Latest news with #bankingsystem
Bloomberg
10-07-2025
- Business
- Bloomberg
Dollar Losing Allure for Chinese Traders Creates Runway for Yuan
Chinese traders are pulling back from the dollar, helping ease a shortage that has rattled the banking system and setting the yuan up for further gains. The dollar's premium over the yuan, as reflected in 12-month swap points, has narrowed by 25% since the end of December. Chinese state-owned banks have gradually shifted from wanting dollars to reducing their demand for it, to offering it out, according to traders who declined to be identified as they're not authorized to speak publicly.
Bloomberg
10-07-2025
- Business
- Bloomberg
Hong Kong's Push to Defend Currency Band Is Just Getting Started
Hong Kong's currency defense has become a balancing act that threatens its nascent economic recovery. When the city's de facto central bank flooded the banking system with cash earlier this year to counter a rise in the Hong Kong dollar, the impact was immediate. The currency tumbled from HK$7.75 to HK$7.85 per dollar — flipping between the two sides of the permitted trading band — and interbank borrowing rates plunged.
Bloomberg
25-06-2025
- Business
- Bloomberg
Investors Focus on HDB Financial's $1.4 billion Listing as India's IPO Gauge Struggles
Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at: Good morning, this is Ashutosh Joshi, an equities reporter in Mumbai. Local shares could extend gains, following peers in Asia and Wall Street. Traders will also be watching the government bond market as well as interest rate-sensitive sectors after the RBI's surprise move to drain about one trillion rupees ($11.6 billion) from the banking system. HDB Financial Services's IPO opens today.
The Guardian
10-06-2025
- Business
- The Guardian
Britons ‘hoarding cash amid economic uncertainty and fear of outages'
Britons are hoarding physical cash amid extreme economic uncertainty and to provide a safety net for possible banking system outages such as the recent one in Spain, according to the Bank of England's chief cashier. Victoria Cleland said on Tuesday that UK households were building a cash contingency pot, much as they did during the Covid and cost of living crises. She said the Bank had tracked a significant increase in the number of banknotes in circulation in recent months, continuing a rising trend since 2022, at a time when the volume of cash transactions has 'gone down significantly'. In comments at the Cash in the UK conference, Cleland said cash hoarding suggested households were responding to a more volatile global backdrop after the pandemic, the war in Ukraine and the trade uncertainty sparked by Donald Trump's tariffs, Bloomberg reported. Data collected by the Bank suggests the value of banknotes in circulation has jumped 23% since before the pandemic, even at a time when the use of cash has dropped. UK Finance data shows cash was used in just over half of all transactions in 2013 but this had collapsed to 12% by 2023 after a 7% year-on-year fall in the use of cash. However, in the past couple of years high-street banks and building societies have reported a strong rise in demand from customers for cash. Earlier this year Nationwide said it had seen a 10% increase in ATM withdrawals in 2024 from 2023. Britain's biggest building society said many of its customers were using cash to help them with weekly budgeting during the period of high inflation. Consumers in Spain and Portugal also turned to cash to buy goods during the power outage in late April that knocked out bank and payment systems, while cyber-attacks on UK businesses and organisations in recent months have undermined faith in electronic transactions. 'At a time of uncertainty, at a time of crisis, people do move to cash. They want to make sure they have literally got something under the mattress,' Cleland said. 'Even in the UK, there will be times where networks are down and you can only be paying in cash.' Cash began to decline as the favourite form of money in 2014 and by 2017 Bank of England data shows debit cards had overtaken cash as the most frequently used payment method. The trend began to reverse in 2022 as inflation began to rise after Russia's invasion of Ukraine. The refusal of many shops to accept notes and coins have prompted campaigners and politicians to call for a law forcing force retailers to accept them. Cleland said that consumers want cash 'to be there but they're not necessarily using it'. She added that households in financial difficulties also used it for budgeting, with reports of increased use among those hit hard by high inflation.
Bloomberg
10-06-2025
- Business
- Bloomberg
Going Long on Short Bonds Gets Boost in India from RBI Cash Move
Investors are set to funnel surplus money into short-term bonds, further boosting an already favored play in India's debt market, after the central bank's surprise decision to inject more cash into the banking system. The Reserve Bank of India's unexpected move to release 2.5 trillion rupees ($29 billion) starting September may prompt lenders to favor shorter-tenor securities over longer-dated ones, say investors including UTI Asset Management Co. and PGIM India Asset Management.
