Small Exchange: India’s currency chests, ANZ settles with ACCC, China’s yuan stabalises
The week's currency news rounded up.
India employs currency chests to ease monetary congestion
India's reserve bank has decided to allow banking institutions and some post offices to secure outgoing 500 and 1,000 rupee banknotes in new currency chests at distribution points across the country.
The separate vaults will help to decongest storage facilities, according to The Economic Times.
Banks must deposit notes in sealed boxes and will then receive the value back in the form of credit from their nominated chest branch.
So far, there have been US$80 billion dollars in deposits, with a significant portion invested into bonds.
ANZ reaches agreement with ACCC
ANZ announced it had reached a settlement agreement with the Australian Competition & Consumer Commission (ACCC) in reference to alleged misconduct by three former employees based in Singapore.
ANZ agreed the employees unsuccessfully attempted to influence benchmark rates used to settle Non-Deliverable Forward (NDF) contracts for the Malaysian Ringgit on 10 occasions in 2011.
The bank will pay a $9 million penalty, subject to court approval.
China's yuan remains relatively stable
The value of the yuan against the US dollar sank to its lowest point in eight and a half years last week.
The decline in value was spurred by Donald Trump's surprise US presidential election victory and Brexit.
However, during a televised interview, People's Bank of China vice governor Yi Gang said China's international balance of payments are "basically stable" and the country's merchandise trade surplus remains "relatively large".
The yuan has lost more than 6% against the dollar in 2016, including about 2% since Trump's election.
Yi said the yuan had fallen less than other currencies against the dollar, a sign of stability and strength.
Each week Small Exchange sums up currency news from around the globe and looks at how it impacts exchange rates and options.
- Small Exchange: India under pressure, Venezuelan currency houses and tourism
- Small Exchange: Challenges abroad for India, US
- Small Exchange: Mexico jumps, China tightens, India delays
- Australians send millions in overseas transfers before holidays
- Small Exchange: India, British exchange rates and Australia’s $100 note