liquidity Tag

Posted On April 10, 2018By syafiq nubexIn Articles


The phrase ‘market liquidity’ would often pop up when discussing the fluctuating prices of tradable commodities, especially when we talk about gold. But what exactly is ‘market liquidity’, and how is it determined? GOLD MARKET LIQUIDITY – WHAT IS MARKET LIQUIDITY? To put it simply, it refers to how fast and easy it is for an asset to be bought and sold at stable prices. A good example of a liquid market would be when the price a buyer would offer for a commodity (or the bid price) is fairlyRead More
How long can it last? That’s what watchers of Hong Kong’s markets are asking as the gap between local and U.S. interbank rates widens to the most since 2009. The city’s currency peg to the greenback effectively ties its monetary policy to that of the U.S., making the growing differential all the more curious. Now things may be changing, with forward points and interest-rate swaps in Hong Kong’s dollar starting to bottom out. The reasoning is simple: with the currency having fallen to the middle of its permitted band andRead More
While investors pile into Tech Stocks based on endless promotion from the financial media, the US economy is rolling over. Last week the NY Fed downgraded its economic forecast for 2Q17 to just 1.9%. Even worse, it is now forecasting 2017 total growth to be a measly 1.5%. Yes, 1.5%. There is a clear trend to this chart… and it’s NOT up. Source: NY Fed Wait, it gets worse. The Citi Surprise Index has collapsed to levels not seen since 2011. Source: Yardeni Research Why does this level matter? The lastRead More
China’s deleveraging dilemma — how to squeeze excess liquidity out of the financial system without spurring a full-blown cash crunch — is facing its toughest test. June is traditionally a tight time for banks because of regulatory checks, and this year, lenders are grappling with an official campaign to reduce the level of borrowing as well. Wholesale funding costs and money-market rates are close to the most expensive in two years, and the 30-day Shanghai Interbank Offered Rate has jumped 44 basis points this month, the worst start to a JuneRead More
THE good news is China is taking a safer route in its approach to financial regulation. That, unfortunately, is also the bad news, as a crackdown on loose lending, especially after a splurge of credit into unproductive sectors, means China’s growth is and will be declining. That is significant not only because China is the world’s buyer of last resort of raw materials, but also because the slowing of any credit binge brings with it the possibility, even in tightly controlled China, of missteps and blow-ups. China’s factory output slowedRead More
The outlook for gold is unclear due to the current prices and uncertainties in the global economy. But it is expected to change in the long term because of the recent introduction of the shariah gold standard. Industry players say the gold standard, launched by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and World Gold Council last December, will drive up gold prices in the long run. The gold standard, officially known as Shari’ah Standard No 57 and its Trading Controls, sets out specific rules for usingRead More
By: Farhah Aziz Zimbabwe; a landlocked country known for Victoria Falls, Robert Mugabe and indeed the hyperinflation crisis. Who hasn’t heard of the infamous phase of hyperinflation crisis plaguing the country in the late ‘90s stretching into early 2000s? The annual inflation rate was indeed extremely staggering with a record high, 500 billion per cent as of 2009, ranked the highest in the world. So, what has caused this economic chaos to happen in the first place and where is this southern African economy heading to in the future? “Indigenization”Read More