Currency

LONDON — British, Australian, and Spanish police have carried out a series of raids as part of an investigation into the allegedly corrupt practices of one of the world’s leading currency printing firms. Britain’s Serious Fraud Office said that officers in all three countries have carried out 16 searches and that British police had made two arrests as part of their probe into the workings of Australia’s Securency International PTY Ltd. The company is a pioneer in the production of plastic-based bank notes, which are more durable, cleaner, and far more difficult to fake than their...

Argentina's nine-year economic expansion appears to be slowing sharply, according to analysts, who predict growth of 2.5 percent to 3 percent this year, half the 5.1 percent projected by the government's 2012 budget and down sharply from last year's 8.9 percent rise. Some economists are even predicting recession before year's end, saying recently imposed currency and trade restrictions, high inflation, price controls and capital flight are making it tougher to protect Argentina from the global slowdown.

Washington, D.C. Global finance leaders failed yesterday to resolve deep differences that threaten the outbreak of a full-blown currency war. Various nations are seeking to devalue their currencies as a way to boost exports and jobs. The concern is that such efforts could trigger a repeat of the trade wars that contributed to the Great Depression, as country after country raises protectionist barriers to imported goods. The International Monetary Fund wrapped up two days of talks with a communique that pledged to deepen its work in the area of currency movements, including conducting studies on...

Reports that Greece is considering preparations to leave the euro common currency sent Asian stock markets lower Wednesday. Investors have long known of the possibility of a Greek withdrawal from the 17-nation euro currency union as it struggles to meet harsh austerity targets that are a condition of getting international bailout money. But a financial news service's report, which quoted former Greek Prime Minister Lucas Papademos and suggested such a euro exit could be approaching, flustered markets.

One of the best ways to get foreign currency when you're abroad is from an ATM. The transaction is instantaneous, the exchange rate is competitive, you have a record of all of your transactions, and the fees, though sometimes substantial, are deducted automatically from your account. But what if the automatic teller machine is out of order? Or the tiny, picturesque seaside village has a couple of local banks but no ATMs? Or you forget your personal identification number or -- worst of all -- lose your card?

Iran's Central Bank is moving to bring part of its official foreign currency exchange rate into line with the much higher rate on the streets. The bank announced Sunday that it would allow authorized money changers to trade dollars at 19,000 rials per dollar, while the official rate remains at 12,260. The Iranian currency has lost much of its value because of Western sanctions over Iran's nuclear development program. Iran has a burgeoning black market in currencies because of the wide gap between the official and street exchange rates.

GREECE AND THE EUROZONE: The possibility that Greece will leave the 17-nation euro currency union is being considered more and more publicly in Europe. THE BACKGROUND: There have been two and a half years of bailouts, on top of broken promises by Greece to reform. If it cannot get more rescue loans, Greece could go bankrupt and likely have to leave the eurozone. THE FALLOUT: Questions confronting leaders in Athens, Berlin and other eurozone capitals could soon be: What would happen if Greece left the euro?

The Belarusian currency has plummented in value after the government allowed a limited free float in a bid to ease the spiraling financial crisis. The Belarusian ruble weakened sharply to 8,600 rubles to the dollar compared with the official rate of 5,347 rubles. On the black market, the battered currency had been trading around 8,000 per dollar. The official rate remains in use for some transactions, mainly state-owned factories and businesses needing to buy imported materials.

South Korea's central bank says it has agreed with its Chinese counterpart to expand their currency swap deal as a backstop against global economic turmoil. The Bank of Korea said Wednesday that its won-yuan swap agreements with the People's Bank of China will double from 180 billion yuan to 360 billion yuan for the next three years. The South Korean central bank's announcement came as Chinese Vice Premier Le Keqiang met with South Korea's President Lee Myung-bak during a two-day trip to Seoul.

Connecticut U.S. Sen. Richard Blumenthal and Congressman Chris Murphy are calling on Congress to pass a measure that would impose sanctions on China for what they call unfair currency practices. The Connecticut Democrats have scheduled a news conference for 11:30 a.m. Monday at HABCO Inc. in Glastonbury. The Senate is likely to vote on a China sanctions bill on Tuesday, after partisan divisions delayed action last week. The proposal would make it easier to raise tariffs against Chinese goods if China keeps its currency undervalued.

