The Bank of China's suspension of business further complicates the ability of the Foreign Trade Bank, North Korea's main foreign exchange bank, to access a key financial market.
The US imposed sanctions on North Korea's main foreign exchange bank after the recent nuclear tests and had urged other countries, including China, to cut ties with the bank.
In response to overseas media reports that the Bank of China has closed the account of North Korea's main foreign exchange bank, Shi Yinhong, an international affairs expert at Beijing's Renmin University tells Hong Kong's South China Morning Post that Beijing is losing patience with Pyongyang.
Bank of China, the country's largest foreign-exchange bank, said that its net profit climbed 12% on-year in 2012, higher than analyst expectations. 2012 net profit at Agricultural Bank of China, China's largest rural lender by assets, came out a touch lower than expectations.
The U.S. Treasury Department announced it had put sanctions on North Korea's primary foreign-exchange bank in response to Pyongyang's nuclear test last month.
The index is proportionally weighted based on foreign-exchange trading volume data from the Bank for International Settlements' triennial central-bank survey on global foreign-exchange market activity.
Traditionally China's foreign-exchange and trade bank, it still has the largest presence abroad.
Countries with plenty of reserves, such as China or India, could allow mutual funds (domestic or foreign) to issue shares in domestic currency with which they could buy foreign exchange from the central bank.
Bank of China is the country's biggest bank for foreign exchange transactions, so the account closure could hurt the North Korean institution.
Typically, governments hold cash reserves in their central bank as foreign exchange reserves for the purpose of stabilizing currency and management of liquidity.
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On the other hand, some of Bank Austria's returns have come from such volatile areas as investments in hedge funds and trading cash, foreign exchange and derivatives for the bank's own account.
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The bank essentially performs foreign exchange transactions, such as yen vs. euro, or dollar vs.
Officials at China's securities regulator, central bank and foreign-exchange regulator couldn't be reached for comment.
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Ideally, you could trade your fiat paper currencies for these gold-linked currencies at any bank that offers foreign exchange services.
Though India's banks face bad debts, its cloistered financial system, high foreign-exchange reserves and capable central bank mean it is not about to keel over.
The standard line from the academic literature is that central bank intervention in foreign exchange works only when it's in line with the fundamentals - and even then, only when lots of central banks work together.
In 2009 Deutsche Bank was the largest foreign exchange dealer in the world, with a market share of 21%.
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In much of East Africa you can now bank, even exchange foreign currencies and make international payments on a feature phone.
Then last month the chief of the State Administration of Foreign Exchange, a division of the central bank, removed any ambiguity when he stated that China would make the renminbi convertible on the capital account in five years.
It seems the Ministry of Finance has ceded foreign exchange rate policy back to the Central Bank where it belongs. the bank has, for now, won the policy argument that further weakening of the real will be inflationary and lead to a stronger real exchange rate, says Tony Volpon, managing director at Nomura Securities in New York.
They can also use it to put controls around activities such as bank account management and foreign-exchange trades.
After intense negotiating, the Lincoln provision was watered down to allow interest rate and foreign exchange swaps dealing to remain inside a commercial bank.
But such requirements may do little more than offset the expansionary effects of the central bank's purchases of foreign exchange, made necessary by its stubborn refusal to allow the yuan to strengthen faster.
The three main regulators' committees at the bank on banking supervision, payments and settlements, and foreign-exchange have done important work establishing the minimum capital requirements for banks, drafting international principles for bank supervisors and writing a voluntary code of disclosure for banks' derivatives exposures.
On March 17th Guo Shuqing, China's leading foreign-exchange official, replaced Mr Zhang as the bank's party chief (a job that usually goes with the chairmanship).
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The U.S. dollar index traded sharply higher Thursday and got a somewhat surprising boost when the Bank of Japan intervened in the foreign exchange market overnight to pressure the yen.
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The U.S. dollar index is trading sharply higher Thursday morning and got a somewhat surprising boost when the Bank of Japan intervened in the foreign exchange market to pressure the yen.
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Guo Shuqing, the head of the China Securities Regulatory Commission, said that the regulator had already reached an agreement with the Chinese central bank and the State Administration of Foreign Exchange to raise the QFII limit.
In its history, CLS Bank has taken the risk out of foreign exchange transactions among its participants.
To repay the fund, the central bank has kept the economy starved of foreign exchange and printed dollops of money stoking inflation.
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