Our Scans · (FS.5.05) Foreign Exchange · Weekly Summary

• [New] While Indonesia and the Philippines have raised interest rates in the face of inflationary and foreign exchange risks, India has kept them unchanged. ST
• [New] The addition of the world's fifth most-traded currency to its PvP service follows growing demand to limit foreign exchange settlement risk due to its rising role in global financial markets and cross-border transactions. FX Markets
• Central Bank Gold Reserves and China's Discrepancy The World Gold Council's annual survey of central banks revealed that 78% of respondents expect gold's proportion of global foreign exchange reserves to increase over the next five years (p. 12). WatchGold
• Opportunity: India's UPI and CBDC becoming regional payment standards could benefit from dollar alternatives in South Asia/ASEAN Risk: India holds approximately $680 billion in forex reserves, predominantly in US Treasuries. Ziro Market
• In conclusion, while India's forex reserves remain substantial, the ongoing West Asian conflict serves as a reminder of the vulnerability to external shocks. EduRev
• Even outside of CLS, there are new opportunities for PvP settlement popping up to cover non-CLS currencies such as the B3 Foreign Exchange Clearinghouse in Brazil, CHATS in Hong Kong, and Buna in the United Arab Emirates. FX Markets
• The combination of legal guarantees, tax relief, and hard currency protections addresses the trifecta of concerns - sovereign risk, fiscal unpredictability, and foreign exchange access - that have historically made Argentina a difficult jurisdiction for resource investment. Discovery Alert
• The US dollar has exhibited less consistent safe-haven characteristics through the different shocks over the last year, resulting in higher foreign exchange risk for euro area investors. European Central Bank
• The main provision in 2026-2027 relates to a £178 million potential foreign exchange rate movement on EU Programmes hedging on forward contracts. GOV.UK
• Russia plans to block foreign cryptocurrency exchange websites starting in summer 2026, aiming to redirect crypto activity to locally licensed platforms. Phemex News
• Activity in foreign exchange derivative markets in Asia has increased in recent years, along with greater incentives to hedge exchange rate risk. Reserve Bank of Australia
• The variation margin on foreign exchange derivatives has risen substantially with the spike in geopolitical risk after the outbreak of the war in the Middle East. European Central Bank

Last updated: 28 July 2026