Monetary Policy

China’s Currency Peg: The Chinese yuan has had a currency peg since 1997. Initially, it was pegged to the U.S. dollar, but since 2005, it has been managed against a basket of currencies with weightings determined by trade levels with foreign partners. The currency is restricted from floating more than 2% against a fixed level. […]

The Mumbai Interbank Bid Rate (MIBID) is a synthetic benchmark interest rate utilized by banks in the Indian interbank market. It represents the rate at which a bank borrows funds from another participating institution. This rate is pivotal for setting other interest rates within the financial market. Launched in 1988 by the National Stock Exchange

Demonetization is the process of stripping a currency unit of its status as legal tender, often occurring with changes in national currency. This involves pulling the current form or forms of money from circulation and retiring them, frequently to be replaced with new notes or coins. In some instances, a country may completely replace the

As a newcomer to cryptocurrency investments, one of the first considerations is the secure purchase and storage of cryptocurrency. It’s crucial to know where and how to store your crypto before making a purchase to avoid any early setbacks in your investment journey. Unlike traditional bank accounts, cryptocurrencies must be stored in specialized wallets on

A currency reserve is a significant component of foreign exchange reserves held by governments and institutions in large amounts. These reserves often serve as the international pricing mechanisms for commodities such as oil, natural gas, gold, and silver, compelling other countries to hold these currencies to facilitate trade. The U.S. dollar stands as the primary

Import Substitution Industrialization (ISI) is an economic theory that is typically adhered to by developing countries or emerging market nations as they seek to decrease their dependence on developed countries. The approach targets the protection and incubation of newly-formed domestic industries to fully develop sectors so the goods produced are competitive with imported goods. This

Influencing macroeconomic outcomes is typically achieved through two primary courses of action: fiscal policy and monetary policy. Monetary policy, managed by central banks, involves the manipulation of money supply and interest rates. To stimulate a faltering economy, central banks cut interest rates, reducing borrowing costs and increasing the money supply. Conversely, to curb rapid economic

During the 1970s, the United States experienced what is now known as the Great Inflation. The stock market was in disarray, having lost nearly 50% of its value over a 20-month period. For nearly a decade, stocks were shunned by investors. Economic growth was weak, leading to rising unemployment that eventually reached double digits. The

What Is the Bank of England (BoE)? The Bank of England (BoE) is the central bank of the United Kingdom. It oversees the nation’s monetary policy, issues its currency, regulates banks, financial institutions, and payment systems. It is the U.K. equivalent of the Federal Reserve in the U.S. Like the central banks of other nations,

Common Equity Tier 1 (CET1) is a component of Tier 1 capital and mainly consists of common stock held by a bank or other financial institution. CET1 is a capital measure introduced in 2014 as a precaution to protect the economy from a financial crisis. Banks are required to meet the minimum CET1 ratio requirements