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Thread: Currency Wars Heating Up

  1. #1

    Default Currency Wars Heating Up

    In times of economic stress countries are temped to devalue their currency to boost exports and attract foreign investment. But currencies are not a one way street trading partner can retaliate and start a race to the bottom or resort to protectionism. Japan just devalued the yen by more than 15% against the $ and the currency wars are heating up. Where will the Euro stand at the end of the year against the dollar? $1.50? Is Draghi about to move?

  2. #2
    Politics.ie Member seabhcan's Avatar
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    The ECB doesn't really have the organisational ability to influence the euro value vs other currencies. The best way they have of doing this is by stoking worries of 'eurozone crisis'. If that fades, the euro could easily go to 1.50/$2

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    Politics.ie Member dresden8's Avatar
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    Cheap holidays in Disney?

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    Currency wars: the battle lines explained

    Currency wars: the battle lines explained - FT.com

  5. #5

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    Quote Originally Posted by robut View Post
    Currency wars: the battle lines explained

    Currency wars: the battle lines explained - FT.com
    battle lines: "Developing countries are expected to voice objections to the monetary easing that has put downward pressure on currencies such as the dollar and sterling. Rich nations will probably respond by repeating long-held gripes about the undervalued currencies of Asian exporters."

    but what about vs $?

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    Amid talk of currency war, EU ministers debate currencies as G7 warns of disorderly movements

    Arriving Tuesday for a meeting of the 27 EU finance ministers, Irish Finance Minister Michael Noonan said there would be discussions about what might be discussed at the G-20 meeting. Several EU finance ministers, including those from France, Germany and Italy and Spain, will make the trip to Moscow. The EU will also be represented there.

    "I think all this debate about the relative value of currencies is going to be an issue at the G-20 but we're coming through a period where the concern was the volatility of the euro," Noonan said. "It's a bit soon to argue that it's too strong."

    Noonan said he wouldn't support any proposals that the ECB should intervene in the markets to get the value of the euro down.
    So if currency war does break out .. from a selfish perspective .. where does that leave Ireland in its wrecked state bobbing along on the good ship euro atop the currency sea??

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    Politics.ie Member dresden8's Avatar
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    Quote Originally Posted by robut View Post
    Amid talk of currency war, EU ministers debate currencies as G7 warns of disorderly movements
    Noonan said he wouldn't support any proposals that the ECB should intervene in the markets to get the value of the euro down.
    Noonan will do what he's fncking told.

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    Politics.ie Member gerhard dengler's Avatar
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    Quote Originally Posted by seabhcan View Post
    The ECB doesn't really have the organisational ability to influence the euro value vs other currencies. The best way they have of doing this is by stoking worries of 'eurozone crisis'. If that fades, the euro could easily go to 1.50/$2
    Currency war is the last thing that the EZ/ECB and Germany in particular, needs right now.

    Draghi Counts Cost of Saving Euro as Currency Rebounds - Bloomberg
    Politics.ie moderators should moderate instead.
    Welcome to Political Irish | Political Irish

  9. #9

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    Quote Originally Posted by gerhard dengler View Post
    Currency war is the last thing that the EZ/ECB and Germany in particular, needs right now.

    Draghi Counts Cost of Saving Euro as Currency Rebounds - Bloomberg
    hollandaise's idea to control the currency exchange is mad though.
    Last edited by YouKnowWhatIMeanLike; 14th February 2013 at 12:30 AM.

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    ECB Enters Currency Wars Backward As Weidmann Talks Euro... Up? | Zero Hedge

    During a speech this morning ( 11/02/2013 ), the ECB's Weidmann made it clear that the optics of EUR strength are critical to the union's survival (and Germany's balance of power vs the French):

    *WEIDMANN SAYS ECB CANNOT SOLVE CRISIS, GOVERNMENTS MUST
    *WEIDMANN: DEVALUATION HISTORICALLY DOESN'T HELP COMPETITIVENESS
    *WEIDMANN: IF MANY NATIONS DEPRESS FX, CAN ONLY END IN FAILURE
    *ECB'S WEIDMANN SAYS EURO ISN'T SERIOUSLY OVERVALUED
    *WEIDMANN WARNS POLICY MAKERS AGAINST TRYING TO WEAKEN THE EURO

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