2025-08-22 11:13

Syria to issue new banknotes in December, sources say Two zeros will be removed from denominations - sources Change aims to restore confidence in devalued pound Also marks symbolic move away from Assad's rule Russia's Goznak to print new notes - sources DAMASCUS, Aug 22 (Reuters) - Syria will issue new banknotes, removing two zeros from its currency in an attempt to restore public confidence in the severely devalued pound, according to seven sources familiar with the matter and documents reviewed by Reuters. The step is intended to strengthen the Syrian pound after its purchasing power collapsed to record lows following a 14-year conflict that ended with President Bashar al-Assad's ouster in December. Sign up here. The Syrian pound has lost more than 99% of its value since war erupted in 2011, with the exchange rate now at around 10,000 pounds to the U.S. dollar, compared to 50 before the war. The sharp depreciation has made daily transactions and money transfers increasingly difficult. Families usually pay for weekly grocery runs from black plastic bags holding at least half a kilogram of 5,000-pound notes, currently the highest denomination. In an attempt to ease transactions and improve monetary stability, Syria's central bank informed private banks in mid-August that it intended to issue new currency by "removing zeros", according to a document seen by Reuters. Reuters spoke to five commercial bankers, one central bank source and one Syrian economic official who said the central bank later informed them that two zeros would be removed. They spoke on condition of anonymity to discuss a decision that has not yet been made public. Meetings on the currency overhaul have been chaired by Central Bank Deputy Governor Mukhlis al-Nazer, according to the commercial bankers who attended the meetings. Nazer did not reply to a request for comment. Amal al-Masri, the head of the central bank's Banking Supervision Department, declined to comment saying the matter was strictly confidential. The Syrian finance ministry also did not respond to a request for comment. It was not immediately clear whether the revaluation of the pound would need legislative approval. Syria is set to hold its first elections to set up a new legislative assembly in September. Two of the bankers and another Syrian source familiar with the matter told Reuters that Syria had agreed with Russian state-owned money printing firm Goznak to produce the new notes. They said the deal was finalised when a senior Syrian delegation visited Moscow in late July. Goznak, which also printed Syria's currency during the Assad era, did not respond to requests for comment. POLITICAL SHIFT Under Assad, the use of foreign currencies was outlawed, but Syria's new leaders pledged to create a free-market economy and lifted restrictions to ease cash flow. While the economy has swiftly dollarised, with U.S. dollar prices everywhere from store fronts to fuel pumps, there are concerns about a Syrian pound liquidity crunch in a country with limited infrastructure for digital payments. Three of the Syrian bankers said one driving force behind the planned currency overhaul was concern over an estimated 40 trillion pounds circulating outside Syria's formal financial system. Issuing new notes would grant the government better oversight over the cash in circulation. It also carries symbolic weight, signalling a clear break from more than five decades of Assad rule. Bashar al-Assad's face appears on the 2,000-pound purple note, while his father, Hafez, features on the green 1,000-pound one. Officials plan an information campaign in the coming weeks before the formal launch of the new notes on December 8, the one-year anniversary of Assad's ouster. Two commercial bank directors told Reuters that Syria's central bank has instructed lenders to be ready for the roll out by mid-October. Central bank circulars seen by Reuters asked banks to produce detailed reports on their infrastructure, including the number of cameras, cash counters, and storage capacity, and run tests to ensure automated systems could handle the new currency. All five commercial bankers said they were told that a 12-month "coexistence period" will allow both old and new notes to circulate until December 8, 2026. Karam Shaar, a leading Syrian economist and consultant to the United Nations, said replacing banknotes featuring Assad's image was a necessary political shift. But he warned that the revaluation could confuse consumers, especially the elderly, and there was a lack of a clear regulatory framework or plan for full national implementation, given the gaps in the state's territorial control. "Alternatively, Syria could issue higher denominations of the same currency, say 20,000 or 50,000-pound notes, which would achieve similar goals in terms of easing cash handling and storage, while avoiding the substantial cost of a full currency overhaul, which could run into hundreds of millions of dollars," Shaar told Reuters. https://www.reuters.com/business/finance/syria-revalue-currency-dropping-two-zeros-bid-stability-sources-say-2025-08-22/

