The Japanese Bank Kuroda and the Japanese Prime Minister Kishida held talks, and the yen once bounced more than 1%

The Bank of Japan (BoJ, BOJ) President Kuroda Haruhiko held talks with Japanese Prime Minister Fumio Kishida on the morning of the 30th. The market speculated that the Japanese government and the Bank of Japan may cooperate to deal with the recent sharp depreciation trend of the yen, which caused the yen to rise today, and once bounced more than 1 % (i.e. the dollar fell more than 1% against the yen at one point).

As of 13:05 on the 30th, Taipei time, the dollar against the yen depreciated (that is, the yen rebounded) 0.84% ​​to 121.83, and earlier fell to 121.28, a decline of 1.3%.

According to Japanese media reports, Bank of Japan President Haruhiko Kuroda visited the Prime Minister’s residence on the morning of the 30th and held talks with Prime Minister Fumio Kishida. The Kuroda and Kishida talks are expected to include not only financial market movements such as the recent sharp depreciation of the yen and rising interest rates, but also an exchange of views on matters such as Russia’s deployment of troops to Ukraine and the rising uncertainty in the global economy.

The President of the Bank of Japan and the Prime Minister of Japan will hold regular talks at the Prime Minister’s official residence, with the last meeting taking place on November 4, 2021.

Because of Kuroda and Kishida’s talks, the market speculated that the Japanese government and the Bank of Japan may cooperate to deal with the current sharp depreciation trend of the yen, which also pushed up the yen exchange rate today.

Japanese Finance Minister Makoto Kanda held talks in the Ministry of Finance on March 29 with Andy Baukol, Acting Deputy Secretary of the U.S. Treasury Department. After the meeting, Masato Kanda told the press corps that “the exchange rate stability is very important, and we do not want drastic changes.” The U.S. dollar rose above the so-called “125” level of the Kuroda line of defense against the yen on March 28, hitting a new high in six years and seven months.

Regarding the possibility of intervening in the exchange rate, Kanda said, “The exchange rate is determined by the market. We will conduct close communication with monetary authorities such as the United States and make appropriate responses.”

Russia pays some sovereign bond interest in U.S. dollars to avoid default on sovereign debt

Russia has temporarily avoided default on its sovereign debt by paying interest on s
Global rating agency Standard & Poor’s downgraded Russia’s debt default risk rating to “CC” from “CCC-“, Reuters reported, while saying Russia was struggling to repay dollar-denominated Eurobonds in 2023 and 2043. The Russian Finance Ministry said it had paid $117 million in interest on sovereign bonds due. The agent payee is Citibank in London. Citi declined to comment. The report said that some creditors have received Russian dollars to pay interest on debt due this week, avoiding its first sovereign debt default since 1998.

However, S&P believes that the European bond interest that Russia has to pay in the coming months may face difficulties due to international sanctions that reduce Russia’s available foreign exchange reserves.

Kremlin spokesman Dmitry Peskov stressed that Russia has the necessary funds and that any default on its debts is entirely man-made.

Long queues at ATMs in Russia and Ukraine | Threaten to explode the Great Depression

Russia has attacked Ukraine in an all-round way. The news shows that Ukrainian people who are eager to withdraw funds have long queued at bank ATMs, and even Russian people have rushed to the ATM because they are worried that they will not be able to withdraw cash. According to foreign media analysis, the impact of bank runs on the economy can be borrowed from the Great Depression of the US economy in the 1930s.

The Wall Street Journal reported on the 24th that the day after Russian President Vladimir Putin ordered a “special military operation” against Ukraine on the 24th, there were long queues in front of ATMs in Moscow banks, and people were worried that the government may restrict people from withdrawing cash. News of the cash being withdrawn from banks flooded social media.

Reuters reported that Ukrainian residents who chose to stay in Kiev also formed long queues outside banks and shops, hoping to withdraw cash and stock up on supplies. Others hurriedly packed their bags and looked around for transportation out of the city.

Business Insider reported on the 24th that local Ukrainian banks have decided to set a cash withdrawal limit. The Donetsk People’s Republic (DPR), located in the Udon region, this week restricted people to withdrawing 10,000 rubles (about $129) a day from ATMs. The National Bank of Ukraine also set the daily withdrawal limit at 100,000 Ukrainian hryvnia (about 3,339 U.S. dollars) on the 24th.

In order to avoid a domestic disaster, the Russian central bank announced emergency response measures on the 23rd, and the Russian stock market plummeted 38% on the same day due to the war between Russia and Ukraine. The Russian central bank’s plan includes closing the stock exchange and buying hundreds of millions of rubles, but it has not yet set a limit on people’s withdrawal of cash.

The fear of a run caused by these phenomena could eventually become a “self-fulfilling prophecy”, leading to bank failures, the report said. During the Great Depression in the United States from 1929 to 1939, there was a bank run incident, which eventually led to a large wave of unemployment and no way for people to get loans.

David Wheelock, senior vice president and special policy adviser to the president at the Federal Reserve Bank of St. Louis, pointed out in 2013 that locations with high rates of bank failures in the United States also saw larger declines in consumer spending.

After the Wall Street crash in October 1929, anxious Americans went around withdrawing cash, and many banks were forced to fail. With limited daily deposits in bank vaults, there was a sudden run on the bank, forcing the bank to sell assets in exchange for cash to customers who wanted to withdraw money, and then collapsed and went bankrupt.

The Federal Reserve Bank of St. Louis reported thousands of bank failures, leading to shrinking lending activity, business closures and rising unemployment. The crisis also sparked deflation, as bankers decided to build up cash reserves and people struggled to hoard cash. As deposits dwindled, so did the amount banks could lend, meaning people had less money to pay for goods and services, and the prices of those goods and services dwindled.

According to the St. Louis Fed report, deflation has further forced banks, businesses and debtors into bankruptcy, reducing consumption and ultimately driving up unemployment.

Crypto.com hack loses over $30 million, 5,000 bitcoin and ether stolen

The latest development of the hack of the cryptocurrency exchange Crypto.com, the official announcement that a total of 483 accounts were hacked, and about more than $30 million worth of bitcoin and ether were stolen.

The victims of the Crypto.com hack have finally been announced, with a loss of more than $30 million.

On January 17, the cryptocurrency exchange Crypto.com was hacked and the service was suspended for 14 hours, with users unable to withdraw any funds. According to official data, a total of 483 accounts were hacked, and hackers stole 443.93 bitcoins and 4,836.26 ethers, with a total value of about $33.8 million, and about $66,000 worth of other digital assets were stolen.

Bitcoin prices fall to lowest in months after US Fed remarks - BBC News

Fortunately, Crypto.com said that it has compensated all users for their losses and restored the assets in their accounts to their original positions.

Crypto.com is one of the fast-growing cryptocurrency exchanges. The most notable is to buy the naming rights of the NBA Los Angeles Lakers Stadium at the end of 2021, change the original Staple Center to Crypto.com Arena, and obtain many innovative Supported by investment funds, and this hack is the first time they have been hacked.

What is curious about the incident is that many users have used a two-factor authentication mechanism (2FA). Why can hackers bypass the two-factor authentication and take away the assets in the account? Crypto.com didn’t give an explanation, but the way they handled it was to completely reset all users’ 2FA validators while moving the exchange’s authentication mechanism to the new architecture.

Crypto.com | The Best Place to Buy, Sell, and Pay with Cryptocurrency

A total of 20 cryptocurrency exchanges have been hacked in 2021, and this only counts the loss of more than $10 million or more, of which six cases have losses of more than $100 million. As cryptocurrency transactions become more and more prosperous, how users can protect their assets has become the most important required course.