Small Exchange: G20 still against competitive forex devaluations, Malaysia’s liberalisation and Westpac and ANZ fined for market misconduct
This week's currency news rounded up.
G20 still against competitive forex devaluations
Financial luminaries from the world's biggest economies gathered at a G20 summit over the weekend, echoing their long-established standpoint against competitive devaluations of foreign exchange markets.
This reaffirmation is good news for forex markets and should keep volatility low, Economic Times reports.
Early reports indicated that the G20 group had removed much of the moderate language previously stated.
"We may open on Monday with modest dollar weakness thanks to the failure to agree on trade, but it would have been a lot worse if there were major changes to the FX language on top of that," State Street managing director Tim Graf said.
Malaysia to introduce "liberalisation" measures
Malaysia's prime minister Najib Razak says the country's central bank, Bank Negara Malaysia, will put forward "liberalisation" measures, aimed at developing the market for foreign exchange, bonds and money to meet market participants' demand and allow local businesses to manage currency exposure.
Westpac and ANZ fined for market misconduct
The Australian Securities and Investments Commission (ASIC) reports that employees of Westpac and ANZ disclosed confidential information about customer orders to external traders in the wholesale forex market between 2008 and 2013.
ASIC said that the banks failed to ensure that their systems and controls were able to stop inappropriate conduct.
ANZ and Westpac will give $3 million each to not-for-profit Financial Literacy Australia.
Each week Small Exchange sums up currency news from around the globe and looks into how it impacts exchange rates and options.