Central banks need to “alert investors and markets of the risks of exaggeration in the formation of prices, which can lead to future corrections and create unnecessary volatility,” Meirelles said in an interview late yesterday in New York.
We should start to see more intervention from emerging market currencies. The dollar decline has been just as strong in the broad dollar index as the major index o the cost of goods has gone up for many of these exports. Central banks will try and limit the increase to protect their trade driven recoveries.
Intervention will be a major theme as we close the year. The global imbalance problem will not go away.
Intervention will be a major theme as we close the year. The global imbalance problem will not go away.
No comments:
Post a Comment