RR Phantom
Location : Wasted Space Job/hobbies : Cayman Islands Actuary
| Subject: Turning point in currency wars Thu Mar 22, 2012 3:58 am | |
| A counteroffensive of sorts may be underway this year in what has seemed like a one-sided "global currency war" as developing economies slow, Western money-printing pauses and the heat comes out of pumped-up emerging market currencies.
The three-year-old "war", as Brazil dubs the devaluationist policies of developed nations seeking relief from home-grown credit crunches, may well just come full circle and burn itself out as a result.
But the reverse course of emerging currency depreciation carries its own significant risks, from skewing investment decisions to aggravating trade diplomacy.
What's more, it's Japan's success this year in finally weakening its supercharged yen, by fresh rounds of money-printing from its central bank, which may prove pivotal by disturbing the delicate balance in Asia.
Read more: http://www.smh.com.au/business/markets/turning-point-in-currency-wars-20120322-1vl9k.html#ixzz1ppXvHa75
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