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Asia is Adding to its FX Reserves in 2017 (China Included?)

Perceptions often lag economic shifts. President Trump for example campaigned against China’s currency manipulation at a time when China was selling foreign exchange in the market, and thus didn’t meet the classic definition of manipulation. And now I think—partly because of the coverage of the Trump Administration's fight over designating China —there is a general perception that China is still selling significant quantities of foreign exchange to prop up its currency. Read More

July 26, 2017

Puerto Rico
Puerto Rico’s “Voluntary” Restructuring of GDB Bonds

Puerto Rico’s Oversight Board didn’t object to the terms of Puerto Rico’s proposed restructuring of the Government Development Bank bonds (and selected deposits) so it looks like the GDB restructuring will go forward if the deal gets enough creditor support. I have mixed feelings on this.

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July 24, 2017

China
China's June Reserves

No sign of pressure on China's exchange rate regime in the June intervention proxies. Overall intervention in the second quarter is back at pre-August 2015 levels.

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July 20, 2017

Monetary Policy
Can the Fed and ECB Work Together To Reduce Imbalances?

Fed Governor Lael Brainard’s speech on central bank coordination last week was quite interesting—I think it should be read for far more than a signal on when the Fed is likely to next raise the policy rate.

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