Archive for June 21st, 2010

Central Bank Watch

Hungarian Monetary Policy Remains Paused

June 21, 2010

The Magyar Nemzeti Bank did not cut its 5.25% key interest rate for a second straight month, citing perceived risks associated with Hungarian fiscal assets and inflation.  A statement from officials projects export-led economic growth with domestic demand lagging.  Inflation is presently above target but already had receded to 5.1% in May from 5.9% in […] More

Deeper Analysis

Chinese Yuan Price History

June 21, 2010

The yuan depreciated 82.6% from 1.5 renminbi per dollar in 1980 to 8.62 per dollar in 1994 and had recovered 4.1% by 1997 when it was pegged at 8.277.  Note that China’s currency carries two interchangeable names, the renminbi and the yuan.  The yuan remained frozen against the dollar through the launch of the euro […] More

New Overnight Developments Abroad - Daily Update

China Unpegs Yuan Against Dollar

June 21, 2010

The yuan is 0.4% firmer against the U.S. currency following Saturday’s announcement by the central bank that “it is desirable to proceed further with reform of the renminbi exchange rate regime and increase the renminbi exchange rate flexibility.”  The action was taken one week before a summit of G-20 leaders in Toronto and against the […] More