Sentences with phrase «central bank reserves into»

Diversification of central bank reserves into larger holdings of euros is much in the news these days.

Not exact matches

«When the central bank promises a smaller payment, reserves are a less attractive investment, so banks will... move away from reserves and into loans,» Reis, an academic at the London School of Economics, wrote in the paper.

In addition, the Federal Reserve developed a term deposit facility to drain banks» reserve balances.14 This playbook of draining reserves back to reserve scarcity to support the transmission of interest on reserves into market rates is standard among central banks.

China's central bank gave a green light to banks to dig into reserves to lend more, signaling government worries about slowing momentum for economic growth amid rising trade tensions with the U.S.

The problem is for this or other currencies to become international reserves held by foreign central banks, the issuing nation has to run a balance of payments deficit to pump this currency into the global economy.

Then the resultant acceleration in US deficits creating market concerns for sustainability, during a time that the Euro was introduced, over time, Central bank reserve diversification into USD, creating anxiety for Investors, and the USD declined.

The central bank's foreign reserves have dropped by $ 36bn, or 5 per cent, over the past two months, as newly crowned King Salman bin Abdulaziz Al Saud dips into Riyadh's rainy - day fund and increases domestic borrowing to fund public - sector salaries and large development projects.

The past several years have featured little more than a gigantic asset swap, the short description being that massive volumes of government debt have been swapped by central banks for massive volumes of idle bank reserves, while massive volumes of low - yielding, covenant - lite debt have been issued into the hands of yield - seeking investors, in order to retire massive volumes of corporate equities at elevated valuations through buybacks.

The Fed's tendency to favor Treasury and agency securities when conducting monetary policy operations, though innocuous enough when banks hold only minimal excess reserves so that the Fed leaves only a relatively modest «footprint» on overall credit allocation, becomes a serious matter when banks pile - on excess reserves, turning the Fed into the central - bank equivalent of the abominable snowman.

On the one hand we have central bankers in Europe and Japan lowering their lending rates into negative territory, which means they charge the major banks money just to hold their reserves overnight.

I think all central banks should look into this technology, and look into adopting existing digital currencies like Bitcoin as part of their basket of reserve currencies.»