European Central Bank audit identifies capital shortfall in worst-case scenario
Greece’s four main banks need to find another €14bn (£10bn) of reserves to ensure they could withstand an economic downturn, the European Central Bank said on Saturday.
The four banks – Alpha Bank, Eurobank, NBG and Piraeus Bank – have until 6 November to say how they intend to make up that shortfall, the ECB said. Continue reading
TOKYO — By forcing Russia to conduct more business in the yuan and other Asian currencies, the U.S. may be speeding up the end of the petrodollar and giving China more prominence on the world stage.
As the West tightens financial sanctions against Russia over the conflict in Ukraine, Russian businesses are reducing their exposure to the dollar to minimize the damage from still tougher punishments. Many of these businesses have turned to the Hong Kong dollar as an alternative to the greenback.
Hong Kong harbor
The Hong Kong dollar is an ideal safe haven for Russian companies looking to park their cash. Because the currency is pegged to the greenback, the foreign-exchange risk of holding Hong Kong dollars is no different from owning the U.S. currency. But because Hong Kong is part of China, funds held in the Hong Kong dollar are unlikely to be affected, even if the U.S. and Europe introduce tougher sanctions against Russia, such as asset freeze.