2023-11-21 07:18

Copyrighted Image by: Reuters. SINGAPORE - The International Monetary Fund (IMF) has thrown its weight behind Central Bank Digital Currencies (CBDCs), with Managing Director Kristalina Georgieva highlighting their potential to enhance financial inclusion and fintech development. Speaking at a Singapore event, Georgieva underscored that while current adoption levels are low, more than half of the countries worldwide are exploring the feasibility of CBDCs. Georgieva pointed out that CBDCs could address the costly distribution challenges of cash, especially in island nations, and improve financial resilience in mature economies. They also promise to expand access in regions where traditional banking services are limited. The IMF chief emphasized that countries should prepare for future CBDC deployment to counteract emerging private digital currencies like Libra. In her address, Georgieva called for entrepreneurial thinking among country leaders, effective communication strategies, and incentives to encourage the adoption of CBDCs. This approach would ensure their seamless integration into current financial systems and drive growth in the fintech sector, necessitating active engagement from the private sector. At the Singapore Fintech Festival, Georgieva urged continued systematic exploration of CBDCs by countries. She noted that over 100 countries are researching their readiness for implementing such digital currencies. With active CBDCs in The Bahamas, Jamaica, and Nigeria and significant development efforts underway in Brazil, China, euro area nations, India, and the UK, CBDCs are gaining global traction. The IMF has developed a Virtual Handbook to navigate policymakers through the evolving CBDC landscape using a '5P methodology'—ranging from preparation to production—and plans to keep it updated with new global insights. This resource explores the monetary policy implications of CBDCs and how they can simplify capital flow management and promote financial inclusion. As central banks consider new technologies for implementing CBDCs, the IMF continues to offer its support. The organization is planning further publications in collaboration with international entities such as the Group of Twenty to broaden its guidance on CBDCs in the upcoming year. https://www.investing.com/news/forex-news/imf-endorses-cbdcs-to-bolster-fintech-and-financial-inclusion-93CH-3239694

2023-11-21 07:16

Copyrighted Image by: Reuters Amid a weakening US dollar and anticipation of the Federal Reserve's upcoming meeting minutes, gold and silver prices have seen significant increases. Gold surged to $1993 per ounce on COMEX, while on MCX, the price rose by Rs 330, reaching Rs 61,034 for every 10 grams. Silver also experienced a notable rise, climbing approximately 1% internationally to $23.82 per ounce and jumping to Rs 73,200 per kg in domestic markets. The precious metals' gains coincide with the US dollar hitting a more than two-month low and Treasury yields nearing two-month lows last week. Spot gold internationally was up at $1,988.29 an ounce, with US futures slightly higher at $1,990.10. Meanwhile, spot silver was priced at $23.64 an ounce. Other precious metals showed mixed movements, with platinum remaining steady at $918.59 an ounce and palladium experiencing a minor decline to $1,076.26 an ounce. Market analysts provided key support and resistance levels for both gold and silver as investors focus on the Federal Reserve's minutes for potential shifts in interest rate policies. The market is speculating over a fifty percent chance of a rate cut in May, according to CME's FedWatch Tool predictions. https://www.investing.com/news/commodities-news/gold-and-silver-prices-rise-as-dollar-weakens-ahead-of-fed-minutes-93CH-3239703

2023-11-21 06:48

Copyrighted Image by: Reuters. The Bitcoin mining landscape is undergoing a significant transformation, with industry leaders like Marathon Digital (NASDAQ:MARA) harnessing renewable energy sources to power their operations. Adam Swick from Marathon Digital has highlighted the company's strategic pivot towards forming synergistic partnerships with energy providers, particularly those with excess hydroelectric capacity. This shift is part of a broader industry trend embracing sustainable practices as the next Bitcoin halving event looms in April. Marathon Digital's approach to maintaining high fleet efficiency includes securing cost-effective electricity deals and advancing proprietary technology. The company is capitalizing on hydro-cooling and immersion-cooling technologies to enhance the performance and overclocking potential of their rigs. These technological advancements are critical as the industry braces for the fourth Bitcoin halving, which traditionally impacts miner revenues by reducing block rewards. In pursuit of sustainable and economical energy sources, Marathon Digital has forged new relationships with Abu Dhabi and Paraguay, tapping into their surplus energy reserves. This international collaboration underscores the company's commitment to environmental responsibility and operational efficiency. Moreover, Marathon Digital's environmentally conscious practices extend to its Utah operations, where methane flare gas is repurposed to reduce air pollution while simultaneously powering mining infrastructure. This innovative use of waste gas not only mitigates environmental impact but also exemplifies the evolving nature of cryptocurrency mining operations towards more sustainable models. As the cryptocurrency sector continues to mature, Marathon Digital's strategic partnerships and adoption of green technologies position it as a forward-thinking player in a field increasingly concerned with energy consumption and its ecological footprint. https://www.investing.com/news/cryptocurrency-news/marathon-digital-embraces-green-energy-for-bitcoin-mining-efficiency-93CH-3239687

