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"ECB now engaged in open currency war even if it continues to deny it".
Because China wanted to look as though it had been bullied by America into moving towards an open currency – even though an open currency is what it really wants.
The Federal Reserve announced that it would open currency swap lines with the European Central Bank — in essence, printing dollars and exchanging them for euros to provide some liquidity for European money markets and banks.
The Bank of England did nothing to stem sterling's slide in 2008 and 2009, and did not face any international complaints.Smaller economies have the latitude to indulge in open currency manipulation.
People with ties to the People's Bank of China and the China Securities Regulatory Commission, requesting anonymity to avoid repercussions, said last week that Beijing was poised to cut barriers to moving foreign currency in and out of the country in a series of swift, small steps to open currency and capital markets further.
As we all know, currencies are highly leveragable–I know of one brokerage firm that lets retail investors open currency trading accounts with not 2-to-1 leverage or 50-to-1 leverage but 200-to-1 200-to-1 200-to-1leverage sothe currency is magnified into a big gain, or small is hoped.
Similar(53)
That is because when China began opening up its economy in the 1980s, it decided against opening its currency market to avoid the kind of money inflows and outflows that can blunt a central bank's ability to manage an economy.
Turkey's 80 banks have an estimated $18 billion in open foreign-currency positions.
It is now simpler, for example, for individuals to open foreign-currency bank accounts, and for travellers to get hold of foreign exchange.
Inflation has risen to 25%, and Iranian businesses are carrying cash to pay for transactions, due to difficulty opening foreign currency accounts with non-Iranian banks.
In opening foreign-currency accounts, buyers should realize that they may end up with less money than they started with.
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