The News Review:

- FREX-Euro falls on S&P Spain downgrade econ forecast
- FREX-Euro pound tumble vs dollar on banking sector woes
- Brazil central bank sells $2.5 bln in forex swaps
- FREX-Euro sterling lower on bank sector econ woes
- Forex : CBN to clamp down on parallel market operators
- Dukascopy Morning Forex verview
- FREX-Dollar yen slide as BoA rescue boosts confidence

FREX-Euro falls on S&P Spain downgrade econ forecast
Reuters 
9 pct in2009 * Sterling falls as market weighs UK bank bailout RBSlosses * Trade subdued as U. markets closed on Monday (Adds quotes updates prices changes byline) By Jessica Mortimer LNDN Jan 19 (Reuters) – The euro fell against the dollaron Monday on worries about the health of the euro zone economyafter a ratings downgrade on Spain and grim economic forecastsfrom the European Commission. Standard & Poor’s said it cut Spain’s debt rating to “AA+”warning of a severe deterioration in public finances promptingfears that economies such as Portugal and Ireland may suffer thesame fate after Greece’s downgrade last week [ID:nLJ639727].

FREX-Euro pound tumble vs dollar on banking sector woes
Reuters 
8 pct on banking woes; yen up * Market weighs UK bank bailout massive RBS losses * EU exec sees EZ econ shrinking; S&P downgrades Spain (Adds quotes updates prices) By Jessica Mortimer LNDN Jan 19 (Reuters) – The euro and the pound fellsharply against the dollar on Monday as fears about the grimoutlook for the global banking sector left investors extremelyaverse to risk. The boost to sentiment from the earlier news of a second UKbank rescue deal quickly dissipated sending European shares.

Brazil central bank sells $2.5 bln in forex swaps
Reuters 
5 bln in forex swaps| Currencies| Reuters. 5 billion in an auction of currency swap contracts onMonday rolling over securities that mature next month.
Related from Siera-leone: The Central Bank of Sierra Leone and ‘Coin Changers’

FREX-Euro sterling lower on bank sector econ woes
Reuters 
markets closed on Monday (Adds quotes updates prices) By Tamawa Desai LNDN Jan 19 (Reuters) – The euro and sterling were loweron Monday as investors remained cautious about the ailingbanking sector and faltering economy overriding a new UK bankbailout plan and optimism for more U. Britain threw its troubled banks another multi-billion poundlifeline on Monday by allowing them to insure against steeplosses and guaranteeing their debt to stop the credit crunchpushing the economy into a deep slump. [ID:nLJ453422] Continued.

Forex : CBN to clamp down on parallel market operators
The Punch Nigeria 
n Friday BDC operators sold one United States dollar at between N157 and N162 in Lagos and bought for N150. The British Pound sterling sold for N239 while the euro sold for N200. The increased opportunities for arbitrage in the forex market had seen a rapid rise in the number of BDC outlets operating in the market doubling to almost a thousand with some BDC operators opening up to six outlets in the past one month alone. Soludo had warned banks last Tuesday not to engage in forex speculation which he said would result in the suspension of any defaulting bank from the forex market. The CBN also issued new forex market guidelines after an emergency meeting of the Monetary Policy Committee on Wednesday which include the reintroduction of the Retail Dutch Auction System to replace the Wholesale Dutch Auction System effective on Monday (today). Under the RDAS regime banks and other authorised dealers are no longer allowed to bid for forex on their own accounts but on behalf of customers. The CBN said in a circular sent to authorised dealers last week that all bids must be for a minimum of $100000 and must be backed by cash to be successful.

Dukascopy Morning Forex verview
Forex Hound NY 
The Euro found strength on the downbeat US data gaining across the board. Helping support the Euro was reported comments from Trichet that he had no plans for a zero interest rate policy. The British pound may have fallen through most of the US trading session but it still managed to end the day higher against the greenback. The Japanese Yen was sold as stock markets rallied across the world.

FREX-Dollar yen slide as BoA rescue boosts confidence
Reuters 
Johnson NEW YRK Jan 16 (Reuters) – The dollar and yen weakened onFriday as fresh government aid for U. banks eased someinvestor concerns about stress in the financial sectorreducing safe-haven flows into the U. and Japanesecurrencies.