Updated 15 December 2011
The BIS effective exchange rate (EER) indices have been expanded and updated.
The basket has been broadened to include three new economies (Colombia, Luxembourg and the United Arab Emirates) bringing the total to 61 (including individual euro area countries and, separately, the euro area as an entity). In addition, to reflect changes in world trade, the indices have been updated using weights based on trade data in 2008-2010. The indices' base year has been brought forward to 2010.
Two basket compositions are available:
Broad indices comprising 61 economies, with data from 1994 (CSV, 172 kb or Excel, 191 kb)
Narrow indices comprising 27 economies, with data from 1964 (CSV, 198 kb or Excel, 240 kb)
Nominal EERs are calculated as geometric weighted averages of bilateral exchange rates. Real EERs are the same weighted averages of bilateral exchange rates adjusted by relative consumer prices. The weighting pattern is time-varying, and the most recent weights are based on trade in 2008-10 (see broad and narrow weights). The EER indices are available as monthly averages.
For an explanation of the methodology behind the BIS EER indices, see:
The new BIS effective exchange rate indices, BIS Quarterly Review, March 2006
Measuring international price and cost competitiveness, BIS Economic Papers, no 39, November 1993
The monthly effective exchange rate data will be released mid-month on a monthly basis.
Showing posts with label Bis. Show all posts
Showing posts with label Bis. Show all posts
Saturday, December 17, 2011
Sunday, December 11, 2011
BIS: Only central banks can stem liquidity crisis
December 11, 2011
BIS: Only central banks can stem liquidity crisis
London - The Bank for International Settlements Sunday issued an oblique endorsement of coordinated action by the world's largest central banks to ease funding conditions for banks.
"A freezing of interbank markets in major funding currencies, as during the recent crisis, may require the ability to supply official liquidity in major currencies in an elastic manner," the BIS wrote in its regular quarterly report. "Only the currency-issuing central banks have this ability."
The U.S. Federal Reserve 10 days ago agreed to expand, and reduce the cost of, multilateral swap lines with five other large central banks, notably the European Central Bank, in an effort to restore access to dollar funding for European banks.
Continues ...read more ..
Euro-zone banks used the new facility to borrow $50.7 billion at a rate of 0.59% at the first operation after the announcement.
The BIS's essay was its latest in a series analyzing the concept of global liquidity, and focused again on the interplay between official liquidity, that is, created by central banks, and the far greater liquidity created by the private sector on the basis of central bank money--the so-called money multiplier.
The essay observed that much is still unknown on this topic, particularly on the degree to which the accumulation of foreign exchange reserves by central banks, and their subsequent reinvestment, can affect the creation of private liquidity.
The BIS noted that the priority of policymakers should be to mitigate surges in the overall level of global liquidity. It said the new "Basel III" rules on capital and liquidity should help this trend of "counter-cyclical" policymaking.
The BIS noted that it is still impossible to track global liquidity levels with precision, but argued that international credit aggregates, especially levels of cross-border lending, have tended to act as advance indicators of trends in the past.
link
BIS: Only central banks can stem liquidity crisis
London - The Bank for International Settlements Sunday issued an oblique endorsement of coordinated action by the world's largest central banks to ease funding conditions for banks.
"A freezing of interbank markets in major funding currencies, as during the recent crisis, may require the ability to supply official liquidity in major currencies in an elastic manner," the BIS wrote in its regular quarterly report. "Only the currency-issuing central banks have this ability."
The U.S. Federal Reserve 10 days ago agreed to expand, and reduce the cost of, multilateral swap lines with five other large central banks, notably the European Central Bank, in an effort to restore access to dollar funding for European banks.
Continues ...read more ..
Euro-zone banks used the new facility to borrow $50.7 billion at a rate of 0.59% at the first operation after the announcement.
The BIS's essay was its latest in a series analyzing the concept of global liquidity, and focused again on the interplay between official liquidity, that is, created by central banks, and the far greater liquidity created by the private sector on the basis of central bank money--the so-called money multiplier.
The essay observed that much is still unknown on this topic, particularly on the degree to which the accumulation of foreign exchange reserves by central banks, and their subsequent reinvestment, can affect the creation of private liquidity.
The BIS noted that the priority of policymakers should be to mitigate surges in the overall level of global liquidity. It said the new "Basel III" rules on capital and liquidity should help this trend of "counter-cyclical" policymaking.
The BIS noted that it is still impossible to track global liquidity levels with precision, but argued that international credit aggregates, especially levels of cross-border lending, have tended to act as advance indicators of trends in the past.
link
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