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  • 'Brilliant Minds' Trading for Romania Make Killing on Currencies

    From bnnbloomberg.ca

    Romania’s central bank boss has won plaudits for a career that’s set to extend beyond three decades. But he’s not taking the credit for a bumper year of profits that exceeded most of the country’s commercial lenders. The 1.2 billion lei ($280 million) windfall, according to Governor Mugur Isarescu, stems from managing Romania’s foreign-currency reserves. And the praise should go to a group of about 30 people who’ve balanced liquidity with profitability and navigated the tricky world of negative interest rates. “This team of boys with brilliant minds scroll up and down through their monitors, looking ... (full story)

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  • Post #1
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  • Jul 8, 2019 3:02am Jul 8, 2019 3:02am
  •  blackjacker
  • | Joined Jun 2012 | Status: complicated | 60 Comments
Central bank scalpers or what?!
2
  • Post #2
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  • Jul 8, 2019 3:38am Jul 8, 2019 3:38am
  •  Guest
  • | IP XXX.XXX.112.71
Well that is it - an aggravation. First I thought, CBs are not supposed to trade markets on a prop basis. Second, implementing standard advice. Tight (and clear) money management for traders that appear to be on a winning streak. That is fine until you consider that invariably the same group may be faced with a losing streak (the so called -Z score distribution). That distribution assures that you should run into that negative phase at some point. So it ultimately depends on whether they have an approach robust enough to maintain what seems to be healthy win rate and with a win ability close to some high -Z score, which in theory if above 2, might be quite dependable into the future. But I thought it was a matter of law - Central Banks do not invade commercial space. Can someone tell me why this is not just possible in this case but openly celebrated.
  • Post #3
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  • Jul 8, 2019 4:06am Jul 8, 2019 4:06am
  •  zamans98
  • | Joined Mar 2007 | Status: There is No Secret in Forex | 91 Comments
Looks like, central bank is trading and enriching certain individuals and groups.
  • Post #4
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  • Jul 8, 2019 7:33am Jul 8, 2019 7:33am
  •  foto
  • Joined Jan 2007 | Status: Member | 1,855 Comments
Brilliant minds or insider Central Bank information?
Conflict of interest is hardly not noticeable.
  • Post #5
  • Quote
  • Jul 8, 2019 3:15pm Jul 8, 2019 3:15pm
  •  RossEdwards
  • Joined Jun 2019 | Status: Member | 2,132 Comments
Isarescu is clearly speaking about his market intervention team. All CBs employ trading staff. All CBs trade at the margins. You obviously need to speak to someone who works in a CB and is familiar with CB operations.
"Conflict of interest"? "Enriching certain individuals and groups"? "CBs are not supposed to trade markets on a prop basis"?
.
  •  Guest
  • | IP XX.XX.57.0
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  • Story Stats
  • Posted: Jul 8, 2019 3:00am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 5  /  Views: 5,080
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