Garanti BBVA International’s Post

How to improve European #competitiveness? The #Draghi report was only the latest of a number of papers that underlinded the need to get a European securitisation market up and running. Toghether with an expert initiative, we've tried to come up with concrete measures to strengthen the securitisation market. The report by the Association of German Banks (BdB) and True Sale International offers an in-depth analysis of the current barriers to the #securitisation market, as well as clear reform proposals at European and national level. The central focus of the report is to reduce unnecessary bureaucratic hurdles, lower capital requirements for low-risk securitisations and thus make the market more attractive for investors. Now, we need to use the momentum at the beginning of the new legislative term to reform the European securitisation market in a targeted manner and exploit its full potential! Nicole Quade Michaela Zattler Thomas Schlueter

Business News. CAC Extends Time for Full Application of Penalties for Failure to File Annual Returns by Companies to April 01 2024 Further to its earlier notice published on Thursday, 2"? November 2023 informing the General Public that it shall commence the full application of the penalties prescribed... https://lnkd.in/e2bn2BmR FG closes section of Third Mainland Bridge for repairs January 9 The Federal Ministry of Works has announced that urgent repairs will be carried out on the Iyana-Oworonsoki end of the Third Mainland Bridge. https://lnkd.in/ebTedby8 $110m fine: Publicise BATN’s offences, CAPPA urges FG The Corporate Accountability and Public Participation Africa (CAPPA) has urged the Federal Competition and Consumer Protection Commission (FCCPC) to publicise the... https://lnkd.in/edCZffge More traders replace USD with other currencies for oil transactions Amidst the ongoing Russia-Ukraine war, more countries have shifted from decades-long petrodollar, as over a fifth of global oil trade in 2023 were completed in currencies different from the U.S. dollar. https://lnkd.in/eZSFRqye Stakeholders Raise Concern over Bloated Appointments in Aviation Sector Although many industry stakeholders are upbeat about the future of the aviation industry under the watch of Festus Keyamo, as the Minister of Aviation and Airspace Development https://lnkd.in/eDPu9WCH Damilola Hassan Ola Belgore ACIArb Lydia Amobi-Offor Michael A. O. Thomas

IAS 21 outlines how to account for foreign currency transactions and operations in the FS, and also how it is to be translated into a presentation currency. See below a pictorial summary of the standard. Cheers to a fruitful week!

I had a meeting today to discuss some comments I put in a post about market dysfunction in New Zealand’s financial markets. At the end of the meeting I quipped that when I came to New Zealand (2005) my observation of the domestic bond markets was that I’d rather buy the debt of Venezuela than NewZealand- they had better liquidity and at least the CPI prints were more frequent. I also ( jokingly) said my view hadn’t changed. To be honest I doubt I’d buy Venezuelan debt - not sure DCBs exist anymore and things aren’t too good in Venezuela these days, but then the attached story dropped about an NZ inflation linked bond issue being manipulated in 2022. Apparently the conduct regulator ( FMA) was informed of this allegation in 2023 , but stated they allocate resources on a ‘needs basis ‘ . Seriously?! …The integrity of the domestic government bond market ( especially auctions) is paramount… the RBNZ lost a decent clip of money in their bond market support function in 2020 ( incredible I know- and nothing to do with LSAP) to ensure the bond market didn’t create financial stability issues . The FMA need to investigate and say ‘ nothing to see’, or start prosecution proceedings … but don’t say things are on a ‘needs basis ‘… and yes minister of finance it’s also your job to instruct the FMA to get on with it ( and that includes the NZDMO fronting up ) Nicola Willis MP PS; when it comes to financial eco system integrity , there are few things more important than the Central Bank - I’ll have more to say about that at the end of the month , you’ll find it interesting … I’ll be in touch PPS: those bonds which were bought for the bond market support ( and for financial stability), some of which are still on the RBNZ balance sheet are not covered by the indemnity for monetary policy reasons the question is have they been lumped in with LSAP and the treasury have been making payments on them. … that really would be some shocking misreporting if they are. The indemnities granted to the RBNZ last year are a mess and you really should rip some of them up as they expose the crown to unacceptable and unnecessary risk. PPPS: can you please change the supervisor of the FMA to the Treasury, as per the UK & Australia. #newzealand #financialmarkets

