«Currency war» back strongly in 2015 and anxiety dominate the global markets

[yota691]

With the collapse of the ruble and the policies of central banks                                                                                                                        «Currency war» back strongly in 2015 and anxiety dominate the global markets

 

     

Euro currency continues to decline (archival)

Posted: Monday, December 22, 2014

PARIS (AFP)

Back issue of exchange rates to the fore strongly and with it the «currency war» can be raging in 2015, in light of the collapse of the ruble and the Nigerian naira and the strict policies of the central banks of Japan and the Swiss.

But economists believe that no country can be allowed to run in the same open war on the currency; so it will be a war with unconventional weapons.

 

 

And «currency war» is a race between countries that reduce non-stop interest rates. It is a deeper phenomenon of violent and intermittent shocks associated with a decline in oil prices, which led to the collapse of the ruble this week.

 

The aim of the currency war is to win stakes in export markets. The results, they are cases of a sharp rise in inflation and large destabilize the economy.

He summarized the Council of Economic Analysis, which includes experts advising the French government, the case by saying that he «can not be a weak currency to everyone at one time. If the currency fell another price rise », pointing out that« concept »Currency war« born of this calculation fact, that the race to reduce the currency can only end badly value ».

Tension in the foreign exchange markets recently, especially in emerging countries that suffer from the effects of falling oil prices and fluctuations in the price of the ruble, and the collapse of the entire price of the Nigerian naira currency. In Turkey, the price of a pound to its lowest historical level.

The European currency, it has lost since the beginning of the year more than ten percent of its value against the dollar, after the announcements of the European Central Bank, contrary to the US monetary tightening policy.

In contrast, Switzerland is making strenuous efforts in the face of rising price of its currency. The central bank was forced Thursday to make a decision unusual, which is the introduction of negative interest rates on bank deposits. They impose any tax to stem the flow of capital, as investors resorted to because of the weakness of the Swiss franc and other currencies.

But Anton Prendergast, chief economist at Kandriam group, did not see in all of this currency war, but defensive reactions and sporadic attacks. He said «We are in a very tense situation, where no country can bear a significant rise in the price of its currency, rather than a currency war».

Non-traditional exercises keep any purchase large amounts of stock, as happened in the United States and being in Japan, was carried out by the European Central Bank. He «But lower interest rates will be slight impact.»

Many analysts believe that the evolution of the exchange rate will be linked especially on the willingness of Americans to raise the price of their currency, which recorded an increase of 14% against the yen since the beginning of the year.

The key one is the price of oil. If remained low, it will protect to some extent trade balances, and makes countries less vulnerable to fluctuations in exchange rates, but those that rely heavily on black gold.

 

[MyLadiesDaddy]

With the climax around Sep. 2015

[skeetdog]

Thanks Yota....Time marches on...No one can predict the future...except a fool....

[MyLadiesDaddy]

You really wanna stop before your childish tirade gets us both in trouble.

[yota691]

 

 

Currency wars back with unconventional weapons destabilize the global economy

• Agency eighth day
  
• December 22, 2014, 13:36
  
•  
  
• 43 Reading
  

Follow-up - ((eighth day)) The collapse of the Russian ruble and the Nigerian naira to the strict policies of the central banks of Japan and the Swiss, the issue of exchange rates back to the fore strongly with currency war could be raging in 2015.   But economists believe that no country can be allowed to run in the same open war on the currency, so it will be a war with unconventional weapons.   Interest rates and stand out as one of the most prominent weapon in the new currency war, which could lead to a deeper than the violent and intermittent shocks associated with lower oil prices, which led to the collapse of the ruble results.   The aim is to gain shares in export markets, and can lead to a sharp rise in inflation and destabilize the economy.    The crisis of the thirties of the last century linked to reducing currency rates starting.   He summarized the Economic Analysis Council, which includes experts advising the French government that it "can not be a weak currency to everyone at one time if the currency dropped the price to rise again."   And dissemination of Nouriel Roubini, an economist who became famous prediction of the financial crisis in 2008, the early December an article entitled "Back currency wars".   And verified in an article in the Japanese central bank's decision to enhance monetary easing policy followed by in a move that surprised everyone, which led to a decline in the yen.   Roubini believes that careful monetary easing in Japan reflected on South Korea's direct competition for Japanese exports where forced the central bank to cut interest rates twice during the 6 months to contain the yen's strength.   Since this article was published in the escalation of tension, especially in emerging countries exchange markets, which saw the collapse of the ruble and the naira and the Turkish lira fell to its lowest historical level.   The European currency has lost since the beginning of the year more than 10 percent of its value against the dollar after the European facilitate fiscal policy tightening as opposed to US policy.   Switzerland is making strenuous efforts in the face of rising price of its currency.Central bank was forced Thursday to take the unusual decision to never enter a negative interest rates on bank deposits.    It imposes no tax to stem the flow of capital as investors turn to the Swiss franc due to the weakness of other currencies.

[leanonme]

The Ruble fell because in was manipulated downward. Not because of the price of oil or Russian economy. Or so I hear.