ACI Macedonia

 

 

• Introduction to ALM – ALM responsibilities in a bank, relations to Treasury, market risk and risk controlling, balance sheet optimization and influence of the COVID-19
• Internal prices for liquidity risk FTP(LQ), rules and using a in a bank, contingency FTPs, other FTP adjustments and strategy by various influence factors (such as customers’ behavior, sustainability)
• Identifying the liquidity risk by using FTP(LQ), profitability calculation from liquidity gaps, liquidity buffer
• Managing liquidity risk in a bank:

• Methods for mapping the cash-flow of the balance sheet items – replication portfolio for administered products and items without defined maturity
• Liquidity gaps and measurement of liquidity risk, minimum liquidity definition
• Liquidity curve and liquidity costs/premiums
• Cost of funding evaluation by excess of liquidity
• Liquidity stress scenarios, customers’ behavior influence and idiosyncratic risks
• Regulatory ratios of liquidity risk (LCR, NSFR)

• Financial markets products for managing of liquidity risk: money market products (Depo, CD, CP, T-bills, Repo. FX swap), fixed income products (bonds)
• ILAAP (Internal liquidity adequacy assessment process)
• Examples and case studies from practice

 

2020 was a year of surprises. While we move forward in 2021, the world is simultaneously facing two unseen crisis. First, the need to renew the finances in the public sector. Second, the need to deal with the climate changes, speeding up the transfer to renewable energy sources and transition of the world economy to a more sustainable path.

Merging in terms of strengthening the positions of the domestic market would make sense for many banks given that they are still segmented, whereby a number of small banks do not have economy of scale in order to compete efficiently, and keep, at the same time, the profitability and make the necessary investments in technology.

The European Central Bank remained unaltered the monetary policy at the first meeting in year 2021, after expanding its Pandemic Emergency Purchase Program (PEPP) for another 500 billion Euros and continued it until March 2022. However, the investors see that the central bank is reiterating its effort to adjust the policy as and when needed, leaving the door open for further stimuli, under circumstances of increased infections and new blockages. Given that many analysts project higher instability in the coming months, traders have to ensure to keep up with all the current issues, and thus, the positive impacts from the stimulating package are remain to be seen in the coming period.

While ECB should be in state of rest in the coming months, it shall probably be focused on its recently announced review on strategy for stimulating the openness, strengths and durability of the EU economic and financial system in the years to come. This strategy is intended to provide a leading role to Europe in the global economic management and enable good functioning of the international financial markets and multilateral system based on rules.

Continue reading “Year 2021- a year of uncertainty and challenge for the foreign market- magazine Economy and Business”

 

Foreign market is a place where the money supply and demand meet denominated in one currency, which is exchanged for money denominated in other currency. Foreign market is not institutionalized. It is a network of all banks, dealers, tradesman, and market makers in the world, who make this market operable almost every day, day and night. The purpose of each participant is the same. Realization of profit.

But, how to become a successful dealer?

Even the best sportsmen miss a penal in their most important matches in their carrier. It is not because these sportsmen do not have the necessary values and abilities, but because their emotional situation has succumbed, because they experience stronger stress and failure fear. Feeling of stress and fear has high impact on the dealers in reaching decisions in foreign trading. Ability to manage the emotional situation, suppressing the fear in him/her, may largely improve the quality of decision making.

Psychology in foreign currency trading is very important. Very often the psychology and not the lack of education or skills is the reason for making errors. Trading psychology provides following the assigned goals, irrespective of the current losses.

Most of the people begin to know the foreign market with technical analysis of the charts, with historic trends of currency pairs. There after there is fundamental analysis, why some currency pairs behaved as they had in the past and how would they behave in the future. The challenge is to find the right combination of tools, which shall provide the dealer with realization of profit.

Continue reading “Psychology in foreign currency trading- magazine Economy and Business”

 

During the first few months of 2021, just as in the past year, the entire world and the domestic public witnessed the extreme price growth of the largest crypto currencies relative to their market capitalization. The oldest and most popular crypto currency (Bitcoin) reached growth of 600% in year 2020, and only at the beginning of this year its value was increased by another 80%. In addition, the value of the other most traded crypto currencies, as are Ethereum, Litecoin and XRP, has grown by 1.010%, 350% and 230%, respectively.

As a result of this vertiginous price growth, market capitalization of crypto currencies reached amount of 1,6 trillion USD, whereby the Bitcoin contributes with 68%. Such figures have not left unmoved even the strongest critics of Crypto Market.

Having in mind these developments, at the beginning of the text we shall try to explain the features of the crypto currencies and purpose for their creation. In addition, further in the text, we shall analyze the potential and future perspectives of this market segment, aiming to get clearer picture of the direction it might move to.

A crypto currency may be defined as a form of digital ownership used as an asset for exchange of goods and services. The method of providing security of transactions is enabled by use of technology named blockchain. At the same time, a control is carried out over the creation of additional monetary units through this technology, as well as confirmation for the currency transfer. Most famous and most valued currency, measured by the market capitalization, is the “Bitcoin”.

Continue reading “Features and potential of crypto currencies – with special review on Bitcoin- magazine Economy and Business”