"Currency war" back to the negotiating table between the superpowers

[yota691]

"Currency war" back to the negotiating table between the superpowers

The ongoing currency war fueled Japan

3:22 p.m.

10

February

2013

Dominate " currency war "that fueled Japan and Europe began to worry Monday at the Eurogroup meeting where France wants to put the subject of the strong euro controversial, then, Friday and Saturday, in Moscow during the twentieth summit.

Meet and euro zone finance ministers on Monday in Brussels in their first meeting under the chairmanship of Dutchman Jeroen Dislblom who succeeds Jean-Claude Juncker, Prime Minister of Luxembourg.

This will be the main excellence of the European group, which are not expected to come out of any decision, not on assistance to Cyprus awaiting Cypriot presidential elections next Sunday, nor on the Banking Federation, which is still the subject of intense negotiations.

The attention is focused on the declared intention of the French Minister Pierre Moscovece to open "debate" about the level of the euro.

France demands that put the euro zone, "a policy of currency exchange" because of the concern of the high value of the common European currency which increases the cost of exports has been serving its consideration of the recent efforts to restore competitiveness.

But it seems that Germany and the European Central Bank wanted to eliminate in advance on this debate with the assertion that not overestimated the value of the euro.

The European Central Bank President Mario Draghi his part, seemed cautious Thursday on the return of growth in the euro zone, in a letter seen by a number of analysts to try to contain the rise in the value of the single currency.

A successful attempt because the exchange rate of the euro was currently about $ 1.33-a-days exceeded $ 1.37, a record price in 14 months.

It is expected that renewed debate at the end of the week in Moscow, where he will meet finance ministers and heads of central banks of the Group of Twenty, which includes the most prominent rich and emerging nations for the first time under the chairmanship of Russian.

And before the economic recovery falters achieved at the global level, Russia has set itself as a key task determine the "sources of growth" by new Group of Twenty summit in the fifth and sixth of September in St Petersburg.

But rich countries have المرغمة to contain or even absorb the debt, resorting more and more to the monetary weapon, any instrument currencies to support its economy.

After the United States, which used to pursue this policy, just persuaded Japan central bank to follow this approach, the shift is supposed to pay it from the spiral of decline that weaken economic activity.

But this transformation also resulted in a lower value of the yen against the satisfaction of Japanese industrialists but infuriated some countries, including Germany, which is one of the leading exporting countries in the world.

The problem lies in this context in the decisions of the lack of cooperation, in contrast to spiritual group twentieth supposed to coordinate global economic policy-making.

And that is a worry also neighboring South Korea, which increased its currency the "Won" automatically against the yen, as well as South American countries that regularly expresses its concern regarding U.S. monetary policy.

Note that the term "currency war" developed by Brazil in 2010.

This "war" than at the present time under the emerging countries and "seems to have reached in recent weeks to the developed world," the analysts pointed to "ING Anevstmant Management" in a note.

In fact fears the euro zone central bank refuses to issue currency to support the economy, find themselves isolated and pay the price at the level of growth.

Mario Draghi said, warning that he said did not reflect the policies pursued in other places of the world, "the consensus in the Group of Twenty then we would have to discuss that."

The comment comes after France's comments and also for Germany, which through its finance minister the Schaeuble Volgang "great concern" about the Japanese shift in what has become head of its central bank Jens Vaidman worried about a "race to reduce currency."