Currency Chaos – Il Sole 24 ORE

Assorted international currency notes.

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BRUSSELS – Guido Mantega, Brazil’s finance minister, aptly captured the current monetary Zeitgeist when he spoke of a looming currency war. What had seemed a bilateral dispute between the United States and China over the renminbi’s exchange rate has mutated into a general controversy over capital flows and currencies.

Today, every country seems to want to depreciate its currency. Japan has resumed foreign-exchange intervention, and the US Federal Reserve and the Bank of England are preparing another large-scale purchase of government bonds – a measure called quantitative easing, which lowers long-term interest rates and indirectly weakens the currency.

China is fiercely resisting US and European pressure to accelerate the snail-paced appreciation of the renminbi against the dollar. Emerging-market countries are turning to an array of techniques to discourage capital inflows or sterilize their effect on the exchange rate.

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via Currency Chaos – Il Sole 24 ORE.

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2 Responses to Currency Chaos – Il Sole 24 ORE

  1. I like it very much .Brazil country really done very good job.they launching a good currency.its really good for the people.

  2. e normale se il governo diminuisce il costo del denaro, diminuisce il debito ma salgono le vendite

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