Headlines

Lebanon's embattled currency hit a new low Tuesday, trading at an unprecedented 100,000 Lebanese pounds to the dollar on the black market as the crisis-hit country's banks went back on strike, the Associated Press reported. The pound has kept sinking since Lebanon's financial meltdown erupted in 2019, following decades of rampant corruption and mismanagement by the country's political and financial elite. Three-quarters of Lebanon's population of over 6 million now lives in poverty and inflation is soaring.

Chinese money brokers are preparing to suspend their data feed businesses in the coming days after being instructed to do so by Chinese regulators on Tuesday due to data security concerns, sources familiar with the matter told Reuters. The brokers, which include the local joint ventures of Tullett Prebon and NEX International Ltd, currently feed price quotes to data vendors such as Wind Information Co and Sumscope Information Technology Co, and the move could potentially slow trading in the country's money and bond markets.

China’s Embassy in Washington, D.C., said that it would again permit foreign tourists to visit the country, a major easing of travel restrictions put in place early in the Covid-19 pandemic, the Wall Street Journal reported. Step by step, China has been permitting more foreigners to enter the country in recent months, including in January when it opened its borders to let Chinese begin traveling overseas again. It also made it easier for business travelers to enter.

New Zealand’s international tourist sector disappeared overnight when the country became one of the first to seal its borders at the beginning of the COVID outbreak in early 2020. But since borders fully reopened in August, foreign tourists have been making their way back and are responsible for one of the main bright spots for an economy battling headwinds as a possible recession looms, Reuters reported.

Nigeria’s central bank has extended the timeline to swap out its old currency for redesigned notes after the change triggered a cash shortage, forcing businesses to close and leaving millions unable to withdraw their money, the Associated Press reported. The Central Bank of Nigeria announced on Monday that the old notes of 200 naira (43 U.S. cents), 500 naira ($1.08) and 1,000 naira ($2.16) will remain legal tender until Dec. 31.

Ghana’s embattled cedi has rebounded 5% against the dollar in March as the government’s decision to suspend external debt payments eased demand for greenbacks in the local foreign exchange market, Bloomberg News reported. The west African nation unilaterally stopped payments on eurobonds and other external debt in December, pending an agreement with creditors that is needed to unlock an International Monetary Fund bailout. Traders said the impact is beginning to filter through to the currency, after it lost ground in the first two months of the year.

Swiss financial regulator FINMA on Monday said it was seeking to identify any potential contagion risks for the country's banks and insurers following the collapses of Silicon Valley Bank and Signature Bank, Reuters reported. Shares in Swiss banks slumped along with others in the sector globally after moves by U.S. authorities to guarantee deposits of the two lenders failed to reassure investors.

Silicon Valley Bank’s British subsidiary will be acquired by the banking giant HSBC, the Bank of England announced on Monday as it emphasized the stability of the nation’s banking system, the New York Times reported. “This action has been taken to stabilize SVBUK, ensuring the continuity of banking services, minimizing disruption to the U.K. technology sector and supporting confidence in the financial system,” the central bank said in a statement, referring to the American bank’s British subsidiary. “The wider U.K.

British government bonds on Monday were on track for their biggest one-day price gain since the day the Bank of England launched quantitative easing in March 2009, excluding wild market moves last year during the premiership of Liz Truss, Reuters reported. Part of a huge rally in global government bond markets following the collapse of U.S. lender Silicon Valley Bank, the 10-year gilt yield was down 33 basis points on the day as of 1413 GMT.

Italy's Economy Minister Giancarlo Giorgetti is closely watching market developments following the collapse of the Silicon Valley Bank (SVB), the ministry said on Monday, adding that the European Union should act quickly to shore up banks if needed, Reuters reported. "We appreciate the timeliness with which the U.S. authorities intervened and trust that, if necessary, European authorities will intervene with the same timeliness, assessing the implications for the conduct of monetary policy and financial stability," the economy ministry said in a statement.