2023-11-21 06:30

Copyrighted Image by: Reuters. ABUJA - The Nigerian currency, the Naira, has shown signs of strength in the parallel market, appreciating to N1,130 per USD from the close on Friday. This improvement was also reflected in the official figures on Monday, where the Naira appreciated to N750.15 per USD. The upward trajectory of the Naira comes despite a surge in inflation recorded in October. In a more detailed view of the foreign exchange market dynamics, there was a notable discrepancy between the official and parallel market rates. On Monday, while the Naira strengthened in the parallel market to N1,135 per USD, it depreciated within the Nigerian Foreign Exchange Market (NAFEM) to N841.14 per USD. However, the Investors' & Exporters' (I&E) window saw an exchange rate improvement with the naira appreciating by N41.61 reaching an exchange value of N750.14 per USD from last week's rate of N791.75 per USD. This divergence between market rates has widened the exchange rate gap to a significant figure of N384.86 per USD disparity. Despite this gap, activities within the official market (NAFEM) last week were robust with an 86% increase in dollar turnover, amounting to $725.74 million compared to $389.5 million traded in the preceding week. Looking ahead, anticipation builds as Dr. Olayemi Cardoso, CBN Governor, is expected to unveil Nigeria's economic roadmap on November 25th at a key banking sector event. Market participants and observers are keenly awaiting this presentation for insights into Nigeria's economic strategies amidst fluctuating currency valuations and inflationary pressures. https://www.investing.com/news/forex-news/naira-gains-in-parallel-market-as-nigeria-prepares-for-economic-roadmap-unveil-93CH-3239685

2023-11-21 06:11

Copyrighted Image by: Reuters. The EUR/USD exchange rate is approaching the 1.10 level, trading around the mid-1.0900s, amid a weakening US dollar influenced by improved risk sentiment and expectations that the Federal Reserve may pause interest rate hikes. This comes as US bond yields have fallen to a two-month low, indicating a potential shift in monetary policy direction. Market analysts point to several factors contributing to this trend. On Monday, European Central Bank (ECB) officials, including Bundesbank President Joachim Nagel and ECB Governing Council member Robert Holzmann, took a hawkish stance, warning against premature monetary easing. Their comments have provided support to the euro, suggesting that the ECB may continue with rate increases despite some forecasts anticipating cuts. In contrast, in the United States, weaker-than-expected Consumer Price Index (CPI) data has led markets to anticipate a possible rate cut by the Fed as early as March. The upcoming release of the Federal Open Market Committee (FOMC) minutes before Thanksgiving is expected to offer further clues on the central bank's approach following recent reports indicating declining inflation pressures. The anticipation surrounding ECB President Christine Lagarde's appearance in Berlin has also kept traders on edge, as they look for additional guidance on the future path of European monetary policy. Meanwhile, global economic indicators will be closely monitored later this week. Flash Purchasing Managers' Index (PMI) data from around the world will test the resilience of both the euro and the dollar. Europe has shown some economic fortitude with positive German ZEW and Sentix indices, contrasting with generally poor PMIs elsewhere. The US economy has demonstrated slight improvements in PMI figures despite facing headwinds such as slowing housing rent growth, a decline in industrial output, and an uptick in jobless claims. Oil prices experienced volatility last week before recovering on Friday, contributing to speculation about an end to rate hikes and renewed selling of the dollar. This comes as Japan enters a holiday-shortened week, potentially impacting market dynamics. Investors are now turning their attention to US dynamics in the absence of pivotal Eurozone data. Upcoming US Existing Home Sales figures and insights from central bank minutes are likely to influence the trajectory of EUR/USD in the near term. Richmond Fed President Thomas Barkin's recent comments on persistent inflation have raised questions about future rate decreases, adding another layer of complexity to market forecasts. https://www.investing.com/news/forex-news/eurusd-nears-110-as-market-sentiment-shifts-fomc-minutes-awaited-93CH-3239667

2023-11-21 06:09

Copyrighted Image by: Reuters. BEIJING - In a significant move to strengthen financial ties, the People's Bank of China and the Saudi Central Bank have established a 50 billion yuan ($7.05 billion) currency swap agreement. This strategic pact, announced today, is set for a span of three years with the potential for renewal based on mutual consent. The initiative is designed to boost the use of domestic currencies in bilateral trade between China and Saudi Arabia, further cementing their economic partnership. This agreement follows a series of collaborative efforts between the two nations aimed at enhancing their economic relationship. In August, Saudi exports to China saw an uptick, reaching SR13.7 billion, indicating a diversification of trade beyond the traditional oil sector. The growing partnership was further emphasized in September through a Memorandum of Understanding that promised advancements in road construction and autonomous vehicle development, which are expected to deepen transport technology links between the countries. Additionally, China granted Approved Destination Status to Saudi Arabia, a move expected to increase group tourism and cultural exchange. In October, the cooperation extended to the literary domain, with Saudi Arabia's Literature Commission forming an alliance with China’s National Press. This collaboration aims to improve shipping routes and port operations while fostering cultural connections through joint translation projects. The currency swap agreement underscores a mutual commitment to bolstering financial collaboration and increasing trade investments using local currencies. This step is part of a broader strategy by both nations to diversify their economies and reduce reliance on US dollar transactions in international trade. https://www.investing.com/news/forex-news/china-and-saudi-arabia-sign-50-billion-yuan-currency-swap-deal-93CH-3239663