2025-08-22 10:55

Transnet picks 11 train operators Plans to add 20 million ton capacity from 2026/27 Third-party trains to add 10 million ton coal export capacity Transnet seeking $2 billion government funding for infrastructure JOHANNESBURG, Aug 22 (Reuters) - South Africa's government said on Friday it will allow private firms to run trains on its freight rail network, aiming to boost efficiency as state-owned logistics firm Transnet struggles to keep up with demand. Transnet, which runs the country's freight rail and port services, has faced equipment shortages and maintenance backlogs worsened by widespread cable theft and vandalism, prompting the government to seek private sector involvement. Sign up here. Transport Minister Barbara Creecy said 11 out of 25 train operating companies that applied for access to the freight network had met the requirements and will proceed to the next stage of negotiations and contracting, without naming the companies. South African logistics firm Grindrod (GNDJ.J) , opens new tab said on Friday it had been granted access to the Transnet network. "(The companies) are not cannibalising Transnet freight, they are adding capacity to what Transnet freight is already carrying," Creecy told reporters. The firms secured slots across 41 routes, with the initiative targeting routes used to transport bulk commodities like coal, iron ore, chrome, manganese, sugar and fuel. Contract conditions include railway safety permits, rolling stock readiness and securing port offloading capacity. Slot durations will range from one to 10 years, Creecy said. This year, the government has extended 149 billion rand ($8.42 billion) in guarantees to support Transnet's recovery but says it has limited resources to fund infrastructure development and address logistics backlogs. Creecy said Transnet was also seeking 35 billion rand in infrastructure funding from the government this year. Transnet's freight rail volumes dropped to 152 million metric tons in the 2023/24 financial year, down from a peak of 226 million metric tons in 2017/18. The new operators are expected to carry an additional 20 million tons of freight annually starting from the next financial year, advancing the government's goal of transporting 250 million tons by rail annually by 2029, Creecy said. The operators could add 10 million tons of coal export capacity over the next three years, she added, from current levels of around 50 million tons. Bulk mineral exporters such as Kumba Iron Ore (KIOJ.J) , opens new tab and thermal coal exporter Thungela Resources (TGAJ.J) , opens new tab have been forced to curtail production to align with Transnet's limited capacity. ($1 = 17.6597 rand) https://www.reuters.com/world/africa/south-africa-opens-freight-rail-network-private-firms-2025-08-22/

