Latest news with #foreignexchange
Bloomberg
8 hours ago
- Business
- Bloomberg
Milei's FX Gambit Sparks Sharpest Demand for Dollars Since 2019
Demand for dollars in Argentina hit its highest since 2019 after President Javier Milei all but eliminated foreign-exchange restrictions in the crisis-prone South American nation. About a million Argentines purchased a net total of $1.9 billion worth of greenbacks in April, according to central bank data. That's up sharply from March, when 34,000 people bought just $6 million in US currency.
National Post
15 hours ago
- Business
- National Post
Corpay Cross-Border Named an Official Partner of Real Madrid C.F.
Article content Article content Article content TORONTO — Corpay, Inc.*, (NYSE: CPAY) a global leader in corporate payments, is pleased to announce that Corpay's Cross-Border business has entered into an agreement with Real Madrid C.F. to become an Official Partner. Article content Through this partnership, Real Madrid will be able to gain access to and utilise Corpay Cross Border's innovative solutions to help mitigate foreign exchange exposure from their day-to-day business needs. Article content 'The Corpay Cross-Border team is elated to be named an Official Partner of Real Madrid, one of the world's most widely recognized and followed sports franchises,' said Brad Loder, Chief Marketing Officer, Corpay Cross-Border Solutions. 'With our strong focus on growing the Corpay brand, as well as our currency risk management business, we are excited to partner with one of the most successful football clubs in the world.' Article content About Corpay Corpay, Inc. (NYSE: CPAY) is a global S&P500 corporate payments company that helps businesses and consumers pay expenses in a simple, controlled manner. Corpay's suite of modern payment solutions help its customers better manage vehicle-related expenses (such as fueling and parking), travel expenses (e.g. hotel bookings) and payables (e.g. paying vendors). This results in our customers saving time and ultimately spending less. Corpay Cross-Border refers to a group of legal entities owned and operated by Corpay, Inc. Article content Corpay – Payments made easy. To learn more visit Article content About Real Madrid C.F. Real Madrid C.F. is a sport entity with 123 years of history. It is the club with the most European Cups of both football (15) and basketball (11) and was awarded by FIFA as the Best Club of the twentieth century. Real Madrid has millions of fans in all corners of the world, with more than 620 million followers on social media, being the strongest football brand in the world according to Brand Finance for the third year in a row and also the highest earning football club in the world in the 23-24 season (Football Money League by Deloitte). More information about Real Madrid C.F. is available at the most visited football club website for the seventh consecutive year. Article content Article content Article content Article content Article content Article content
Times of Oman
a day ago
- Business
- Times of Oman
India's forex reserves jump about $7 billion in week ending May 23
New Delhi: India's foreign exchange reserves (forex) jumped $6.992 billion to $692.721 billion in the week ending May 23, official data released by the Reserve Bank of India showed. Estimates suggest that India's foreign exchange reserves sufficiently cover approximately 10-12 months of projected imports. With this weekly jump, the forex kitty is quite close to its all-time high of USD 704.89 billion, reached in September 2024. The latest RBI data showed that India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 586.167 billion. The gold reserves currently amount to USD 83.582 billion, according to RBI data. Central banks worldwide are increasingly accumulating safe-haven gold in their foreign exchange reserves kitty, and India is no exception. The share of gold maintained by the Reserve Bank of India (RBI) in its foreign exchange reserves has almost doubled since 2021. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion. Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling. The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.
Reuters
3 days ago
- Business
- Reuters
Why the dollar's wobble could be self-perpetuating
LONDON, May 29 (Reuters Breakingviews) - Foreign currency hedging is not a topic that usually dominates the water-cooler chats on trading floors. Right now, however, it's front of mind for many of the biggest players in financial markets. The U.S. dollar's unusual moves in April, when it fell in tandem with stocks, has cast doubt over a long-lasting relationship between the greenback and risky assets. Over time, it might nudge non-U.S. investors to hedge more or reduce their exposure to American stocks and bonds. Both could create a self-reinforcing downward cycle for the dollar. Investing abroad is a tricky business for money managers with liabilities denominated in the currency of their home country. Think German or Japanese insurers, whose policies are written in euros and yen, or Canadian and Australian pension funds, whose beneficiaries expect to finance their retirement in Canadian and Aussie dollars. Buying shares and debt issued by companies in other countries introduces the danger that foreign exchange swings will reduce the value of the investments in local-currency terms, even if the underlying returns are good. That is why investors tend to use foreign exchange forwards and other derivatives to hedge currency risks, effectively swapping far-flung exposures into domestic ones. The beauty of holding U.S. assets, though, is that the dollar tends to strengthen when the market panics. In money-manager speak, it's an anti-cyclical currency, which means investment bosses can get away with minimal protection against foreign exchange risk on giant portfolios of American stocks and bonds. It also helps that the dollar has generally risen in recent years, providing foreign investors with an extra boost to their overall returns. One study, opens new tab, published by the National Bureau of Economic Research, found that foreign insurers, pension funds and mutual funds hedged 44%, 35% and 21% of their respective dollar portfolios in 2020, with much higher ratios for bonds compared to stocks. Apply that range to the $30 trillion of total American assets held by non-U.S. investors as of last year, and the implication is that anywhere between $24 trillion and $17 trillion could be unhedged. Take the Canada Pension Plan Investment Board for example. U.S. dollar exposures account, opens new tab for more than half of its net investments of $520 billion, but are minimally hedged, according to a person familiar with the portfolio. Several people involved in the running of different Canadian retirement funds told Breakingviews that the safe-haven nature of the greenback was a key reason for relatively low hedge ratios. Japan's giant Government Pension Investment Fund, meanwhile, had invested almost a third of its $1.7 trillion portfolio in American assets