Top Headlines

Russia to Burn More of its Currency Reserves, Barclays PredictsForbes
Russia is unlikely to raise interest rates any time soon, so to control inflation it might have to dip into its foreign currency reserves, according to Barclays Capital.
Russia Takes More Action to Prop Up

Lithuania Join Baltic Neighbours in Euro ClubBBC News
The new year means a new currency for Lithuania – it is joining the euro, following its Baltic neighbours Estonia and Latvia into the currency bloc.
Lithuania Adopts Euro as Russian Worries Rattle BalticsBloomberg
The Euro Currency Prepares to say Adieus to One Country While Welcoming in AnotherSeeking Alpha

Brazil’s Real Drops as Central Bank Halves Intervention ProgramBloomberg
Brazil’s real declined the most among major Latin American tenders after the central bank cut in half daily swap offerings supporting the currency.

BSE Hits Record High Currency Derivatives TurnoverThe Economic Times
Currency derivatives turnover on leading stock exchange BSE today hit record high of Rs 11,634.42 crore, surpassing rival bourse NSE’s turnover for the session.

China May Allow Foreigners to Invest in FuturesWall Street Journal (tiered subscription)
China has proposed allowing foreign investors and brokerages to trade some futures contracts, granting the latter access to a vast, potentially lucrative but notoriously volatile market.

Mt. Gox Losses Likely 99% FraudThe Japan News
About 99 percent of the bitcoins that disappeared from a virtual currency transaction system operated by Mt. Gox may have vanished due to fraudulent transactions, not from cyber-attacks as the company initially claimed.
Mt. Gox Bitcoin Theft Was An Insider, Not Hackers, Say PoliceNews BTC
Japanese Police: Mt. Gox Fraud Likely an Inside JobInside Bitcoins

Brascuba Ready for ‘Imminent’ Cuba Currency UnificationBloomberg
Cuba’s dual-peso system, in place for 20 years, will soon be no more and cigar maker Brascuba is ready for the currency’s unification.
Reforming Cuba: Troublesome dual currency is No. 1 on government’s to-do listThe Bellingham Herald

Regulatory News

Peru central bank tightens rules for derivatives, dollar depositsReuters

Peru’s central bank unveiled tighter rules for currency derivatives and created new reserve requirements for deposits in foreign currencies on Wednesday, part of a bid to curb lending in dollars and slow the greenback’s gains against the sol.

Financial Regulators and Congress Remain InconsistentMoneynews

Despite record fines and legal settlements during the past year, totalling $56 billion, bank regulators and Congress are dismantling the very progress that had begun.

China Eases Rules for Overseas Listed Firms to Send FX HomeReuters

China will no longer require local firms which go public abroad to get approval to remit foreign exchange raised in listings back home, seen as a small step toward relaxing capital flows.

Company News

Average FX Trading Volumes at KCG Hotspot Decline 15.5% in December, Total Down 6.9%Forex Magnates

Hotspot, KCG’s FX ECN, had a third consecutive month of trading volume declines in December 2014. According to daily trading volume reports by KCG Hotspot, the average daily volume (ADV) traded on the marketplace reached only $27.7 billion, with the total figure for the month amounting to about $610 billion.

Market Savvy  

Euro Forecasters See More Pain After Worst Year Since 2005 Bloomberg

Midway through European Central Bank President Mario Draghi’s May press conference in Brussels, the euro rose to its strongest level during his tenure. Then he said the ECB was ready to introduce more stimulus measure, sending it into a slide that strategists say will extend into 2015.

Euro at 4 1/2-Year Low on Draghi QE SignalFinancial Times (tiered subscription)

The new year is bringing a well-worn trading pattern back to the currency market. The euro has reached its lowest level since June 2010, with the deeper weakness coming for the shared currency after comments from Mario Draghi were being seen as a signal of potential quantitative easing in the eurozone.

Industry Events