China: China’s Yuan Dips In Widened Band, But Scope For Big Swings Seen Limited
CNBC reports that opening markets on Monday saw China’s yuan easing against the dollar on Monday after the Central Bank doubled the currency’s daily trading band as part of its commitment to let markets play a greater role in the economy.
Ukraine: East-West Standoff Complicates Any IMF Deal For Ukraine
According to Reuters, bond prices in Ukraine are holding up better than expected following the Crimea referendum. Reuters said that investors think the International Monetary Fund might not impose tough conditions in an expected aid program due to Kiev’s political importance to the West.
Asia: Asian Markets ‘Brush off’ Worries About Crimea
Following the referendum in Crimea, BBC reports that the fallout in the Asian markets was relatively minimal on 17 March. However, there are reports of huge flights of capital outside of the US by the Russians ahead of the sanctions. In addition, BBC reports that another factor that could affect markets this week is China’s decision to double the Yuan’s daily trading band against the US dollar to 2.0%.
United Kingdom: Scottish First Minister Salmond Recommends A Shared Sterling Union After Scotland’s Independence
As stated by the BBC, Scotland’s First Minister Alex Salmond said that a shared Sterling currency after independence was the best option both for the UK and an independent Scotland. Conversely, UK Chancellor George Osborne insisted on the fact that a currency unit would not happen.
South Korea: Incoming BOK Governor Sees Korea Rate Increase Looming: Economy
As Bloomberg reports, Incoming Bank of Korea Governor Lee Ju Yeol said South Korean households need to prepare for higher interest rates, bolstering analysts’ forecasts for an increase as inflation picks up.