samchain/econo-pairs-v1 huggingface dataset:
Exceptional circumstances still apply for monetary policy Clearly, exceptional circumstances still apply for monetary policy. This is the case not only for Switzerland and the euro area, but also for the US, Japan and the UK. As you know, the ECB reduced its refinancing rate by a further 25 basis points two weeks ago. In the US and Japan, current quantitative easing measures are giving rise to a further expansion in central bank balance sheets. The fact that monetary policy in the advanced economies is likely to remain exceptionally expansionary for some time to come can be seen in market expectations for reference rates (cf. chart 3). At the moment, the markets are assuming that the Federal Reserve will increase its key interest rate in the second quarter of 2015, the ECB in the fourth quarter of 2015 and the SNB in the first quarter of 2016. Last year, a number of central banks introduced the principle of forward guidance, in order to further increase the effectiveness of their expansionary monetary policy. Forward guidance involves the provision of information on the expected movement of short-term interest rates. To some extent, information of this kind has already been provided by central banks in the past. What is new with forward guidance is that some central banks give an explicit indication of how long they expect low interest rates to continue. For instance, the Federal Reserve and the Bank of England have tied the assessment of their respective reference rates to a threshold for the unemployment rate.

The increase in capital reflects a number of factors – a long period of low capital payouts relative to income, significant equity raises, as well as sizable asset dispositions that have shrunk the balance sheet and bolstered capital. The fact that credit losses have abated and this has enabled banks to release reserves has also been important. The second element is the international agreement to implement new Basel III capital standards. Not only will Basel III significantly raise the Tier I capital standard when it is fully implemented in 2019, but also it raises the quality of capital by putting the emphasis on tangible common equity. In addition, we and our partners in the international community are in the process of implementing capital surcharges for large, systemically important financial institutions (SIFIs),  BIS central bankers’ speeches  5  with the size of the surcharge dependent on size, complexity, and interconnectiveness. I appreciate that it is impossible to calibrate “SIFIness” precisely, but this is not a valid argument for no surcharge. The logic behind the SIFI surcharge is that the failure of a systemically important institution would generate a very large shock to the rest of the financial system. As a consequence, it makes sense to require higher capital for such firms to reduce their probability of failure. In addition, the Federal Reserve’s efforts to improve banks’ capital planning processes and evaluate their capital dispositions in the context of stress scenarios – the so-called Comprehensive Capital Assessment and Review (CCAR) process – is an important innovation.
To this end, the Undersecretariat of Treasury is oriented towards borrowing in TL; the FX-denominated domestic debt stock was pushed down gradually and Central Bank accelerated reserve accumulation at times of elevated capital inflows, through the flexible foreign exchange buying auctions. Reasons such as implementation of the floating exchange rate regime, the progress made in terms of attaining price stability and the decrease in TL interest rates have facilitated a wider use of Turkish lira in the economy as opposed to foreign currency. Moreover, measures like setting higher required reserve ratios for foreign exchange than those for Turkish lira and not permitting households to use FX-denominated or FX-indexed loans encourage the private sector to borrow in Turkish lira. The foreign exchange net general position arrangement for the banking sector and allowing the issuance of TL bonds by banks in a controlled manner can also be considered in this context. The fourth and last pillar of the policy framework is to promote the risk management concept. In this respect, steps to be taken regarding financial training assume importance for the smooth functioning of the system. We welcome the efforts towards increased recognition of Turkish Derivatives Exchange, more diversified products and more widespread use of forward transactions. In addition, we believe that the floating exchange rate regime that has been in implementation since 2001 has significantly contributed to the embedding of awareness of exchange rate risk.

