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Brazil fines 2 banks for forex manipulation; Chile central bank holds key rate

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Brazil fines 2 banks for forex manipulation; Chile central bank holds key rate

* Brazilian antitrust regulator Cade announced a fine of about 30.3 million reais on Morgan Stanley and about 12.6 million reais on Royal Bank of Canada for allegedly colluding to manipulate foreign exchange rates. The regulator fined several European and U.S. banks as part of the same investigation in 2016.

* Chile's central bank held its monetary policy interest rate at 2.5%, noting that projected inflation stands at 3% over the two-year policy horizon. The decision was unanimous among the central bank's board members.

MEXICO AND CENTRAL AMERICA

* A Mexican judge has canceled an arrest warrant for Eduardo Cepeda, JPMorgan Chase & Co.'s country head for Mexico, days after it was issued over accusations of fraud in a 2007 loan the bank granted to a real estate developer, Reuters reported, citing a statement from the bank. JPMorgan also said prosecutors are not pursuing any further actions in the case.

* Fitch Ratings affirmed El Salvador's long-term foreign currency issuer default rating at B-, with a stable outlook. The rating reflects the country's recent history of local currency defaults and heightened political tensions that made reaching agreements on government financing difficult.

* Gentera SAB de CV said it formalized the acquisition of a 36.8% stake in Fin Útil SA de CV SOFOM ENR for about 2.59 billion Mexican pesos. Fin Útil has been lending in the Mexican market for more than 10 years and has a portfolio of more than 2 billion pesos.

* Banco Latinoamericano de Comercio Exterior SA said it signed on to participate in Banco Nacional de Comercio Exterior S.N.C. Institución de Banca de Desarrollo's trade guaranties program to foster Mexico's commercial activity and enhance its integration with the rest of the Latin America and Caribbean region.

BRAZIL

* Caixa Econômica Federal expects to raise at least 1.17 billion reais from the sale of more than 6,000 real estate properties, around 95% of which are classified as residential, Valor Econômico reported. The bank obtained the properties as collateral for mortgage loans.

* Financial technology firm Nubank has opened up its digital banking services to the general public following a trial period that was launched in October 2017, Folha de S.Paulo reported. The company is also considering introducing a debit card, but this is not a short-term plan.

ANDEAN

* Venezuela's government appointed Iris Medina, a vice president of the state-run National Housing Bank, as the new CFO of state oil firm PDVSA, Reuters reported, citing the official gazette.

* Peru's congress unanimously approved a bill to create a regulatory body within the country's SBS banking watchdog to supervise local savings and credit cooperatives, SEMANAeconómica reported.

SOUTHERN CONE

* Banco de Valores SA will bring its case regarding a fine of 39 million Argentine pesos before Argentina's Supreme Court after a lower court rejected the bank's appeal earlier in June. The bank said it considers the fine, which is tied to cash operations from 2008 over bond purchases in pesos and their sale abroad in U.S. dollars, to be "arbitrary and unconstitutional."

* Argentine President Mauricio Macri's government laid out the details of a plan to revitalize the country's debt-laden economy with a letter of intent and a memorandum of economic policies, including measures to end the government's supremacy over the central bank. IMF Managing Director Christine Lagarde welcomed the "strong and ambitious" economic plan, and noted that the government is looking to use $7.5 billion out of the $50 billion financing arrangement with the IMF to fund its budget, Reuters reported.

* Chile's bank regulation and supervision framework is one of the best in Latin America, Fitch Ratings said, adding that proposed reforms to the country's general banking law presented will harmonize regulations with Basel III standards and support banking system stability. The local regulator estimates that between $2.8 billion and $4.0 billion of additional capital will need to be raised during 2019 to 2024 to meet new capital requirements.

* Chilean consumer protection agency Sernac has asked Itaú CorpBanca to initiate a collective mediation process with clients who claim to have been defrauded through transactions they never authorized, La Tercera reported. The agency has received 138 complaints against the bank so far in 2018.

PAN LATIN AMERICA

* Citigroup Inc.'s Citi Private Bank appointed Ed Riley head of equities for the Americas. He previously served as managing director and head of capital markets product/platform structuring and origination within the global wealth and investment management division at Bank of America Merrill Lynch.

* Near-term global growth prospects remain robust despite rising trade tensions and political risks, Fitch Ratings said, adding that global growth forecasts have remain unchanged since March at 3.3% for 2018 and 3.2% for 2019.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: Woori Bank eyes Kyobo Securities; 2 Indian banks' HK branches under scrutiny

* Middle East & Africa: Saudi Arabia, Bahrain raise rates after Fed hike; Oberbank withdraws from Iran

* Europe: All eyes on ECB after Fed lifts rates; serious breach found at Swiss Raiffeisen

* Global Markets: New York markets pre-open: Stocks fall on hawkish Fed; euro up on ECB

The Daily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.