Monday 13 April 2015

CHAIRMAN'S MESSAGE - Paolo Provera, Chairman ITFA / General Manager ABC International Bank Plc.- Milan Branch

Dear Members and Friends,

It is with great pleasure that I am writing this third newsletter of 2015 as, by the time you get to read this, we will be well into the second quarter of the year. With Q1-2015 behind us, I am sure that you will all agree that it was a rather challenging one to say the least, as trading conditions around the globe made sure that we were kept on our toes for pretty much most of the time.

As we all know, Emerging Markets have had a rough start to 2015, with the continuing appreciation of the dollar (negatively affecting those countries that have got a portion of their debt denominated in US dollars), declining price of oil and overall declining demand in global growth, most notably from China and Russia. However, recent dovish comments from the US Federal Reserve’s Chairwoman Janet Yellen may herald a deceleration in dollar gains, particularly against Emerging Market Currencies.

Global concerns about weak inflation continue to make headlines, with more than 20 central banks having eased policy so far this year, many in surprise moves. Lower inflation due to commodity-price weakness is having differential effects on oil importers and exporters. A number of countries and regions have posted stronger-than-expected growth (the Eurozone, for example), but there have been more disappointments (US, China, Brazil) than positive surprises. It is imperative therefore to appreciate that, all-in-all, monetary policy is loose (or easing) in most countries with the ultimate aim of stimulating global growth and propping up inflation and inflationary expectations. 

As we have communicated in our previous newsletters, the ITFA Board is working hard to continue to grow the depth and knowledge of expertise within the Association, by attracting new members from a wide array of regions and lines of business. To this effect, we can comfortably and proudly say that each month we are welcoming 3-4 new institutions, on average; quite a feat as more international players are appreciating the benefits of forming part of an Association such as ours.

On a different note, our Association has once again been invited to take part in a survey carried out as a joint initiative between ITFA and the Asian Development Bank (ADB). The survey can be accessed by clicking here. Whilst we thank you in advance for taking the time to reply to this survey, please do not hesitate to contact your Regional Committee's chair person or directly to Sean Edwards (sean_edwards@gb.smbcgroup.com) or Lorna Pillow (info@itfa.org) via email.

As highlighted above, the challenging market conditions for Emerging Market economies in 2015 are taking its toll on Emerging Markets, with this topic expected to be one of the main points of discussion at the ITFA 42nd Annual Conference which will be held in Dubai at the Jumeirah Beach Hotel, between the 28th and the 30th of September. Rest assured that the ITFA team will leave no stone unturned in ensuring that this much awaited event will turn out to be a great success…we thank you for your constant support! So please…save the date!

As always, we look forward to hearing from you with any feedback you may want to share with us by sending an email to myself, any of the Board Members or to our general email, info@itfa.org.  

Best wishes

Paolo Provera

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