2025-08-22 10:45

Powell to speak at 1400 GMT, markets eye policy clues Fed chair has faced barbs from President Trump Oil, gold prices edge lower LONDON, Aug 22 (Reuters) - Stocks were broadly flat on Friday as traders awaited a key speech from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium this weekend that could shed light on the future direction of monetary policy. Powell's past speeches at the event have often moved markets, and this year's remarks are under particularly close scrutiny as his position has come under heavy criticism from U.S. President Donald Trump, sparking concerns about potential threats to the Fed's independence. Sign up here. A surge in U.S. producer prices in July has caused investors to pare bets on Fed rate cuts, with futures markets now pricing a 66% chance of a 25 basis point cut at its next meeting in September, down from an 85% chance just a week ago. Other Fed speakers at the Jackson Hole event have also appeared lukewarm on the idea of a September cut, despite recent signs of weakness in the U.S. labour market. A cautious tone from Powell on prospects for a September cut deferring to forthcoming jobs and inflation data could be enough to pare market pricing to a 50:50 call, said Nabil Milali, portfolio manager at Edmond de Rothschild Asset Management. Powell may also choose to defend the Fed's independence, Milali added. "We think that the unofficial theme of this meeting would be central banks' independence," he said. MSCI's broadest index of global stocks was broadly flat on the day, after European stocks edged higher in morning trading ahead of the speech. (.MIWD00000PUS) , opens new tab, (.STOXX) , opens new tab Wall Street futures were up 0.1-0.2%. , China's CSI 300 Index (.CSI300) , opens new tab gained 2.1%, after DeepSeek released an upgrade to its flagship V3 AI model and Reuters reported that Nvidia (NVDA.O) , opens new tab had asked Foxconn (2317.TW) , opens new tab to suspend work on the H20 AI chip, lending support to Chinese rivals. The dollar index, which measures the greenback against six peers, edged 0.1% higher, while the euro slipped 0.1% to $1.15985 after a revision to official data showed Germany's economy shrank by 0.3% in the second quarter. Japanese data showed core consumer prices slowed for a second straight month in July but stayed above the central bank's 2% target, keeping alive expectations for a rate hike in the coming months. That did little to help the yen , though, which was poised for a 1% decline for the week. BOJ Governor Kazuo Ueda will also speak at Jackson Hole this weekend. Oil prices slipped, with Brent crude last trading down 0.2% at $67.5 per barrel, following strong gains on Thursday as Russia and Ukraine blamed each other for a stalled peace process. Gold edged lower, with spot bullion off 0.2% at $3,330.9 per ounce. https://www.reuters.com/world/china/global-markets-wrapup-3-2025-08-22/