Happy New Year everyone🌼, As we approach the final days of the Ethiopian year 2016, I'd like to highlight some of the key developments we witnessed in the finance industry and the capital markets in the year we are completing. One of the major updates in the year was the issuance of a variety of directives by the Ethiopian Capital Market Authority (ECMA) to govern and facilitate the new upcoming market, one of the major directives issued in the year was “Capital Market Service Providers Licensing and Supervision Directive No. 980/2024” a directive that set a framework for licensing, regulating, and overseeing organizations that serve as service providers in the capital market. The other directive that was published was “Directive on Licensing, Operations and Supervision of Securities Exchanges, Derivatives Exchanges, and Over-The-Counter Market No. 1009/2024” which focuses on licensing and regulating securities exchanges and the Over-The-Counter market, ensuring their integrity and trustworthiness in the eyes of the public. Based on this directive ECMA also granted the first securities exchange license for the Ethiopian Securities Exchange. In addition to these directives, the authority also launched the regulatory sandbox that will foster financial innovation and give an opportunity for innovators to test their innovation in a controlled environment and assess its performance before making it available to the public. Another major highlight of the year was the successful capital raise by the Ethiopian securities exchange that have been over subscribed and raised around 1.51 billion ETB from domestic and international investors including a variety of banks and insurance companies. Additionally, the release of the draft ESX Rulebook for public consultation was the other highlight, the rulebook governs the overall interactions between investors, brokers, dealers, and issuers in the exchange. In addition to this, the exchange was also participating in roadshows and organizing webinars to fill the knowledge gap in the country about the market and its services. Another key development was the National Bank of Ethiopia (NBE) reform in the foreign exchange regime under the HGER 2.0. this reform shifted the determination of foreign exchange rates by the market and also introduced changes to how foreign currency is retained and handled by banks, institutions, and individuals. These adjustments aim to make the country competent in attracting further additional Foreign Direct Investment (FDI), create a suitable environment for foreign banks, retail and wholesale companies, and other corporations to enter the Ethiopian market, and also pave the way for the capital market to attract foreign institutional investors to its listed equity and debt securities. Continues on the first comment...... #NewYear #capitalmarket #ECMA #ESX #NBE

"Check out the latest blog post discussing the movements of the dollar, stocks, and bonds in the first month of Milei's presidency. From investor euphoria to cautiousness, it's been an interesting ride. Explore the challenges with the DNU and the Omnibus law. Plus, the BCRA's negative rate is stirring up parallel exchange rates. Read more here: https://ift.tt/BU04x15"

On April 11, the US Treasury Department proposed to expand the enforcement and transaction review authorities of the Committee on Foreign Investment in the United States (CFIUS). The Treasury Department proposed rules that would: (i) substantially increase the financial penalty amounts that CFIUS may impose for violations of its rules, procedures or mitigation agreement terms; (ii) expand CFIUS’ subpoena authority and ability to seek information from non-transaction parties; and (iii) establish tight timelines for transaction parties to respond to proposed mitigation terms. Read more from John Beahn, Dara Panahy, Bijan Ganji, Dana Zelman, Lafayette G., Lauren Trushin and Clayton Melton in the latest Milbank Insight:

“The People’s Bank of China (PBOC) said a meeting in Shanghai produced an agreement with the U.S. Treasury to appoint contact people to deal with any future ‘financial stress events.’ The two sides also ‘exchanged lists of financial stability contacts’ during the fifth meeting of the Financial Working Group set up after U.S. Treasury Secretary Janet Yellen’s visit to China last year. ‘The People’s Bank of China and the U.S. Treasury Department signed an exchange of notes on strengthening China-U.S. financial stability cooperation.’” “This according to a PBOC readout about the meetings on Aug. 15-16. It said the countries also ‘exchanged lists of financial stability contacts.’ The talks represented the first sit-down between senior U.S. and Chinese economic officials since Beijing’s leadership laid out its longer-term priorities last month at a twice-a-decade conclave. The Shanghai meeting planned to focus on topics including macroeconomic and financial stability, governance of the International Monetary Fund and capital markets issues.” “This according to a Treasury spokesperson declaration before the meeting. The agreements will ‘enable the financial management departments of both sides to maintain timely and smooth communication channels and reduce uncertainty when financial stress events and financial institutions’ operational risks occur,’ the readout said. For the first time, financial institutions participated in the meetings. Discussions covered sustainable finance and areas of possible cooperation.”

IAS 21-The Effects of Changes in Foreign Exchange Rates An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In addition, an entity may present its financial statements in a foreign currency. The objective of this Standard is to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency. The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements.

IAS 21 The Effects of changes in Foreign exchange rates IAS 21 guides on how to account for foreign currency transactions, and operations in the financial statements. It also outlines how to translate foreign transactions into a presentation currency. An entity choses a functional currency for each of its transactions based on the environment for its operations. Transactions that do not use the functional currency are converted using the spot exchange rate between the functional currency and the foreign currency.