Latest news with #foreigncurrency
Arab News
4 days ago
- Business
- Arab News
Turkish central bank gross reserves rose $7.5bn last week, traders and data say
ANKARA: Turkiye's central bank bought more foreign currency last week, lifting its total reserves by a further $7.5 billion after sharp declines in March and April, bankers' calculations from data showed on Tuesday. Market turmoil in March over the detention and jailing of Istanbul Mayor Ekrem Imamoglu, who is President Tayyip Erdogan's main political rival, triggered a policy pivot, including a hike in the bank's key interest rate last month. Bankers' calculations, based on preliminary data, also showed that the central bank's net reserves rose by $8 billion last week to $48 billion. The central bank bought some $13 billion in the last three weeks, data showed, marking a reversal after it had sold some $57 billion to help stabilize the lira and other financial markets in the face of the turmoil. Separately, overnight interest rates, which had dropped briefly to the main policy rate level of 46 percent on Friday, returned this week to 49 percent, at the upper band of the rate corridor that was also earlier raised to head off market turmoil. Traders are closely monitoring whether overnight rates will hover close to the upper band of the rate corridor — 49 percent — in the coming days, for further signals on the policy path ahead. Bankers have said that lowering overnight market rates would be a necessary step before the central bank resumes its easing cycle, which began in December but was reversed in April in the wake of the mayor's arrest and jailing. The bank's next two scheduled policy meetings will be on June 19 and July 24.
Zawya
4 days ago
- Business
- Zawya
Turkish central bank gross reserves rose $7.5bln last week, traders and data say
ANKARA - Turkey's central bank bought more foreign currency last week, lifting its total reserves by a further $7.5 billion after sharp declines in March and April, bankers' calculations from data showed on Tuesday. Market turmoil in March over the detention and jailing of Istanbul Mayor Ekrem Imamoglu, who is President Tayyip Erdogan's main political rival, triggered a policy pivot, including a hike in the bank's key interest rate last month. Bankers' calculations, based on preliminary data, also showed that the central bank's net reserves rose by $8 billion last week to $48 billion. The central bank bought some $13 billion in the last three weeks, data showed, marking a reversal after it had sold some $57 billion to help stabilize the lira and other financial markets in the face of the turmoil. Separately, overnight interest rates, which had dropped briefly to the main policy rate level of 46% on Friday, returned this week to 49%, at the upper band of the rate corridor that was also earlier raised to head off market turmoil. Traders are closely monitoring whether overnight rates will hover close to the upper band of the rate corridor - 49% - in the coming days, for further signals on the policy path ahead. Bankers have said that lowering overnight market rates would be a necessary step before the central bank resumes its easing cycle, which began in December but was reversed in April in the wake of the mayor's arrest and jailing. The bank's next two scheduled policy meetings will be on June 19 and July 24.
Yahoo
24-05-2025
- Business
- Yahoo
Best currency ETFs
Currency ETFs give investors a simple way to gain exposure to different currencies. These funds can be used for diversification, to speculate on currencies or to hedge your exposure to a certain currency. Here are some of the top currency ETFs to consider for your portfolio. Currency ETFs are exchange-traded funds that are designed to track the performance of a single currency or a basket of currencies. Some currency ETFs may be backed by bank deposits in a foreign currency, while others use derivatives to manage their currency exposure. Currency ETFs can be used to diversify your portfolio, hedge your exposure to a certain currency, or to speculate on the movement of a currency. Currencies can move in response to various economic factors, changes in interest rates and geopolitical events. *Data as of May 21, 2025 This ETF aims to provide total returns before expenses that exceed the performance of the Bloomberg Dollar Total Return Index. The fund offers exposure to the U.S. dollar against a basket of foreign currencies. 1-year return: 3.2 percent Assets: $169.3 million Expense ratio: 0.50 percent This fund is designed for investors who want to track the value of the U.S. dollar relative to a basket of six major world currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. 1-year return: 0.4 percent Assets: $276.1 million Expense ratio: 0.75 percent This ETF is designed to track the price of the euro, which is the currency for 20 European Union countries. 1-year return: 6.1 percent Assets: $523.5 million Expense ratio: 0.40 percent This fund is designed to track the price of the Japanese yen, the national currency of Japan. The Japanese yen is among the most widely traded currencies in the world. 1-year return: 8.3 percent Assets: $862.9 million Expense ratio: 0.40 percent This ETF is designed to track the price of the British pound sterling. The British pound sterling is the official currency of the United Kingdom, which includes England, Wales, Scotland and Northern Ireland. 1-year return: 8.7 percent Assets: $77.6 million Expense ratio: 0.40 percent This fund is designed to track the price of the Swiss franc, which is the national currency of Switzerland and Lichtenstein. 1-year return: 10.1 percent Assets: $473.5 million Expense ratio: 0.40 percent Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
Bloomberg
22-05-2025
- Business
- Bloomberg
Ghana Expects $12 Billion a Year From Small-Scale Gold Mining
Ghana expects to rake in $12 billion a year from small-scale gold production if output doubles as planned. Gold exports from the country have surged as international prices have soared, and much of that expansion is down to small-mine and artisanal production. The government this year set up a regulator to handle all gold buying and selling, hoping to boost foreign-currency reserves and curb black-market trading.
