By Reuters Staff
2 Min Read
JOHANNESBURG, May 25 (Reuters) - The South African Reserve Bank (SARB) is studying the benefits of issuing a digital currency for general retail purposes, it said on Tuesday, in line with several other central banks.
A central bank digital currency, or CBDC, is a form of electronic cash linked to the sovereign currency on a one-to-one basis, with its value protected by the central banks’ monetary policy and inflation-targeting regime.
It would allow businesses and individuals to make electronic payments directly backed by the federal bank.
The SARB said it would “investigate the feasibility, desirability and appropriateness of a central bank digital currency (CBDC) as electronic legal tender, for general-purpose retail use, complementary to cash.”
4 Min Read
LONDON (Reuters) - Emerging economies from Peru to Romania are in the firing line as looming U.S. tapering raises the risk of outflows from local currency bond markets, hitting a vital funding source for governments striving to recover from the coronarvirus crisis.
As the U.S. economy edges back to health, the Federal Reserve is wrestling with the question of when to begin unwinding its monthly $120 billion in asset purchases that has flooded markets in the aftermath of the pandemic.
Any tapering could be bad news for some emerging local bond markets, which make up more than 80% of developing nations’ fixed income universe and form the bedrock for government finances. Local emerging debt sucked in foreign flows of at least $149 billion over the last year, the bulk of to China.
By Reuters Staff Euro zone periphery govt bond yields tmsnrt.rs/2ii2Bqr
LONDON, May 25 (Reuters) - A lessening of inflation fears saw euro zone government bond yields edge down for the third day in a row on Tuesday, as the market continued to calm down from last week’s sell-off.
Last week, Germany’s 10-year Bund yield rose to two-year highs, while Italian yields rose to their highest since September, as investors bet stronger economic growth could prompt the European Central Bank to slow the pace of its emergency bond purchases soon.
But yields started falling on Friday when ECB President Christine Lagarde said it was still too early for the ECB to discuss tapering the stimulus.
By Reuters Staff
May 24 - A look at the day ahead from Danilo Masoni.
Taper talk is not going away and nor is Bitcoin volatility. But the global economy continues to steam on and COVID-19 infections are dropping, seemingly having peaked even in India.
So as the last full week of May kicks off, markets don’t look eager to move beyond well-trodden trading paths, perhaps reflecting investors’ wariness but also holidays in many parts of Europe.
Stock futures in Europe are up and Wall Street too looks set to hold ground after Friday’s a mixed show. The dollar is languishing just off three-month lows and, at 1.62%, 10-year U.S. yields are at the midpoint of their 11-week range bond investors may keep powder dry ahead of a series of Treasury auctions and Friday’s U.S. core PCE inflation reading.