index. 4 implied volatility of at the money options on commodity futures of germany, japan, the uk, and the us ; weighted average based on gdp and ppp exchange rates. 5 implied volatility of at - the - money options on long - term bond futures of germany, japan, uk and u. s. 6 jp morgan vxy global index. source : bank of international settlements ( bis ) quarterly review 2015. note : the jp morgan vxy global index measures volatility in a basket of g7 countries ’ currencies. for an analysis on this, see appendix. for further insights on this, see appendix. bis central bankers ’ speeches chart 6 : widening interest rate differentials and fx 2 a decrease on an inverted scale indicates euro depreciation. source : bank of international settlements ( bis ) quarterly review 2015. although the timing of the fed ’ s first tightening move in many years has become more uncertain, interest rate differentials between the us and many other countries are still wide, with important consequences for foreign exchange markets. in particular, except for a brief hiatus in the second quarter of 2015, the us dollar has been on an appreciating trend since mid - 2014. the effect of interest rate differentials on the us dollar was particularly strong visa - vis the euro : as the difference between us and core euro area interest rates began to widen again in the third quarter of 2015, the dollar resumed its strengthening path against the euro ( see chart 6 ). towards the end of the period, as us short - term rates edged down, the euro recovered somewhat. in addition, foreign - exchange volatility now stands at its highest levels since 2011 ( see chart 7 ). chart 7 : jp morgan global fx market volatility index sources : bloomberg and bank of greece. note : the jp morgan global fx volatility index tracks the value of options of emerging and developed market currencies against the us dollar : new zealand dollar, norwegian krone, swedish krona, japanese yen, the euro, british pound, and canadian us dollar. bis central bankers ’ speeches as far as bond markets are concerned, a volatility spike was evident especially in german bund markets in may and june. german government bonds are the key driver of european government bonds, since they serve as a benchmark for a host of other government and corporate securities and thus have a systemic ( european and global ) influence on borrowing, investing and saving behaviour and

broader effort of the central bank community to enhance interoperability between different systems and schemes at the international level. the bank of greece is a warm supporter of such initiatives. and in what regards the payments environment in greece, it takes concrete actions, using the full potential of its different institutional roles – as policy maker, as system operator and as fiscal agent of the government. the bank of greece is keen, in that context, to make use of this particular momentum of a broader effort that is now unfolding to digitalize the functions of the greek public sector. historically, the bank of greece had the role of initiator for critical infrastructure projects in the financial sector, among which was the setting up the greek retail payment scheme. and today the central bank remains the main actor behind the particular scheme ’ s constant innovation and integration in the eu payments landscape. an important milestone, in this context, has been the adherence to target instant payments scheme ( tips ) at the end of 2021. another important milestone coming soon is the bank of greece ’ s launch of sepa - instant for government - related payments, whereby the central bank will become a tips participant on behalf of the government. the plan is to bring instant payments to the citizens ’ everyday interactions with public sector entities and will be established very soon. in a broader perspective, the bank of greece has recently adopted policies to embrace innovative projects and ideas, through its newly established innovation hub and the activation of a regulatory sandbox. the bank of greece has partnered also with other institutions ( such as the ebrd ) in the context of such initiatives, with the aim to support an ecosystem of new and innovative market players, primarily in payment - related areas and promote new areas of collaboration with the market. as regards the broader payment landscape and payment habits in greece, it is important to note that changes have taken place in the last 5 years : - a constantly strong move towards cashless payments – with card payments still dominant in that move ; - large increase in digitalization of financial transactions, with efficiency gains for all parties involved - introduction of innovative instruments and applications with new players in the market. greece ’ s infrastructure of extended point - of - sale networks, already in place for many years, has attracted strong market interest from the merchant acquiring business perspective. in that respect, several acquisitions have recently taken place and new institutions are being licensed and established. instant payments are also progressing in greece – though at a slower pace, as observed also elsewhere in europe.