British Prime Minister David Cameron on Thursday urged Europe to sort out its currency crisis, calling on the 17-country eurozone "to make-up or it is looking at a potential break-up. " "Either Europe has a committed, stable, successful eurozone with an effective firewall, well capitalized and regulated banks, a system of fiscal burden sharing, and supportive monetary policy across the Eurozone. Or we are in uncharted territory which carries huge risks for everybody," Cameron said in a speech in Manchester.

GREECE AND THE EUROZONE: The possibility that Greece will leave the 17-nation euro currency union is being considered more and more publicly in Europe. THE BACKGROUND: There have been two and a half years of bailouts, on top of broken promises by Greece to reform. If it cannot get more rescue loans, Greece could go bankrupt and likely have to leave the eurozone. THE FALLOUT: Questions confronting leaders in Athens, Berlin and other eurozone capitals could soon be: What would happen if Greece left the euro?

- State Street Corp. lost a bid to dismiss a lawsuit by an Arkansas pension fund that says the custody bank profited off foreign-currency trades at the expense of clients. State Street's motion to dismiss the complaint brought by the Arkansas Teacher Retirement System was denied by US District Judge Mark Wolf in Boston, according to an order. The pension fund says State Street charged inflated rates when buying foreign currency for clients and reported deflated rates when selling, pocketing the difference between the actual and reported rates.

U.S. Treasury Secretary Timothy Geithner urged Beijing to let China's tightly controlled currency rise in value amid strains over trade and industrial policy at a high-level economic dialogue Thursday. Beijing has allowed the yuan to rise gradually but Washington and other trading partners complain it still is undervalued, giving Chinese exporters an unfair advantage and hurting foreign competitors. Some American lawmakers are calling for punitive tariffs on Chinese goods if Beijing fails to act faster.

NEW YORK - Bank of New York Mellon Corp. won dismissal of Virginia's lawsuit claiming the world's largest custody bank defrauded state pension funds through foreign-currency transactions. Fairfax County Circuit Judge Terrence Ney on Tuesday dismissed the complaint against the bank, saying the state couldn't proceed under the Virginia Fraud Against Taxpayers Act. A copy of the ruling was provided by the bank and couldn't be immediately confirmed with the court after regular business hours.

Ahead of a meeting with Chinese leaders, Treasury Secretary Timothy Geithner is urging the Asian nation to let its currency strengthen and move forward with economic reforms. The treasury secretary said Thursday that the Obama administration welcomes recent changes to China's exchange rate system but believes the Chinese renminbi needs to appreciate further against the dollar. "It will provide China the independence and flexibility to respond to future changes in growth and inflation," Geithner said.

YEREVAN, Armenia - Armenians rushed to buy bread, butter, and other staples yesterday, and stores shut down in panic after the government announced it would let the national currency fall and was seeking a bailout from the International Monetary Fund. Banking authorities said the national currency - the dram - could sink up to 24 percent with the decision. The devaluation was sure to hurt ordinary Armenians, with prices for imported goods expected to rise sharply. The Armenian Central Bank decided to limit currency interventions and return to free float policy "due to the financial and...

HARARE, Zimbabwe - Zimbabwe announced yesterday that it is knocking 10 zeros off its hyper-inflated currency - a move that turns 10 billion dollars into one. President Robert Mugabe threatened a state of emergency if businesses profiteer from the country's economic crisis, a move that could give him even more sweeping powers to punish opponents in the event that political power-sharing talks fail. "Entrepreneurs across the board, don't drive us further," Mugabe warned in a nationally televised address after the currency announcement.

Treasury Secretary Timothy Geithner (GYT'-nur) says Europe needs to be creative in fighting its debt crisis. Geithner says Europe's success will depend on the ability of its governments and central bank to creatively and aggressively support countries that are pursuing the necessary reforms to get a handle on their debt problems. Geithner also tells the International Monetary Fund's policy committee that the U.S. welcomes the currency changes that China announced a week ago. But he says Beijing needs to do more to allow its currency to rise in value against the U.S....

NEW YORK- Bank of New York Mellon Corp., the world's largest custody bank, contested US claims that it defrauded clients in foreign-exchange transactions and asked a court to dismiss the government's lawsuit. BNY Mellon said disclosures that it made to clients about the trading negate the claim that the bank engaged in a scheme to defraud, according to a filing Tuesday in federal district court in Manhattan. "A party that knows exactly what it is getting, and at what price, cannot have been defrauded," the bank said.