Free Malaysia Today
22-05-2025
- Business
- Free Malaysia Today
Ringgit may gain most in SE Asia on exporter conversion
The ringgit became Southeast Asia's second-largest gainer this year as investors focused on firms converting foreign deposits into local currency. (Reuters pic) KUALA LUMPUR : Malaysia's ringgit stands to gain the most among its Southeast Asian peers if the nation's exporters convert their overseas earnings to the local currency, thanks to the nation's outsized foreign-currency deposits. Such deposits in Malaysia, Thailand, the Philippines and Indonesia combined have jumped to US$62.2 billion as of March, close to a record high set in the previous month, according to Bloomberg calculations. Malaysia made up almost all of it and the nation's foreign deposit growth also outpaced most of its peers. Foreign deposits in the region are coming under greater focus as investors watch for signs of companies converting them to local currencies, as market perception of the dollar sours due to concern over US policymaking and its economic outlook. Heavy foreign-exchange sales by Taiwanese exporters earlier this month helped the local dollar post its biggest single-day jump since 1988. 'Acceleration in broad dollar softness may risk triggering exporters rushing to sell their dollar holdings and that cycle, if it happens, it may result in excessive local currency strength,' said Christopher Wong, a senior foreign-exchange strategist at Oversea-Chinese Banking Corp. Most major Southeast Asian currencies have already rallied to their highest levels this year amid the dollar's decline and as a temporary trade truce between the US and China improved market sentiment. While excessive currency gains may invite the ire of local authorities, some appreciation may be welcomed as it would open the door for further interest-rate cuts by reducing the depreciation pressure on local currencies. The ringgit was the second-biggest gainer among emerging market currencies in Southeast Asia so far this year with a rise of 5%. Earlier this year, the nation's policymakers urged exporters to convert their earnings into ringgit in a more timely manner to help buoy the local currency. Malaysia's foreign deposits grew to 10.6% of the total as of March, according to latest data from the nation's central bank. That's 1.6 standard deviations higher than the five-year average. The same gauge for Thailand, the Philippines and Indonesia stood at 2, 1.3 and 1.1, respectively. Southeast Asian investors loaded up on dollar-denominated investments during a period of rising returns on US assets. The Federal Reserve's aggressive rate hike cycle in 2022 and 2023 took the upper bound of the Fed fund rate to 5.50% — higher than even the policy rates in Thailand and Malaysia. Currency returns provided another incentive, with the Bloomberg Dollar Spot Index rising 10.5% in the five years to the end of 2024. While investors have pared extreme bearishness over dollar assets seen in April — when President Donald Trump announced reciprocal tariffs and spurred doubts over the Fed's independence — the US fiscal stance is giving investors another reason to shun the greenback. 'Asian exporters should continue to convert their dollars into local currencies, after several years of building up dollar deposits,' Goldman Sachs Group Inc strategist Danny Suwanapruti wrote in a note last week. The bank favours the ringgit, Singaporean dollar, won and the Taiwanese dollar if trade deals are reached, the yuan rallies to 7 per dollar and if exporters continue to sell the greenback.
