.
The Dollar slowdown: British and European exporters, take note!
The COVID-19 pandemic caused global central banks to take emergency action to support the world’s economies; one such measure was the rapid cut in interest rates to record lows.
Renminbi’s resurgence – a move away from dollar d(en)omination
The United States Dollar has been the de facto global currency for the better part of the past century. While rhetoric questioning its longevity in this role has been around for decades, the past year has seen more leaders of rapidly emerging economies beginning to question why it still needs to be this way.
Euros Instead of Dollars Due to Force Majeure Clause?
The Court of Appeal in England has decided in MUR Shipping BV v. RTI Ltd [2022] EWCA Civ 1406 (27 October 2022) that sometimes a party must accept payment in Euros, even though the contract expressly stipulated payment to be made in US Dollars. Although the case is not about independent undertakings, DCW readers might ask if the decision could have implications for letters of credit and demand guarantees.
BAFT goes live with foreign exchange certificate
BAFT, the leading global financial services association for international transaction banking, today announced the launch of its new Certificate in Foreign Exchange (CFX), which includes a series of eight courses that offer an overview of a financial institution’s foreign exchange department and services. The certificate is tailored for junior to intermediate level transaction banking professionals,… Continue reading BAFT goes live with foreign exchange certificate
What a strong US dollar means for the world
The strength of the US currency has amplified already existing headwinds for the world economy. But while central banks have kept up the fight to protect their currencies from depreciation, a USD reversal is something only the Fed will be able to engineer.