China and Indonesia start cross-border QR code trial

China wants to hold other nations’ gold. The PBOC is courting central banks to store reserves inside China via the Shanghai Gold Exchange – a bold bid to boost its role in global finance and accelerate de-dollarization, according to Bloomberg. Michelle Makori & Andy Schectman broke this story’s blueprint back in July on Ep.1 of The Real Story – explaining how China’s gold-backed settlement system & multi-jurisdictional vaults could reshape trade & global finance system. WATCH HERE: https://lnkd.in/gCrC2-8b

China to More Than Double Daily Quota for Northbound Swap Connect China’s central bank will more than double the daily net trading quota for its cross-border interest rate swap trading scheme, a senior official said, in the latest move to grant overseas investors greater access to its onshore financial markets. The daily net limit for the Northbound Swap Connect will be raised to 45 billion yuan ($6.2 billion) from the current 20 billion yuan, People’s Bank of China (PBOC) Deputy Governor Zou Lan said Thursday at a forum in Hong Kong. The central bank will also expand the pool of eligible dealers and optimize their management. https://lnkd.in/dRSZKrGV

German #cooperative banks are looking at #crypto trading following trials by the sector's central institution DZ BANK AG, poll suggests #coops https://lnkd.in/e-W52eFa

Middle East, Central Bank of the UAE: CBUAE and CBRT Sign Agreements on Currency Swap and Payment System Integration The Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of the Republic of Türkiye (CBRT) have signed three agreements to enhance financial cooperation and strengthen trade and economic ties between the UAE and Türkiye. These include a bilateral currency swap agreement involving AED 18 billion and TRY 198 billion, aimed at providing local currency liquidity to financial markets and facilitating cross-border transactions. Additionally, two memorandums of understanding (MoUs) were signed: one to promote the use of local currencies for cross-border transactions, and another to interlink payment and messaging systems. The first MoU seeks to establish a framework for using the UAE Dirham and Turkish Lira in settling cross-border transactions, enhancing the foreign exchange market, and boosting trade and investment. The second MoU focuses on facilitating cross-border payment transactions, supporting domestic payment cards, and integrating the UAE’s instant payment platform with Türkiye’s FAST system to improve transaction efficiency. These agreements were signed by H.E. Khaled Mohamed Balama, Governor of the CBUAE, and Ph.D. Fatih Karahan, Governor of the CBRT, in the presence of senior officials from both parties. Source: https://lnkd.in/eEvty8vJ

The European Central Bank (ECB) is reported to be in discussions with major European banks regarding a potential relaxation of the capital rules that apply to those that operate with the Clearing Corporation of India Ltd (CCIL). https://lnkd.in/dMV9zYbb

Global, International Monetary Fund: IMF Proposes Stress Testing Framework for Central Bank Capital Assessment The International Monetary Fund (IMF) has proposed a new approach to stress-testing central banks to determine the appropriate level of capital needed to maintain a sound financial position. Unlike commercial banks, central banks do not have universally prescribed minimum capital requirements, which can lead to diverse views on how much capital they should hold. The IMF suggests that stress tests can help central banks assess the level of capital necessary to absorb significant shocks without compromising their credibility and independence. This approach involves a quantitative model that considers interest rate risk, credit risk, and foreign exchange risk, among other factors. The IMF has also published a guidance note on central bank stress-testing and offers technical assistance to member countries. This initiative aims to enhance transparency and public accountability regarding central banks' balance sheet actions, such as quantitative easing. Source: https://lnkd.in/es2kzWtd

#Swam line The U.S. Federal Reserve has standing swap line arrangements with the central banks of Canada, Britain, Japan, the European Union and Switzerland. It established temporary swap lines of $60 billion each with the Bank of Korea and eight other central banks in March 2020 during the COVID-19 pandemic. After the swap line expired in December 2021, the Fed offered the Bank of Korea a safety net of $60 billion through repurchase agreements, enabling it to borrow dollars with its holdings of U.S. Treasuries as collateral. In order for South Korea to overcome its trade agreement with the U.S., it must establish a strong financial capital status—something that even China has not yet achieved at this time—and proactively pursue a strategy to elevate the Korean won to a semi-reserve currency.

ARGENTINA: The U.S. Treasury directly bought Argentine pesos and finalized a ~$20B currency-swap framework with Argentina’s central bank (BCRA). -- Improves PSP/VASP economics: tighter spreads, smoother settlement windows, fewer pricing shocks -- Boosts counterparty confidence for banks, EMIs, processors—easier to open/scale limits -- Pairs with CNV 1058/2025 (VASP rulebook) for a clearer, bankable operating environment https://lnkd.in/ekHqiHFR Telegram: @Ready_Corp

Russian banks' profit down almost 50% in August month-on-month — Central Bank Banks have earned 2.3 trillion rubles year-to-date MOSCOW, September 23/ Russian banks earned 203 bln rubles ($2.4 bln) in August compared to 397 bln rubles ($4.7 bln) in July, the Central Bank reported. "The sector's profit (excluding dividends from Russian subsidiary banks) amounted to 203 bln rubles, which is significantly lower than 397 bln rubles in July," the regulator said. Banks have earned 2.3 trillion rubles year-to-date ($27 bln), which is slightly lower than 2.4 trillion rubles for the same period last year. The contraction was due to an increase in reserves for corporate loans (+67 bln rubles), among other things, as well as a decrease in net interest income (-36 bln rubles), primarily in the corporate segment where loans with floating rates account for about 65% of the portfolio, the Bank of Russia said. #business #finance #financialservices

Iran's central bank plans major currency intervention as rial tanks #bne #bneEditorsPicks #iran #fx #forex Iran's Central Bank (CBI) plans to intervene heavily in unofficial currency markets in Tehran and Dubai starting next week with the aim of reducing prices from current levels, local Persian language Econews reported on October 2. The Iranian rial has depreciated approximately 26% against the US dollar over the past two months, with the exchange rate climbing from around IRR930,000 in early August to IRR1,175,000 by October 2, following a succession of negative headlines including the reimposition of new economic sanctions by the EU, Canada, the US and Britain.