as of March 2024 with slightly more than half in stocks and the rest in bonds. The U.S. exposure was almost entirely unhedged, a person familiar with the matter told Breakingviews. According to traders and analysts these large so-called 'open' positions in U.S. assets have caught the attention of currency market players in recent months, for two reasons. First, the dollar didn't live up to its safe-haven billing after U.S. President Donald Trump's tariff plan tanked stocks in early April. The greenback fell roughly 5% against a basket of other rich-world currencies and failed to rebound alongside the S&P 500 Index when trade tensions cooled. The upshot for foreign investors is that volatile U.S. policymaking may cause the dollar to gyrate in the same way as equity markets. If that becomes the norm, foreign investors' risk models would over time call for much more dollar hedging. The second consideration is that Trump and his advisers seem set on weakening the currency in a bid to boost exports. That is cementing a sense in foreign currency markets that the dollar is unlikely to see another 2022-style surge in strength, meaning overseas investors may be more likely to get a drag from the greenback rather than a lift. One open question is whether it is even possible for large pension funds and insurers to meaningfully increase the proportion of their dollar portfolios that are hedged. In places where local institutions' holdings of U.S. assets are large relative to the local market, such as Taiwan or Nordic countries like Sweden, a big increase in demand for FX derivatives could meaningfully affect the value of the domestic currency. The Taiwan dollar's recent surge against the greenback looks like a case in point. Even in deeper markets like the Japanese yen, euro or Canadian dollar, hedging comes at a price. The typical method is to use forward contracts, which involves locking in an exchange rate by agreeing to buy one currency and sell another at a future date. The cost is largely determined by the difference in government bond yields between the two markets. Relatively high U.S. interest rates therefore make it expensive for local investors to hedge their dollar exposure. One-year contracts currently imply a roughly 2% annual cost for Canadian and European investors and 4% for those in Japan, according to Breakingviews calculations. The implication is that institutions which hedge an extra quarter of their U.S. portfolio could reduce returns by 0.5 percentage points to 1 percentage point, all else being equal. That raises the bar for holding American assets relative to home-country ones. The alternative to extra hedging is for big institutional investors to shrink their exposure to the U.S., for example by investing the marginal euro, yen or loonie elsewhere. Pension managers and insurers generally take months or years to change their investment policies, meaning any shift won't be immediate. Yet there are signs that both may already be happening in a small way. Traders and investors say the recent slide in the dollar is partly due to extra hedging activity, which mechanically weakens the currency that is being hedged. Meanwhile, non-U.S. participation in a recent 30-year Treasury bond auction was the lowest since 2019, Reuters reported. The danger, from a dollar holder's perspective, is that these trends reinforce one another. A weaker and more volatile greenback may inflict losses on foreign owners of U.S. assets, inducing them to sell or hedge more, in turn weakening the currency even further. At some point American assets might look cheap enough for global investors to pile back in – but not before the dollar falls further. Follow @Breakingviews, opens new tab on X
National Post
5 days ago
- Business
- National Post
Corpay Named the Official Foreign Exchange Provider of Major League Soccer
Article content Article content TORONTO — Corpay, Inc.*, (NYSE: CPAY) a global leader in corporate payments, is pleased to announce that Corpay's Cross-Border business has entered into a multi-year agreement with Major League Soccer (MLS) to become the league's Official Foreign Exchange (FX) Provider. Article content Through this collaboration, MLS will have access to Corpay Cross Border's innovative solutions to help mitigate foreign exchange exposure from day-to-day business needs. Additionally, Corpay Cross-Border's award-winning platform will enable the league to manage global payments from a single point of access. Article content 'The Corpay Cross-Border team is honored to be named the Official FX Provider for MLS, the top-tier professional soccer league in the United States and Canada,' said Brad Loder, Chief Marketing Officer, Corpay Cross-Border Solutions. 'I am confident that MLS and the league's network of corporate business partners will benefit from access to our comprehensive cross-border payments and currency risk management solutions, along with our experience gained within the world of sports.' Article content 'We are thrilled to welcome Corpay as the Official Foreign Exchange Provider of MLS,' said Greg Millard, MLS SVP, Brand Alliances. 'MLS is part of the global game, and we look forward to working with Corpay to make our foreign exchange practices more efficient.' Article content The announcement between MLS and Corpay arrives during a period of great momentum behind the sport of soccer in North America. As MLS is underway in its 30 th season, the U.S. is also preparing to host the Concacaf Gold Cup and FIFA Club World Cup taking place in 2025, as well as the FIFA World Cup across the U.S., Canada and Mexico in 2026. Article content About Corpay Corpay, Inc. (NYSE: CPAY) is a global S&P500 corporate payments company that helps businesses and consumers pay expenses in a simple, controlled manner. Corpay's suite of modern payment solutions help its customers better manage vehicle-related expenses (such as fueling and parking), travel expenses (e.g. hotel bookings) and payables (e.g. paying vendors). This results in our customers saving time and ultimately spending less. Corpay Cross-Border refers to a group of legal entities owned and operated by Corpay, Inc. Article content About Major League Soccer Headquartered in New York City, Major League Soccer — celebrating its 30th season in 2025 — features 30 clubs throughout the United States and Canada. All MLS, Leagues Cup, and select MLS NEXT Pro and MLS NEXT matches can be watched through MLS Season Pass, available on the Apple TV app on Apple devices, smart TVs, streaming devices, set-top boxes, and game consoles, and the web at MLS Season Pass features the most expansive and accessible lineup of programming ever for MLS fans. For more information about MLS, visit For more information about the Apple TV app, visit Article content Article content Article content Article content Article content Contacts Article content Media Contacts Article content Corpay Brad Loder Chief Marketing Officer Corpay Cross-Border Solutions +1 (647) 627-6635 Article content Article content Article content