2025-08-22 10:35

LONDON, Aug 22 (Reuters) - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. As investors wait anxiously for Federal Reserve Chair Jerome Powell’s keynote speech at the Jackson Hole symposium today, the rates market is responding to a mix of robust economic and price signals and hawkish statements from Powell's colleagues. The Fed futures market has reduced the chances of a rate cut next month to just 70% from almost a sure thing not that long ago. Two-year Treasury yields have also matched their highest level since August 1 as some Fed officials - including Cleveland Fed boss Beth Hammack, Atlanta's Raphael Bostic and Kansas City's Jeffrey Schmid – expressed doubts about the wisdom of a September cut, with inflation still well above target and business surveys showing renewed vigour in the U.S economy. U.S. stock futures steadied early Friday but only after this week’s tech stock wobble resulted in five straight daily loss in the S&P 500. The dollar notched its best level in about 10 days, with the yen at its weakest since August 1 on softer Japanese inflation data. * Powell's Jackson Hole speech is typically a scene-setter for Fed policy over the year ahead and is expected to touch on changes to the average inflation targeting strategy as well as defending Fed independence - something in the spotlight again this week after administration demands for board member Lisa Cook to resign over alleged mortgage fraud. With minutes from the latest meeting and the latest Fed speeches showing no consensus on an urgent shift of stance, Powell is unlikely to signal a resumption of easing just yet - with no cast-iron case emerging from the latest sweep of economic data. * Chinese stocks appear to be on a roll, with the Shanghai benchmark reclaiming 3,800 for the first time in a decade on domestic tech excitement. Tokyo's Nikkei was flat and the yen weaker on the inflation update there, but political paralysis in Japan is putting pressure on the bond market, with 10-year bond yields hitting the highest since 2008 and 30-year yields rising further to all-time peaks. With persistent calls for Prime Minister Shigeru Ishiba to step down after recent elections, things could come to a head next week when the ruling Liberal Democratic Party releases a report on reasons for the poor poll. * Even as last weekend's excitement about a Ukraine peace deal has gone cold and Germany's second-quarter GDP was revised lower, European stocks were firmer on Friday - with some optimism about details of the U.S.-EU framework trade agreement released on Thursday and what it means for auto and pharma stocks. But Poland's WIG index posted its biggest decline in more than four months, falling 2.9% after the government proposed a hike to corporate income tax. Today's Market Minute * Investors are bracing for volatility as Federal Reserve Chair Jerome Powell walks a fine line between curbing inflation and supporting the labor market, with thin August trading poised to magnify any market moves from his Jackson Hole speech on Friday. * Vladimir Putin is demanding that Ukraine give up all of the eastern Donbas region, renounce ambitions to join NATO, remain neutral and keep Western troops out of the country, three sources familiar with top-level Kremlin thinking told Reuters. * The Trump administration is considering a plan to reallocate at least $2 billion from the CHIPS Act to fund critical minerals projects and boost Commerce Secretary Howard Lutnick's influence over the strategic sector, two sources familiar with the matter told Reuters. * Is the U.S. economic outlook so weak that it warrants multiple interest rate cuts? Or are U.S. markets pulling in huge inflows from abroad because the country's outlook is so attractive? ROI markets columnist Jamie McGeever explores this conundrum in his latest piece. * Lambasting credit rating agencies is a favorite pastime of many debt market participants. However, writes Income Securities Advisor , opens new tab publisher Marty Fridson, self-interest appears to drive many of the most common criticisms, and history suggests these much-maligned appraisers actually do a pretty good job. Chart of the day Helping Shanghai's index to 10-year highs, Chinese tech stocks are surging - with the tech-focused STAR 50 index (.STAR50) , opens new tab up almost 8% on Friday and up almost 25% over the past month. Beijing is pushing development of its domestic chipmaking sector amid standoffs with Washington, AI startup DeepSeek released its latest model to fit with the local tech ecosystem and there were sharp gains in fintech and stablecoin-concept shares after a Reuters report signalled a major shift in Beijing's stance on digital assets. Weekend reads GEOGRAPHY MATTERS: San Francisco Fed , opens new tab economists look into U.S. state level jobless claims to assess the health of the national labor market and conclude that as of mid-2025 employment conditions were pretty stable. Developing a new 'Labor Market Stress Indicator' from these state datasets and adjusting for the size of the states and their overall shares, the model shows why apparent labor market weakness in the summer of 2024 was a false signal on the overall economy and stability through the middle of this year indicates only a 5% chance of recession ahead. HUBBARD ON FED REFORM: Once tipped as a candidate for the Fed Chair, Glenn Hubbard - former Council of Economic Advisers chair under George W. Bush - writes that the next Fed leader "will have to confront fundamental questions about the institution's approach to policymaking , opens new tab". In a piece on Project Syndicate, Hubbard said Trump is wrong to impugn the motives of standing Fed Chair Jerome Powell but the Fed had made serious mistakes and needed an overhaul of its processes, forecasting, stance on regulation and structure. WHAT TRUMP SHOULD HAVE DONE: Sketching how they think President Donald Trump should be handling explosive U.S. trade deficits, , opens new tab economists Vijay Joshi and David Vines reckon weakening the dollar substantially - by more than 30% - should be central to any plan. However, in a piece on CEPR's VoxEU site, they reckon that to do this successfully over time will require much more fiscal consolidation and, ideally, some global agreement - a very different pact to the 'Mar a Lago Accord' proposed by some of Trump's team. GERMAN AGEING AND MIGRATION: OECD economists model how a shrinking working age population in Germany , opens new tab and its main trading partners cuts GDP noticeably until 2030 and German manufacturers experience a significant deterioration in their position on global markets. However, it also shows that if net migration inflows increase moderately compared to a 2010-2019 average, particularly workers with vocational education and training degrees, the negative effects of ageing on the competitiveness of the manufacturing sector can be reduced to a large extent. NUCLEAR-ARMED JAPAN?: A contingent of senior Japanese lawmakers are beginning to think the unthinkable in the only nation to have suffered an atomic bomb attack. Surrounded by nuclear-armed neighbours China, North Korea and Russia, a Reuters Special Report details how Japan too may have to deploy weapons of mass destruction given the serious doubts sown about the United States' commitment to defend its allies. Today's events to watch * Canada June retail sales (8:30 AM EDT) * Federal Reserve Chair Jerome Powell speaks on "Economic Outlook and Framework Review" at 2025 Jackson Hole Economic Policy Symposium (9:00 AM EDT); Boston Fed President Susan Collins speaks * U.S. corporate earnings: Workday Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-08-22/

