Small Exchange: Settling currency manipulation cases, Trinidad’s forex woes and India breaks more records
This week's currency news rounded up.
More banks settle claims in global currency manipulation case
As of October 2015, US$2 billion had been paid in settlement claims by a number of the world's largest banks after regulators accused the financial institutions of rigging foreign exchange currency markets.
Now, five more banks have agreed to pay a total of US$111 million to settle these claims. This brings the total number of banks settled to 14 out of 16 accused, the Telegraph reports.
Morgan Stanley paid $50 million, Standard Chartered handed over $17.2 million, Societe Generale settled with $17.2 million, Royal Bank of Canada agreed to $15.5 million and Bank of Tokyo-Mitsubishi UFJ forked over $10.5 million.
Trinidad and Tobago's forex sales skyrocket
Trinidad and Tobago's foreign exchange market is buckling under the pressures of a continued rise in the demand for international currency, according to the latest Central Bank of Trinidad and Tobago Monetary Policy Report.
As a result of increased government spending on energy imports and a burgeoning services account deficit, the central bank "continued to support the market with bi-weekly sales of foreign exchange to authorised foreign exchange dealers".
During the first five months of 2017 the bank sold US$810 million to authorised dealers. This represents a rise of 41.6% compared to the same period in 2016. The weighted average selling rate of the local currency was $6.78 to US$1 in May 2017, according to the report.
India's foreign reserves break more records
The latest Reserve Bank of India (RBI) data reveals the country's forex reserves peaked at a new record high of US$391.33 billion in the final weeks of July.
Foreign exchange reserves jumped US$2.27 billion in the week to 21 July 2017, assisted by increases in foreign currency assets (FCAs). The RBI reports FCAs rose US$2.24 billion to US$367.15 billion during this period.
Previously, India's forex reserves rose $4 billion at the end of June, peaking at a record high $386.5 billion.
Each week Small Exchange sums up currency news from around the globe and looks into how it impacts exchange rates and options.