Headlines

Some bankers and traders are grappling with how to interact with Credit Suisse across various markets including debt and foreign exchange, with some increasing scrutiny when dealing with the Swiss bank or its products, sources said. On Sunday, UBS offered to pay CHF 3 billion ($3.23 billion) for Credit Suisse, a hastily-agreed merger engineered by Swiss authorities following a scramble to save the bank, Reuters reported.

The Swedish central bank might have underestimated inflationary pressure and will likely have to stick to its forecasts of another interest rate hike in April, Riksbank Governor Erik Thedeen said on Sunday, Reuters reported. The central bank has raised rates to 3% from 0% a year ago and has yet to curb 9.4% inflation, well above the 2% target. It hiked the benchmark rate by 50 basis points in February and has indicated another hike by 25 or 50 basis points in April. "It could be that the inflation process is worse than we thought," Erik Thedeen told SVT television.

The IMF, World Bank and India, current president of the Group of 20 major economies, will convene a new sovereign debt roundtable again on April 3, an IMF official said on Thursday, with an eye to accelerating work on debt relief for countries in need, Reuters reported. The gathering of deputies will be followed by a principals' meeting on the sidelines of the World Bank and International Monetary Fund spring meetings in Washington, the official said, but no firm date has been set.

Fitch Ratings on Friday cut Argentina's foreign currency rating to "C" from "CCC-" citing an "imminent" default after the country ordered public sector bodies to sell or exchange their holdings of some sovereign dollar bonds, Reuters reported. A presidential decree said on Thursday that public sector bodies would have to sell or auction five local law dollar bonds maturing between 2029 and 2041, and to swap six foreign law dollar bonds for peso debt.

Panama's economic recovery has been "very strong," but the outlook remains uncertain as growth is projected to slow to 5% this year, the International Monetary Fund (IMF) said Friday, Reuters reported. Panama faces risks of new external shocks as well as potential disruptions to copper mining after delays reaching a renewed agreement with Minera Panama, the IMF said. Canadian miner First Quantum owns a 90% interest in the Cobre Panama mine through its unit Minera Panama. Panama's inclusion on the Financial Action Task Force grey list also poses risks.

Peru's government expressed qualified interest in tapping the international bond market later this year in a bid to better manage liabilities, Economy Minister Alex Contreras said on Friday, Reuters reported. The government might turn to capital markets during the first semester of this year if opportunities exist, the economy chief said during a news conference. The minister also forecast what he described as a "moderate" economic expansion in March, and then 4% growth in April.

Nigeria’s central bank beefed up the supply of banknotes to lenders to end shortages that have hampered individual and business transactions and crippled the cash-based economy since January, Bloomberg News reported. Most lenders including United Bank for Africa Plc, Zenith Bank Plc and FBN Holdings Plc called in staff on Saturday and Sunday to help customers access cash in banks or via automated teller machines. The disbursement, in compliance with a central bank directive, is being monitored “personally” by Governor Godwin Emefiele, according to spokesman Isa Abdulmumin.

The Swiss National Bank raised its interest rate by 50 basis points and signaled more to come as it resumed its inflation fight just days after the downfall of the country’s second-biggest bank became the epicenter of global financial turmoil, Bloomberg News reported. Officials lifted the benchmark to 1.5%, an outcome predicted by most economists before Credit Suisse Group AG’s forced takeover by larger rival UBS Group AG clouded the outlook with worsened market turbulence earlier this week.

The chairman of Switzerland’s largest bank received an urgent call last week. On the other end were three top Swiss officials who delivered an ultimatum dressed up as a proposal. UBS Group AG needed to rescue its failing rival, Credit Suisse Group AG. For any country, it would be a financial emergency. For Switzerland, the stakes verged on existential, the Wall Street Journal reported. Its economic model and national identity, cultivated over centuries, were built on safeguarding the world’s wealth. It wasn’t just about a bank. Switzerland itself needed rescuing.

The Bank of England raised interest rates by a quarter-point on Thursday, its 11th consecutive rate increase, a day after data showed that Britain’s inflation rate unexpectedly increased last month, the New York Times reported. The central bank also affirmed that Britain’s banking system was “resilient” and able to withstand a period of higher interest rates, according to the minutes of this week’s meeting.