2025-08-22 10:25

MUMBAI, Aug 22 (Reuters) - The Indian rupee weakened further on Friday against a stronger dollar ahead of a speech by Federal Reserve Chair Jerome Powell, capping a volatile week for the Asian currency that has been pressured by U.S. tariff-related uncertainties. The currency closed 0.3% lower on Friday at 87.5300, against its close of 87.27 in the previous session. It was down 0.02% for the week. Sign up here. The local unit, which opened at 87.4575 on Monday, saw sharp swings through the week due to domestic and geopolitical developments. Talks between the U.S. President Donald Trump and the Russian and Ukrainian presidents, coupled with the Indian government’s proposed tax cuts, pushed the rupee above the 87 handle for the first time this month on Tuesday. However, concerns over tariffs on Indian goods, which are set to take effect on August 27, and importers’ demand for the greenback weighed on the currency on Thursday when it posted its biggest single-day decline in a month. “Looming U.S. tariffs on Indian goods and criticism over Russian oil purchases kept sentiment weak, with continued downside risk (expected in) the rupee through September,” said Jigar Trivedi, senior currency analyst at Reliance Securities. Meanwhile, the dollar index was up 0.14% at 98.742, as of 3:37 p.m. IST, and inched towards the 99-mark ahead of Powell's speech at the Jackson Hole symposium later in the day. His comments will be scrutinised for clues on a September rate cut and the policy trajectory for the rest of the year. Investors are pricing in an over 80% chance of a cut next month, but the question is whether Powell will push back against such aggressive expectations. While his recent comments have leaned hawkish, they came before the weaker July jobs report. Most Asian currencies traded lower on Friday, with the Taiwan dollar and Indonesian rupiah falling sharply against the dollar and leading losses, while the Korean won and Philippine peso climbed in intraday trade. https://www.reuters.com/world/india/rupee-continues-slide-looming-us-tariffs-posts-marginal-weekly-loss-2025-08-22/

2025-08-22 09:58

Aug 22 (Reuters) - Sterling steadied after dipping to a two-week low against the dollar on Friday as traders pared wagers on a rate cut by the U.S. Federal Reserve next month. Sterling was flat against the dollar at $1.3416 after touching its weakest level since August 7. It was slightly higher on the euro at 86.46 pence to the common currency . Sign up here. It was on course for a 0.9% decline for the week, reversing course after gaining over the previous two weeks on the back of a hawkish repricing of the Bank of England's monetary policy path and upbeat economic data. While better than expected business survey data and a comforting public borrowing update released on Thursday helped buoy the pound this week as well, analysts remain cautious heading into the autumn budget announcement. "Until we know what's in the budget, sterling could be subject to some headwinds," said Jane Foley, head of FX strategy at Rabobank. "It's still going to be difficult for the chancellor to avoid significant tax hikes in order for the Labour government to meet its spending commitments through the next fiscal year," Foley said. The tax hikes could dent recently improved consumer confidence, presenting a headwind to growth, she said. The benchmark 10-year gilt yield on Friday rose to its highest level since May 29 and was last up four basis points at 4.7660%. Meanwhile, the dollar was a touch firmer against a basket of peers at 98.71. Investors trimmed rate cut wagers ahead of an eagerly anticipated speech from Fed Chair Jerome Powell scheduled for 1400 GMT. Money markets are currently pricing in a 73% chance of 25 basis point rate cut next month, down from 85% a week earlier, per CME's FedWatch tool. https://www.reuters.com/world/uk/sterling-track-weekly-fall-outlook-clouded-by-fiscal-risks-2025-08-22/