Showing posts with label yen. Show all posts
Showing posts with label yen. Show all posts
Saturday, March 19, 2011
Monday, October 11, 2010
Forex markets on alert as IMF talks fail to gain currency
Foreign exchange markets are braced for fresh turbulence after talks at the IMF failed to ease fears of a currency war
Larry Elliot
Guardian
The world's foreign exchange markets are bracing themselves for fresh turbulence after weekend talks at the International Monetary Fund failed to ease fears of a currency war.
Dominique Strauss-Kahn said the time for talk was over after the fund's main policy body made little progress in settling the row between Washington and Beijing over China's alleged manipulation of its currency.
"The problem is that we can talk and talk and talk," said the IMF's managing director after it released a communique pledging member countries to "move toward a more balanced pattern of global growth, recognising the responsibilities of surplus and deficit countries".
Strauss-Kahn fears a "race to the bottom" as countries seek to depress the value of their currency to export their way out of recession.
He said: "The language is ineffective. The language is not going to change things. Policy has to be adapted. What we need is real action, and I don't believe that this action can be done in another way, in a non-co-operative way."
Finance ministers and central bank governors expressed concern about the deteriorating atmosphere, which has seen Japan weaken the yen and China warn that American demands for a sharp revaluation of the renminbi would lead to social and economic unrest. Last week, the dollar fell sharply against the yen and the euro.
Tim Geithner, the US treasury secretary, kept up the pressure on Beijing following the meeting of the IMF's international monetary and financial committee, the organisation's steering body.
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Will the Dollar Rebound Before Being Dissolved Into Global Currency?
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Guardian
The world's foreign exchange markets are bracing themselves for fresh turbulence after weekend talks at the International Monetary Fund failed to ease fears of a currency war.
Dominique Strauss-Kahn said the time for talk was over after the fund's main policy body made little progress in settling the row between Washington and Beijing over China's alleged manipulation of its currency.
"The problem is that we can talk and talk and talk," said the IMF's managing director after it released a communique pledging member countries to "move toward a more balanced pattern of global growth, recognising the responsibilities of surplus and deficit countries".
Strauss-Kahn fears a "race to the bottom" as countries seek to depress the value of their currency to export their way out of recession.
He said: "The language is ineffective. The language is not going to change things. Policy has to be adapted. What we need is real action, and I don't believe that this action can be done in another way, in a non-co-operative way."
Finance ministers and central bank governors expressed concern about the deteriorating atmosphere, which has seen Japan weaken the yen and China warn that American demands for a sharp revaluation of the renminbi would lead to social and economic unrest. Last week, the dollar fell sharply against the yen and the euro.
Tim Geithner, the US treasury secretary, kept up the pressure on Beijing following the meeting of the IMF's international monetary and financial committee, the organisation's steering body.
Read Full Article
RELATED ARTICLE:
Will the Dollar Rebound Before Being Dissolved Into Global Currency?
Fresh food that lasts from eFoods Direct (Ad)
Live Superfoods
Print this page
Thursday, October 7, 2010
IMF chief fears risk of currency wars after Japan's zero interest rate move
The Bank of Japan’s surprise move to reinstate zero interest rates has led to a warning of the danger of a currency war from the head of the International Monetary Fund.
Philip Aldrick and Jonathan Russell
Telegraph
Dominique Strauss-Kahn warned that moves by central banks across the world to cut interest rates and carry out billions of pounds worth of quantitative easing could upset the global economy recovery as currencies chased each other ever lower.
In an interview with the Financial Times, he said: “There is clearly the idea beginning to circulate that currencies can be used as a policy weapon. Translated into action, such an idea would represent a very serious risk to the global recovery ... Any such approach would have a negative and very damaging longer-run impact.”
Japan surprised markets by adopting a zero interest rate policy and announcing plans for quantitative easing (QE) in an attempt to inject fresh stimulus into the economy.
The move led to an immediate fall in the value of the yen against the dollar.
The Japanese central bank has pledged to buy assets worth five trillion yen (£38bn) and cut its overnight rate to between zero and 0.1pc,from 0.1pc, reinstating the so-called “zero interest policy” that the Bank only ended in July 2006.
It will keep its benchmark rate effectively at zero until establishing price stability, adopting a similar loose policy commitment to the US Federal Reserve.
The size of the QE programme roughly matches the extra stimulus package desired by the Japanese government. Japan is running out of options as it seeks to reinvigorate its economy in the face of national debt running at twice the national output – the largest of the advanced economies.
Read Full Article
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Live Superfoods It is time to Wake Up! You too, can join the "Global Political Awakening"!
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Telegraph
Dominique Strauss-Kahn warned that moves by central banks across the world to cut interest rates and carry out billions of pounds worth of quantitative easing could upset the global economy recovery as currencies chased each other ever lower.
In an interview with the Financial Times, he said: “There is clearly the idea beginning to circulate that currencies can be used as a policy weapon. Translated into action, such an idea would represent a very serious risk to the global recovery ... Any such approach would have a negative and very damaging longer-run impact.”
Japan surprised markets by adopting a zero interest rate policy and announcing plans for quantitative easing (QE) in an attempt to inject fresh stimulus into the economy.
The move led to an immediate fall in the value of the yen against the dollar.
The Japanese central bank has pledged to buy assets worth five trillion yen (£38bn) and cut its overnight rate to between zero and 0.1pc,from 0.1pc, reinstating the so-called “zero interest policy” that the Bank only ended in July 2006.
It will keep its benchmark rate effectively at zero until establishing price stability, adopting a similar loose policy commitment to the US Federal Reserve.
The size of the QE programme roughly matches the extra stimulus package desired by the Japanese government. Japan is running out of options as it seeks to reinvigorate its economy in the face of national debt running at twice the national output – the largest of the advanced economies.
Read Full Article
RELATED ARTICLE:
Fresh food that lasts from eFoods Direct (Ad)
Live Superfoods
Print this page
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