Tag Archives: rba

Australia doomed: debt ceiling raised $200b, central bank given $8.8b

Federal Treasurer Joe Hockey

The Federal Government has given the Reserve Bank of Australia a $8.8 billion one-off grant to help it manage future economic crises. The money will be added to a fund used to offset the central bank’s exposure to risky financial assets. Federal Treasurer Joe Hockey says Australia’s economy continues to grow, but financial instability in the United States presents serious ... Read More »

Reserve Bank of Australia quietly increases banks’ bailout buffer

Reserve Bank of Australia

In a globally unique policy, the Reserve Bank of Australia will supply banks with a permanent bailout facility worth up to $380 billion by 2015. The policy has been designed by the RBA to help banks satisfy stringent new liquidity tests which simulate “acute stress scenarios” that deny banks funding for 30 days under the post-GFC rules, Basel III. Local ... Read More »

Australia will be a casualty of the currency wars

Australian money currency

The world’s most powerful nations are sitting on zero interest rates and printing money to get their currencies down, and there’s very little Australia can do about it, writes Alan Kohler. The currency war will be on in earnest in 2013 as the United States, Europe, Japan and China all step up efforts to get their exchange rates down. This ... Read More »

Australia has no gold

Reserve Bank of Australia

After a campaign throughout 2012 to seek clarity in regards to the location of Australia’s Gold Reserves the Reserve Bank of Australia (RBA) has confirmed today in an email to me that 99.9% of their Gold Reserves are held in the gold vault of the Bank of England. Please read below for the text of the RBA’s email response to ... Read More »

Australian banks at risk

big four banks Australia

Despite yesterday’s blowout $6 billion or so profit from ANZ, it turns out all is not entirely well in Australia’s financial services industry. For the last five years, the pattern in the markets has been the same. A crisis starts at the margin, with a peripheral player, and then moves its way up the food chain. That’s what happened when ... Read More »