China buys gold supply pushing price of gold up

China buys gold supply pushing price of gold up

Economy
Few days ago, China bought gold supply pushing the prices of gold up. Gold prices rose above 2,400 USD per ounce on Friday 12.04.2024. The price of gold may get a final boost as the tensions in Middle East rises. The gold price was a close prediction of Goldman Sachs who said in their report that expectation for this quarter of year gold price will go above 2,300 USD per ounce. Investigation the changes Goldman Sachs hiked its year-end gold price forecast to expect the gold price to rise above 2,700 USD to end of the year. Not only gold price rose above we saw platinum who trade for 1,000 USD per ounce and hit his highest level in last 5 months. Price of silver fell but only for 1%…
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EU banks warned of the risk of the European leaders’ plan to confiscate Russian assets and income.

EU banks warned of the risk of the European leaders’ plan to confiscate Russian assets and income.

Bank news
The news that spread on social networks and the media raised the issue of an illegal attempt to confiscate and distribute interest rates on frozen Russian assets, which some experts claim would cause a chain reaction of negative bank events on the European market. Since the beginning of the war between Russia and Ukraine, and the freezing of Russian assets in the European Union, some Western banks have lobbied against the EU's proposal to redistribute interest from billions of euros of frozen Russian assets. There is reason to be concerned because this would lead to expensive litigation in which Russia would be the ultimate winner. Despite the fact that the leaders of the European Union agreed to support Ukraine in the war against Russia with support of 3 billion euros…
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Central bank of Brazil cuts interest rates by 50bps

Central bank of Brazil cuts interest rates by 50bps

Bank news
At an event organized by the consulting firm APCE, the director of monetary policy of the Brazilian central bank, Gabriel Galipolo, presented facts according to which possible changes in monetary easing will not be correlated with interest rates at the end of the easing cycle. He stated, "The manner in which the disinflation process unfolds and the rate of interest rate reduction, as well as possible indicators, will not mean a correlation with the terminal rate." Adopting a pace of reduction of 50 basis points in order to take advantage of all the advantages that are obvious and gain time was the goal. This goal is another prediction with the help of which the bank will see how things will unfold in the future. With this move, the central bank…
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Inflation is tamed says Bank for International Settlements

Inflation is tamed says Bank for International Settlements

Bank news
The creator of monetary policy Bank of International Settlement in there quarterly report said that inflation is tamed and under control. There was however reason for „cautious optimism“ because central banks have taken action to prevent inflation strengthens said head of the Monetary and Economic Department of the BIS, Claudio Borio. "At the same time, economic activity has been remarkably resilient and the financial system has held up well." BIS is starting to be optimistic for future inflation stagnation because of progress and effort that central banks have accomplished to the end of last year. Even if there was a significant chance, that this inflation escalate and spread, monetary policy will change and stop it. Claudio Borio said that „day light“, started to narrow between time when markets expect interest…
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Europe central bank reported first loss after almost 20 year.

Europe central bank reported first loss after almost 20 year.

Bank news
Europe central bank reported first loss after almost 20 year. Many have seen some changes in rates who sky jumped in 2023 making loans expensive. All members of EU and non-EU countries who use EURO are concerned about what will happen in future with EURO zone.   This was one necessary step to stop losing money says ECB and announced a rate cut in 2024. The ECB lose last year €1.3 billion because of high inflation who have done enough damage to economy in Europe. All financial risks and losses of ECB need to stop so that economies can start grow again. The growth of Europe economy is slowing down rapidly in 2023 and 2024.  All this caused by high inflation and job losses last year. Many businesses have failed…
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American and Europe banks close more than 55 branches

American and Europe banks close more than 55 branches

Bank news
New year started in hope to see a better day in our financial sector and we are getting news about Bank branches closing across Europa and USA. The plan to close bank branches will be devastating for business and communities. Europa and USA banks started to announce a branches closing this year. Danske Bank in Ireland announcement on Friday that it will close another four branches, but that will not result in job losses. This will happen in June and branches in Carrick Fergus, Saint field, Knock (east Belfast) and Shipquay place will be closed.  Danske bank has closed 59 branches from 2010 in Ireland. Ulster Bank in Ireland announcement to close 10 branches starting from February 20. John O’ Connell FSU general secretary said over 30% of branches network…
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ECB concerned over early signs of bank run

ECB concerned over early signs of bank run

Bank news
The central bank of European Union analyzed data and early warning indicators who have showed that some banks may experience a bank run. ECB has asked some banks to monitor activity on social media and detect early signs of bank run. The financial problem where client rush to bank to withdraw cash and pull deposits at the same time it’s called (bank run). This specific banking crisis already happened in 2023 when Credit Suisse client withdraw more than 100 Billion Swiss francs. This banking crisis appear to be the most persistent. The probability of a bank run is 50% the reason for the increased percentage is the economic situation and the fear of users of banking services. One of the recent events in 2023 was bank run of Silicon Valley…
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Advantages and disadvantages of central bank digital currency

Advantages and disadvantages of central bank digital currency

Economy
A large number of CBDC supporters are gradually implementing the digital currency, the reason being the fast transfer of money as well as cheaper transaction costs. In addition to the benefits that this technology offers, the majority of users of banking services are not interested or distrustful of the digital currency that is slowly being formed without the consent of the population in the states. Most central banks are working on a study to justify digital money and its services. Here are some advantages and disadvantages of CBDC. Advantages of CBDC: Speed ​​of transactions, Reduction of transaction costs, Fast international transactions (current transactions only work with certain currencies), Stimulating economic development, Quick way of tax collection, Better control of monetary policy, Integration with new technologies and devices, Reduction of illegal…
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Sweden to become first cashless country in Europe by 2026

Sweden to become first cashless country in Europe by 2026

Economy
Signs read, "No cash payment in this store" is something that you see in many stores in Sweden. As announced Sweden, will stop accept bills before 2025. Right now, many countries in Europe and around the world have stopped to exchange Swedish krone. However, there are numerous reasons for such behavior one of them are digital currency. In 2018 Sweden central bank sad that the proportion of purchases in shops using cash dropped from about 40% to 13%. Now everyone in Sweden take cards or a mobile payment system to pay goods and services. Riksbank announced a work on e-krona who are entering new phase. One-step closer to cashless society and right now a focus on the design of an e-krone. This ongoing international work on central bank digital currency…
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ECB concern over Greece non-bank financial institutions (NBFIs)

ECB concern over Greece non-bank financial institutions (NBFIs)

Bank news
Greece passed a new low that allows non-bank financial institution (NBFIs) to lend money to households and businesses. Regarding non-banking financial institutions that somehow increase the concerns of the European Central Bank may be a just cause. The European Central Bank does not supervise these non-banking financial institutions in Greece. Problems like uncontrolled money lending is a concern but the Greece central bank is the main supervisor of those non-bank financial institutions (NBFIs). ECB says: „The growth of the NBFI sector over the last decade globally, including in Europe, is a source of concern. This is because, in general, the sector is opaque, which means that risks that are not within banking supervisors’ line of sight could be developing. These risks could include the build-up of synthetic and financial leverage,…
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