In this case, the use of macroprudential instruments might not be needed in the direction of tightening, as domestic credit expansion will weaken. Distinguished guests, I would like to underscore once more that as the Central Bank, our primary objective is to achieve and maintain price stability, and that as stipulated by Article 4 of the CBRT Law, we are responsible for “taking precautions for enhancing the stability in the financial system and taking regulatory measures with respect to money and foreign exchange markets”. Therefore, we will continue to act with due diligence in terms of financial stability in the upcoming period as well. However, the Central Bank is not the only entity in charge of financial stability. Other public authorities such as the Ministry of Finance, Undersecretariat of Treasury, Capital Markets Board of Turkey, and primarily the Banking Regulation and Supervision Agency, also have significant authority and policy instruments in this regard. It is essential that in the period we are going through, all policy instruments in hand should be deployed in a coordinated manner for the establishment of a sounder and more stable financial structure. To close my remarks, I would once again like to thank everyone who has contributed to the organization of this event. 4  BIS Review 174/2010
While we may be in agreement on what should be done, these are not easy issues to put into practice, and my concern is that discussion in so many different groupings may lead to delay and confusion. If action is not taken quickly, individual economies, and particularly the small and open economies, will continue to have to deal with the onslaught of unrestrained international capital using the piecemeal emergency responses that I have already described. The danger is that they will be forced into increasingly unconventional and controversial action that may deepen their own problems and impede the healthy development of an open global financial system. BIS Review 2/1999  –8–  I have spoken about the measures necessary to bring us out of the turmoil and back onto the track of balanced development and healthy growth. It is appropriate, as we celebrate fifty years of central banking in one of the oldest financial centres in the region, that we look even more broadly towards how the region’s monetary system might develop in future decades. I should like to suggest two areas for development here: one relating to currency; the other to debt markets. These are important issues, and they will have a considerable influence on the broad shape of our regional economy in the next century. First, the question of currency. The recent introduction of the Euro will, in my view, radically change the way in which the global currency system works and has important implications for our own region.

Caleb M Fundanga: Banking in Zambia and the Kwacha appreciation Speech by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the German Ambassador’s working lunch, Lusaka, 7 June 2006. *  *  *  •  Your Excellency, the Germany Ambassador to Zambia, Dr. Ireen Hinrichsen;  •  Representatives of German Banks in South Africa;  •  The German Business Community;  •  Representatives of Local Banks;  •  Distinguished Ladies and Gentlemen. On behalf of the Zambian people and indeed on my own behalf, it gives me great pleasure to welcome our German visitors to Zambia. I am deeply humbled to be invited for this business luncheon hosted by Your Excellency. This interaction, Distinguished Ladies and Gentlemen, is very important to foster and enhance mutual co-operation between our two great nations. Your Excellency, with your permission, I will begin my address by discussing banking in Zambia and then proceed to give some highlights on the recent economic developments in the country. Distinguished Ladies and Gentlemen, in the early 1990s, Zambia embarked on economic liberalisation, of which reforming the financial sector was a major part. Specific measures which were undertaken included, among others, the removal of all restrictions on interest rates and elimination of controls on foreign exchange rates. Interest and exchange rates are now market determined, principally based on demand and supply.
12/02/2021  "Riding the Growth Momentum in Asia" – Keynote Speech by Ms Jacqueline Loh, Deputy Managing Director (Markets & Development), …  Speeches  Published Date: 25 January 2021  "Riding the Growth Momentum in Asia" – Keynote Speech by Ms Jacqueline Loh, Deputy Managing Director (Markets & Development), Monetary Authority of Singapore, at Asian Financial Markets Forum (Prelude) on 22 January 2021 Introduction 1. Good a ernoon. It is my pleasure to join you today at this Prelude event to ACI’s inaugural Asian Financial Markets Forum to be held in October. Asian economies and financial markets have experienced remarkable growth in the last two decades, and will continue to be major contributors to global growth going forward. With this positive outlook, I am glad that the Forum will focus on “The Asian Financial Markets in the Next Decade” – a theme which is highly important and invigorating. Macroeconomic outlook – Bullish for Asia 2. The COVID-19 global health crisis has led to the deepest economic downturn in eight decades. The World Bank estimates that the global economy contracted by 4.3% in 2020. [1] As the world economy began to emerge from the depths of recession in May last year, Asia was at the forefront of the recovery. Indeed, the 2020 recession in Asia was shallower than in the rest of the world. [2] This was due both to positive growth in China and Vietnam, as well as less severe recessions in other Asian countries.

