Dr. Platon Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The SNB’s decision y-day to discontinue the EUR/CHF minimum exchange rate of 1.20, first instituted in early September 2011, and to move the reference interest rate further into negative territory to -0.75% from -0.25% previously, caught markets by surprise. The CHF rose sharply across the board while perceived safe-havens, including US Treasuries, firmed.
GREECE: According to the latest BoG data, Greece’s travel balance recorded a surplus of €10.47bn in the period January- September 2014, marking an 11.2% increase on an annual basis. This positive development was mainly attributed to a €1.2bn (10.9%YoY) rise in travel receipts to €12.0bn.
SOUTH EASTERN EUROPE
SERBIA: As was widely expected the Central Bank (NBS) kept its key policy rate unchanged at 8.00% at its MPC meeting on Thursday, but announced its decision to amend the Banks’ Required Reserves with the National Bank of Serbia.
ROMANIA: The EUR/RON closed marginally higher around levels of 4.5000 on Thursday, with the pair recoiling from an intraday high of 4.5050 hit after the SNB’s announcement.
BULGARIA: The FinMin announced on Thursday it “has ordered” the repayment of a 13-year $1.1bn USD denominated bond issued in April 2002.
CESEE MARKETS: Emerging stock markets broadly fell in European trade today, weighed down by SBN’s move on Thursday to remove the franc’s 3-year-old cap against the euro. In regional FX, CESEE currencies were mixed.
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Dailyoverview January 16, 2015
