The Peruvian market is anxious before the second election round next Sunday. The main local index (IGBVL) rose 2.57%, after falling for three consecutive days, as confidence grew that Alan García will defeat Humala for the presidency. While there is little difference between the two on macroeconomic policy, with both candidates aiming for a fiscal deficit smaller than 1% of GNP, and maintaining inflation targets and a floating exchange rate, Humala is feared by investors because of his position on foreign investment. Peruvian economist Carlos Adriansen said: “Humala is openly hostile to the investment and the property, wants to review all the agreements and contracts”.
Poland's zloty moved down fractionally as investors remodel their portfolios in expectation of another interest rate hike in the US, according to Kredyt Bank foreign exchange analyst Robert Kesicki. The dollar/zloty exchange rate rose from 3.0677 to 3.0663 yesterday, and the zloty is expected to lose further ground.
The People's Bank of China has announced a new primary dealer system for currency trade. The announcement is part of the central bank's drive to reform China's foreign exchange market. The new rules formalise the practice of several local banks handling the central bank’s transactions. The People’s Bank will allow designated lenders to trade directly with it as primary dealers.
ProCredit bank Albania reported asset growth of 31% last year, reaching a total of 191.3 million euros by the end of the year. Overall bank assets grew by 16.4% and were 4 billion euros in December 2005. Net profits surged 114% to 2.7 million euros while loans grew 6% to 83.7 million euros, most of which were corporate loans. Fitch affirmed ProCredit’s foreign currency rating at B+. No other Albanian financial institution has obtained an international rating.