One developing area is the need for common green financing language that can crowd in private financing required to green Asia’s economies. Concerns about green washing and the lack of clarity on what constitutes green or transition activities can impede financing flows to these activities. MAS is therefore working with the financial sector to assess the potential of a taxonomy for Singapore-based financial institutions, to facilitate the financial sector to channel capital more eﬀectively to support Asia’s green and transition needs. We are also a member of the International Platform on Sustainable Finance, and will contribute to global eﬀorts in establishing greater inter-operability between existing taxonomies. 23. I note that one of the three panels today will discuss sustainability issues. I believe that this will be the start of the many more useful sessions that the Asian Financial Markets Forum will put together, and this will provide us valuable insights as we continue to progress on the sustainability agenda. Conclusion 24. To conclude, Asian financial markets are in good stead to support the positive growth momentum in Asian economies in this new decade, and the building of a more sustainable world. 25. I thank ACI for organising this event, providing us a front seat and a chance to contribute to the meaningful conversations on important issues to the region. 26. I wish you a fruitful discussion ahead. Thank you. ***  [1] World Bank, January 2021, “Global Economic Prospects.” [2] IMF, October 2020, “World Economic Outlook.” [3] See footnote 1.
To attract foreign investors, the Macedonian authorities offer a favorable tax environment (flat tax system with low rates), undertake the necessary infrastructural investments and create favorable business environment. It was allowed by the fiscal space before the crisis, and although the trend of the public debt is rising, now it is 43% of GDP, still being one of the lowest in Europe and broadly. Government's policies and efforts for attracting FDIs resulted in an establishment of local subsidiaries of several world leading manufacturing companies, especially from the automotive industry. This strategy of products' export diversification helped a lot in time of economic difficulties of our main trading partner - that is Europe. This strategy of strengthening the export base has also contributed to lower trade deficit and CAD (falling to below 2% of GDP), which on turn helped for monetary accommodation under the chosen monetary strategy of exchange rate targeting. This monetary strategy, the NBRM is conducting since the 1995 with fixed exchange rate of Denar, first with Deutsche Mark, and afterward with Euro. It delivers low inflation environment, which is the primary objective of the NBRM specified by law. Having in mind that the exchange rate of the domestic currency has not been changed since 1997, the selected monetary policy strategy demonstrates the high credibility of the central bank. However, this strategy underlines the importance of reserve management function within the central bank. Management of reserves, as we are all aware of, is a complex and timeconsuming business.

Macedonia had its glory days during the build-up of its ancient empire ending with the sudden death of the Alexandar III of Macedonia (also known as Alexander the Great). Afterwards, the Romans established the province of Macedonia, which in time of Diocletian was divided between Macedonia Prima ("first Macedonia", on the south) and Macedonia Secunda ("second Macedonia" on the north). Most of the country's modern boundaries fell within the latter, with the city of Stobi as its capital. We will have the opportunity to take a brief look on this period of the Macedonian ancient history on Wednesday afternoon, when we take you to visit Stobi archeological site. The history of Macedonia later on was influenced by other great empires in which the country was part of, creating a treasury-trove of Byzantine, Slav and Turkish history, with a host of forgotten monasteries, mosques and castles. After the II World War, the Republic of Macedonia was one of the six republics that have formed Yugoslav Federation. As sovereign parliamentary democracy, we have gained our independence in 1991, and the monetary independence in 1992, with Denar as a national currency. Part of the rich history of Macedonia can be seen in Skopje, the capital city of the country. In that respect, the old fortress Kale, that overlooks the modern city center, offers an insight in the first Neolithic settlements, while Old Bazaar, with its narrow streets and craftsman shops, is a snapshot of the Ottoman rule.
The Riksbank’s policy is based on forecasts, which are necesssarily BIS Review 56/1997  -5-  uncertain, and it also has to be designed so that it is perceived as consistent in the long term and credible. Figure 3  Ac tu a l a n d E x p e c te d R e p o R a te P e r ce n t 10  10 9  R e p o r a te  8  9 8  5 M a r .’ 96  7  7  5 J u n e ’ 96  6  6  24 S e p t .’ .’96 96 10 M a r .’ .’97 97  5  5 4  4  13 M a y ’9 7 3 j a n -9 6  3 m a r -9 6  j u n -9 6  s e p -96  d e c -96  m a r -9 7  j u n -9 7  S ou rce : T h e R iks ba n k The conclusion is that there may be reason and scope for the Riksbank, within the framework of a policy with price stability as its objective, to pay attention to real economic developments. In fact, this possibility is inherent in a monetary policy based on an inflation target. In practice, however, the possibilities of an active stabilisation policy are limited by the general uncertainty that prevails.

