Finance

Japan keeps mum on forex intervention as yen jumps

Published

4 months ago

July 12, 2024

Japan keeps mum on forex intervention as yen jumps

Japan on Friday left markets guessing on whether it had intervened to shore up the yen against the U.S. dollar, as senior officials neither confirmed nor denied another foray to reduce excessive volatility.

The officials remained silent after the dollar tumbled more than 4 yen from 161 yen over a short span of time in New York overnight, soon after data showed inflation in the United States had continued to slow, strengthening the market view that the Federal Reserve will cut interest rates in September.

Finance Minister Shunichi Suzuki, in a similar vein, did not confirm a media report that the Bank of Japan had conducted a “rate check” on the euro-yen pair, a practice seen by markets as a harbinger of actual intervention. In a rate check, the Japanese central bank contacts market participants to inquire about foreign exchange rates.

Japanese Finance Minister Shunichi Suzuki holds a press conference at the ministry in Tokyo on July 12, 2024. He declined to comment on whether Japan had intervened in the currency market overnight to shore up the yen against the U.S. dollar. (Kyodo) ==Kyodo

“I do not comment on whether we have intervened or not,” Suzuki told a press conference, a remark echoed by Japan’s top currency diplomat Masato Kanda and government spokesman Yoshimasa Hayashi.

Suzuki said foreign exchange levels should be determined by market forces but rapid fluctuations are undesirable. “In particular, we are concerned about one-sided movements,” he added.

The yen’s precipitous fall has raised concern about the negative impact on the Japanese economy, particularly the inflation of import costs for everything from energy to raw materials at a time when households are struggling with a cost-of-living crisis.

The Japanese currency has fallen to an over 37-year low against the dollar near 162, while also hitting its lowest level against the euro since the 1999 launch of the single European currency.

Market analysts say the yen’s rapid appreciation came as market players flocked to the currency as the interest rate differential narrowed following the release of the U.S. inflation data.

Others say Japanese authorities apparently joined the flow and pushed the yen higher, sparking intense yen-buying in a chain reaction as markets players were caught off guard.

“The government will closely monitor currency market developments and take all necessary steps,” Chief Cabinet Secretary

Hayashi told a separate press conference.

Japanese authorities had kept markets vigilant with a series of verbal warnings in recent weeks that they could act to rectify volatile currency movements that do not reflect fundamentals. But they largely let the yen weaken slowly toward 162 to the dollar.

The major factor behind the feeble yen is the wide interest rate differential between Japan on one hand and the United States and Europe on the other.

Kanda said only a handful of officials would have direct knowledge of a market intervention if the government stepped in.

“That being the case, it’s inconceivable that government officials would have commented on it,” Kanda, vice finance minister for international affairs, said about some media reports citing government sources as confirming a foray on Thursday.

The Finance Ministry is scheduled to release market intervention data at the end of July.

When Japan spent 9.79 trillion yen ($61 billion) between April and May to slow the yen’s rapid decline, the foray came after the yen fell to 160.24 on April 29.

At the time, Japanese authorities adopted a strategy known as a “stealth intervention,” meant to amplify market jitters by keeping mum about their action.

Related coverage:

Dollar firms to near 160 yen on receding U.S. rate cut expectations

Japan warns of appropriate action any time against rapid yen moves

U.S. puts Japan back on currency manipulator watch list after 1 year

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Finance

St. Augustine's says it will eliminate 50% university employees ahead of accreditation meeting

Published

1 hour ago

November 23, 2024

Press Room

St. Augustine's says it will eliminate 50% university employees ahead of accreditation meeting

RALEIGH, N.C. (WTVD) — Saint Augustine’s University (SAU) announced Saturday it will eliminate several positions, including non-faculty and vacant, this month ahead of its significant accreditation meeting.

Last December, the Southern Association of Colleges and Schools Commissioner on Colleges (SACSCOC) voted to remove SAU from membership due to its financial status. The university’s appeal was denied in February and then in July, the SACSCOC arbitration committee reversed the decision and reinstated SAU’s accreditation.

The SACSCOC board will vote on the next step for the university in December.

In a news release, SAU said to ensure compliance with the Southern Association of Colleges and Schools Commissioner on Colleges and keep its accreditation, the school has reduced its expenses by approximately $17 million in fiscal year 2024 compared to 2023. Reductions, totaling 50% of university employees, include 67 staff positions (41% reduction); 37 full-time faculty positions (67% reduction); 32 adjunct faculty positions (57% reduction); and stopping several under-enrolled programs.

