Small Exchange: Turkey regulating foreign exchange, rates improving in PNG and G7 leaders maintain forex stance
This week's currency news rounded up.
Turkey to strengthen foreign exchange regulations
During an interview with Anadolu Agency, Turkey's deputy prime minister Mehmet Şimşek revealed the government plans to formulate regulations to better control foreign exchange and improve data records.
Hurriyet Daily News reports evaluations carried out by the Turkish government's Treasury department found transactions by forex offices were not being effectively monitored and there exists no statistical data aboutsaid transactions.
Şimşek said there was a need to transform foreign exchange branches to more institutional structures, separating them according to the size of their capital and operating subjects.
"With the regulations, we will more effectively inspect foreign exchange offices, improve their transparency, financial infrastructure and credibility," he said.
"In addition, they will be able do transactions via ATMs, internet and debit cards. Thus, the use of financial technology will be widespread and market data monitored more closely by private information systems."
Forex rate improving in Papua New Guinea
Papua New Guinea's central bank governor Loi Bakani has announced an improvement in the country's foreign exchange rate, however, there is a stockpile of non-allocated funds.
"We have had PGK 13 billion on average for the last five to six years, which is adequate to supply the needs, then the question is, why this backlog?" Bakani said.
He says there is a lack of clearing mechanisms to allocate forex funds. In addition, the country's three big banks, ANZ, BSP and Westpac, only deal with their in-house transactions and don't share any surplus.
G7 leaders reaffirm forex stance
The final communique from the latest G7 leaders meeting reiterates the group's existing commitment to market-determined exchange rates.
CNBC reports finance ministers and central bank governors from the seven countries agreed to continue to use all policy tools available to help boost economic growth.
"We reaffirm our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic policy objectives, using domestic instruments and we will not target exchange rates for competitive purposes," the communique said.
Each week Small Exchange sums up currency news from around the globe and looks into how it impacts exchange rates and options.