What we saw in the international financial markets—after the bond markets’ crash in 1994 or the Mexico/Barings unrest in 1995—is an interaction between market tendencies in a more limited sense and weak public finances or other credibility problems. High international interest rates and currency unrest have aggravated the problem of public finances,  BIS Review 56/1997  -7-  so that on these occasions economies such as Sweden’s have moved from a virtuous to a vicious circle. Examples of how one could analyse exchange rate developments in the above terms can also be found in events of the last half-year. An explanation of developments with respect to the krona has to do with the position of the Swedish and continental economies in the business cycle. In recent months the dollar and the pound especially have appreciated relative to continental currencies. Monetary policy in the USA and Great Britain has been relatively tight. (Figure 4). This is still not the entire explanation. The krona has also fallen somewhat against continental currencies, especially during the winter and spring. In part, this has coincided with concerns with respect to the EMU process, possibly strengthened in Sweden’s case because Sweden’s position on the EMU issue is unclear. In addition there has been some uncertainty about the steadfastness of long-term economic policy connected with, inter alia, continued high unemployment. The studies that have been done by the Riksbank indicate that there is room for an appreciation of the krona.
I have conducted here a fairly superficial analysis of a particular set of countries, in order to make a general point, which may be more relevant in some cases than in others. I am not going to be drawn into commenting on specific cases, since more thorough analysis would be required before reaching definitive conclusions. I leave you with, I hope, an incentive to explore some of the issues further if you wish. The challenge which I have identified - that of raising the efficiency and attractiveness of domestic financial intermediation - is not a new one, but an old one which has perhaps remained with us for too long. And I should add that the problem is one that is probably very much more serious in certain other parts of the world -for example, in some countries of the former Soviet Union - than in Asia. I have managed to get this far without saying anything about Hong Kong, other than to exclude it from the preceding analysis. I ought now to redress the balance. You will recall that one of my reasons for excluding Hong Kong was that I judged it to possess a relatively mature financial infrastructure. That certainly does not mean that we are necessarily satisfied with things as they stand. Indeed, I know of no financial centre in which the authorities are in that happy position.

But a significant amount of investment may have no identifiable link at all to domestic saving, because savings have flowed out of the country through one channel and investment funds have flowed in through a completely different one. I shall return to this point in a minute. Returning to the behaviour of domestic saving and investment, the chart shows the excess of saving over investment in graphic form. I have then added a column representing the recorded inflow of foreign direct investment. The latter may perhaps be regarded as the category of inflow likely to be most closely associated with physical investment. If you add that to the surplus of saving over investment (i.e. the two columns together), you can visualise in the majority of instances a significant potential over-funding of investment, even before taking account of any inflows of portfolio funds or bank finance which may head to the same destination. Does this mean that there has in practice been more than enough money around in these countries to finance all desired investment? Of course not. As hinted earlier, I have failed so far to take any account of capital outflows. Part - in many cases perhaps a substantial part - of domestic savings is 1  BIS Review 52/1999  exported.
The increased competitive pressure has been further amplified with the regulatory changes in the payments segment-PSD2, such as elimination of barriers to entry for third parties by providing access to data and accounts of the customers in the banks – so called “open banking". According to the research by PricewaterhouseCoopers 2, banks have very firmly moved from viewing open banking as a compliance exercise to an opportunity to compete, innovate, and deliver value and more than 33m people are expected to have signed up to open banking driven services by 2022. Against these background many fintech firms, that are not regulated entities, have launched new, differentiated and tailor made products, putting a significant pressure on traditional financial institutions. Very important factor that most probably will shape the future of the traditional banking industry is the way how traditional banks approach and embrace the financial innovations, be it directly on their own or through cooperation with new fintech companies. Not only will fintech companies try to behave like banks, but banks will also try to behave like fintechs. While some market observers estimate that a significant portion of banks’ revenues, especially in retail banking, is at risk over the next 10 years, others claim that banks will be able to absorb or outcompete the new competitors, while improving their own efficiency and capabilities.

I would like this evening to say something first about the role of exchanges in this new environment, and then touch on the role of technology in changing that environment and the implications for clearing houses in managing the resulting risks. Role of exchanges So far, the established derivatives exchanges retain substantial and often growing volumes although, in recent years, OTC derivatives trading has expanded much faster than on-exchange trading in many areas. On-exchange business continues to be dominated by Chicago in the US and by London, Frankfurt and Paris in Europe. The LME remains the world leader in its field, as do the IPE and Nymex in theirs. But the number of new trading systems emerging in the various markets demonstrates that the winds of change are blowing hard, and today’s market leaders are aware of the need to innovate to survive in a rapidly evolving market place. Exchanges are responding to these challenges in a number of different ways. Some exchanges look to leverage off their involvement within wider groups containing a range of trading, clearing and settlement systems. This is not, however, our preferred structure in London; the different tiers have different characteristics and we believe it is generally in the best interests of users if trading, clearing and settlement are kept apart. Some exchanges have chosen to merge or ally with others to provide a larger, more liquid and more competitive marketplace.