• Due to a glitch in the old vBulletin software, some users were "banned" when they tried to change their passwords at the end of February. This does not apply after the site was converted to Xenforo. If you were affected by this, please us viua the Contact us link in the footer.

Currency Wars Heating Up


YouKnowWhatIMeanLike

Well-known member
Joined
Apr 13, 2011
Messages
7,225
In times of economic stress countries are temped to devalue their currency to boost exports and attract foreign investment. But currencies are not a one way street trading partner can retaliate and start a race to the bottom or resort to protectionism. Japan just devalued the yen by more than 15% against the $ and the currency wars are heating up. Where will the Euro stand at the end of the year against the dollar? $1.50? Is Draghi about to move?
 


YouKnowWhatIMeanLike

Well-known member
Joined
Apr 13, 2011
Messages
7,225
battle lines: "Developing countries are expected to voice objections to the monetary easing that has put downward pressure on currencies such as the dollar and sterling. Rich nations will probably respond by repeating long-held gripes about the undervalued currencies of Asian exporters."

but what about € vs $?
 

robut

Well-known member
Joined
Apr 6, 2008
Messages
8,752
Amid talk of currency war, EU ministers debate currencies as G7 warns of disorderly movements

Arriving Tuesday for a meeting of the 27 EU finance ministers, Irish Finance Minister Michael Noonan said there would be discussions about what might be discussed at the G-20 meeting. Several EU finance ministers, including those from France, Germany and Italy and Spain, will make the trip to Moscow. The EU will also be represented there.

"I think all this debate about the relative value of currencies is going to be an issue at the G-20 but we're coming through a period where the concern was the volatility of the euro," Noonan said. "It's a bit soon to argue that it's too strong."

Noonan said he wouldn't support any proposals that the ECB should intervene in the markets to get the value of the euro down.
So if currency war does break out .. from a selfish perspective .. where does that leave Ireland in its wrecked state bobbing along on the good ship euro atop the currency sea??
 

gerhard dengler

Well-known member
Joined
Feb 3, 2011
Messages
47,550

robut

Well-known member
Joined
Apr 6, 2008
Messages
8,752
ECB Enters Currency Wars Backward As Weidmann Talks Euro... Up? | Zero Hedge

During a speech this morning ( 11/02/2013 ), the ECB's Weidmann made it clear that the optics of EUR strength are critical to the union's survival (and Germany's balance of power vs the French):

*WEIDMANN SAYS ECB CANNOT SOLVE CRISIS, GOVERNMENTS MUST
*WEIDMANN: DEVALUATION HISTORICALLY DOESN'T HELP COMPETITIVENESS
*WEIDMANN: IF MANY NATIONS DEPRESS FX, CAN ONLY END IN FAILURE
*ECB'S WEIDMANN SAYS EURO ISN'T SERIOUSLY OVERVALUED
*WEIDMANN WARNS POLICY MAKERS AGAINST TRYING TO WEAKEN THE EURO
 

SPN

Well-known member
Joined
Feb 2, 2004
Messages
16,891
Devaluation doesn't help competitiveness?

How much are we paying this kvnt, and how quickly can his P45 be prepared?
 

Davidoff

Well-known member
Joined
Oct 4, 2010
Messages
1,485
Amid talk of currency war, EU ministers debate currencies as G7 warns of disorderly movements



So if currency war does break out .. from a selfish perspective .. where does that leave Ireland in its wrecked state bobbing along on the good ship euro atop the currency sea??
We're constantly reminded of the importance of our export sector, so a strong euro is a disaster on that front.

There can't be much doubt that if we had our own currency it would trade at a much lower level.
 

New Threads

Popular Threads

Most Replies

Top