Financial Regulatory Forum

India allows euro, yen, sterling forex futures

(Updates with dealer comments, background)

MUMBAI, Jan 19 (Reuters) – India’s central bank on Tuesday allowed the introduction of currency futures in euro, yen and pound sterling, a move dealers said would improve liquidity in the derivatives market.

The approval will expand the currency futures trading from the dollar-rupee contracts that was started in 2008, and will help participants hedge their risks in more currencies.

“This will improve liquidity further and facilitate price discovery better for non-dollar pairs,” said R.K. Gurumurthy, head of treasury at ING Vysya Bank.

The central bank had said in its policy review in October last year that market participants were asking for futures contracts in major currency pairs.

“It will help exporters and importers to hedge their cross currency flows,” said a dealer at a foreign bank.

U.S. Fed chief Bernanke says ‘exit’ strategy essential for dollar confidence

Chairman of the Federal Reserve Ben Bernanke speaks at the Federal Reserve Conference on Key Developments in Monetary Policy in Washington October 8, 2009. (File Photo) REUTERS/Kevin Lamarque SANTA BARBARA, Calif., Oct 19 (Reuters) – Federal Reserve Chairman Ben Bernanke on Monday said that the performance of the dollar and the U.S. economy will depend on the government’s success in controlling the country’s budget deficit.

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ANALYSIS-Emerging currency revaluation back on global table

By Mike Dolan
LONDON, Aug 5 (Reuters) – Western governments seem set on preventing currency appreciation snuffing out nascent economic recoveries, helping reignite bets on a devaluation of major currencies against those of the emerging economic giants.

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China’s forex reserves are ‘diversified,’ – central bank chief

By Zhou Xin and Simon Rabinovitch
BEIJING, July 17 (Reuters) – China’s $2 trillion stockpile of foreign exchange reserves, the world’s largest, is diversified despite the vast amount held in U.S. Treasuries, the Chinese central bank chief said on Friday.
Zhou Xiaochuan’s apparent satisfaction with China’s current dollar-heavy investment portfolio contrasted with calls he has made this year for a new super-sovereign currency to end the greenback’s dominance. (more…)

Nigeria surprises with rate cuts, lifts forex controls

Nigerian Central Bank Governor Joseph Sanusi   By Randy Fabi
   ABUJA, July 7 (Reuters) – Nigeria’s new central bank chief surprised markets by slashing interest rates by 2 percentage points on Tuesday, as he also set about reforming the banking sector and lifted foreign exchange controls. (more…)

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