Don961: Tuesday, July 04, 2017

Central Bankers Want Communication, Not Coordination

There is no behind-the-scenes pact between powerful central bankers to tighten policy but the potent effect their actions have on financial markets means they want a deeper understanding of each others’ motivations, officials told Reuters.

European Central Bank President Mario Draghi renewed his long-standing wish last week for more talks between global central banks, fuelling suspicions that policymakers discussed more at recent gatherings than they admit.

Indeed, the ECB, the Bank of England, the Bank of Canada and Norway’s central bank all turned unexpectedly hawkish in just a matter of days with Sweden and the Reserve Bank of Australia expected to follow suit this week.

Coming on the heels of the Bank for International Settlement’s annual meeting in Switzerland, where top officials are well shielded from the media, traders and analysts have looked suspiciously at the turn of events.

However, policymakers on both sides of the Atlantic said they often share their economic views in private but to foster understanding and not to coordinate policy as each central bank acts independently.

Banks need to fulfill different mandates with widely different tools and any hint that domestic policy is subjugated to the interest of foreign central banks risks a public relations disaster. This makes policy coordination, let alone cooperation, practically impossible, sources said.

While central banks make their own decisions, these still have far reaching consequences for currency, bond and derivatives prices. Therefore policy transparency, the key benefit of private meetings, prepares policymakers for what may be coming, limiting market volatility.

“The more we can talk to each other and also communicate to markets in a way that doesn’t increase uncertainty, that would be very helpful,” Draghi said last week in Sintra, Portugal, at another gathering of central bankers. “So the need is there, how to do it is not simple.”

Some market players seized on that as a new openness by Draghi to coordinate policy with other central banks. Indeed, such cooperation is not unknown.



Don961:  Rate Unification This Year

Tuesday, July 04, 2017

The administration of President Hassan Rouhani will implement the longstanding policy of unifying Iran’s dual foreign exchange regime “at the first possible opportunity”, which will likely be during the current fiscal year ending March 2018, announced the governor of the Central Bank of Iran.”Rate unification is something that can be implemented easily and even its directives are ready to be notified,” Valiollah Seif was also quoted as saying by IBENA. However, he added that one of the main prerequisite of doing so will be for Iranian banks to be able to establish widespread correspondent banking relations with their international counterparts and only then will the central bank roll out the plan.



Samson:  National Alliance calls for the declaration of Mosul Emancipation Day an official holiday

12:45 – 07/04/2017

She called the National Alliance, on Tuesday, to be regarded as the day of the liberation of Mosul in full control of the organization “Daesh” criminal and appropriate official national holiday.

He said Alliance MP Khalid al-Asadi in a speech to the House of Representatives vassal / information / “The Iraqi security forces achieved a victory over the terrorist gangs and ended the dream of the alleged liberation of Mosul state and a number of areas of Anbar, Salahuddin, Kirkuk and Diyala”, praising “the role of the religious authority in Najaf fatwa on jihad Ulkipaia. ”

Asadi said in his speech that “the victory achieved by the security forces and the popular crowd on criminal gangs invites us to rejoice and celebrate this victory,” expressing the desire of the National Alliance bloc to “consider Mosul Emancipation Day national holiday Tstzla generations.”

He warned the National Alliance MP from the “cacophony to try some of the votes that the owners are trying to reduce the value of victory or draw the attention of citizens and inciting him to sow discord and create confusion in some provinces.”

The new National Alliance in his call for ” the government and the international community to accelerate the reconstruction and reconstruction of cities liberated cities editors, and re – displaced people to their homes after completely cleared of terrorism and gangs Daesh.”