SEE ALSO | St. Augustine’s alumni hosts celebration amid canceled on-campus homecoming

The university also said it will be actively settling outstanding balances with vendors and adjusting various contrasts.

SAU also reported completing four financial audits for fiscal years 2021, 2022, 2023, and 2024, and restoring employee payroll and health insurance benefits.

The HBCU university — remaining millions of dollars in debt — secured a $7 million loan from Gothiuc Ventures with a high-interest rate. To get the loan, St. Aug’s put up much of the university’s main campus and off-campus properties as collateral.

Gothic Ventures tells ABC11 that the interest rate offered was determined by the financial difficulties faced by the university, which included a recent audit, historical revenue losses, and outstanding debt.

SEE ALSO | Saint Augustine’s University’s high-rate $7 million loan puts HBCU in jeopardy, finance experts say

Many, including SAU alumni and finance experts, are concerned about this loan.

“We are concerned about the partnership between Gothic Ventures and Saint Augustine University because if for any reason Saint Augustine is unable to repay Gothic ventures, the land will be lost and the university as we know it will cease to be,” alum Bishop Clarence Laney said.

The lawsuit against the board of trustees by the SaveSAU Coalition was also recently dismissed.

EDITOR’S NOTE: The featured video is from a previous report.

Finance

Assess your financial risk before new policies affect the economy

Published

9 hours ago

November 23, 2024

Press Room

Assess your financial risk before new policies affect the economy

I’ve been thinking about financial risk lately.

Should I change my asset allocation in my retirement portfolio, considering Donald Trump’s successful bid for the White House? Stock market valuations have risen smartly in recent years, which real income growth, productivity improvements, technological innovation, low unemployment rates and healthy corporate profits have largely powered. Yet with the election of Trump, voters have approved a massive economic experiment.

The Trump administration comes into power with many policy goals, but four economic initiatives stand out: Enacting significant tax cuts; imposing broad-based and significant tariffs; sweeping raids, mass deportations and tighter immigration controls; and slashing federal government regulations. The extent that these plans turn into reality and how each policy will interact with the others is uncertain. The risks are obvious. The outcome isn’t.

Enter risk management, a critical concept in finance. Professionals often associate risk with volatility. The tight link makes sense, since owning assets with high volatility hikes the odds of losses if there is a pressing need to sell the asset to raise money.

However, for the typical individual and household, risk means the odds money decisions made today don’t pan out. Managing risk means lowering the negative financial impact on your desired standard of living from decisions gone wrong and when circumstances take an untoward turn.

“Anything that makes reaching or maintaining that more likely reduces your risk, and anything that makes this less likely increases your risk,” writes Bob French, the investment expert at Retirement Researcher. “Everything else is just details.”

The key risk management concept is a margin of safety, a bedrock personal finance idea broader than investment portfolios. It can include having an emergency savings fund, owning life insurance to protect your family and investing in your network of friends and colleagues to hedge against the risk of losing your job. The right mix depends on the particulars of your situation.

In my case, after studying my portfolio, running household money numbers and reviewing lifestyle goals, I’m comfortable with the asset allocation in my retirement portfolio. There is too much noise in the markets for comfort, and market timing is always tricky. The prudent approach with my individual situation is to stay the course.

Finance

Shannon Bernacchia Appointed Interim Finance Director for Regional Schools – Amherst Indy

Published

18 hours ago

November 23, 2024

Press Room

At a Zoom meeting on Friday, November 22, School Superintendent Dr. E. Xiomara Herman recommended to the Regional School Committee and Union 26 School Committee that Shannon Bernacchia be appointed interim Finance Director for the schools, replacing Doug Slaughter who had served in that position since 2019. Bernacchia has served as Assistant Finance Director under Slaughter. Her appointment was approved unanimously by both school committees.

In recommending Bernacchia for the interim director position, Herman cited her “impressive career, dedication, and accomplishments during this transitional period [to a new administration],” adding, “Since joining our district, she has demonstrated exceptional proficiency in managing complex financial operations, including preparing budgets, overseeing audits, and providing detailed financial reporting to the school committee.”

Bernacchia holds a Bachelors Degree in Business Management from Bay Path University and professional training in school fund accounting. She currently holds an emergency School Business Administrator license valid through 2025 and has completed all requirements for her initial license, except for the 300 hours of mentorship. She anticipates completing that requirement in January, 2025. Former Amherst Regional Public Schools and Town of Amherst Finance Director Sean Mangano is serving as her mentor.

Herman expressed confidence in Bernacchia’s ability to head the district’s financial operations.

In acknowledging her appointment, Bernacchia thanked the school committee members and said that she was excited to work with superintendent who is woman.