* Business Quick Take Nov 1, 2009
It is very difficult to maintain fixed exchange rates in a very volatile economy for a very long period of time, which is why the world has abandoned the fixed exchange rate system, he said in a speech in Shanghai yesterday. He said the US economy was still nowhere near the end of its recession and the labor market was in very bad shape. (Taipei Times, Taiwan -- Business)
Yuan in the ascendancy May 29, 2009
For this purpose he proposed to modify the IMF's Special Drawing Right (SDR), a synthetic reserve asset and unit of account created by international agreement in 1969 to supplement official reserves of member countries and to support the Bretton Woods fixed exchange rate system. A brief history of the SDR SDRs were created in light of serious concern at the time that a shortage of gold and gold-linked US dollars (or dollar-denominated financial instruments) to finance international trade would... (Asia Times Online)
Public Information Notice: IMF Executive Board Concludes 2009 Article IV Consultation with Belize May 15, 2009
Against the backdrop of the global downturn, they noted that Belize, as a small, open economy with a fixed exchange rate system, a low level of reserves, and a high debt level, remains vulnerable. Looking ahead, Directors welcomed the authorities aim to pursue a medium-term economic strategy centered on sustained fiscal consolidation, while strengthening their international reserve position and oversight of the financial sector. (IMF News)
China may have bigger say in restructured IMF May 14, 2009
" Currently, some major decisions at the IMF need 85 percent of the vote but the US' 17 percent vote gives it effective veto power. IMF Managing Director Dominique Strauss-Kahn said last month that he would support reducing the majority needed to make major decisions at the fund from 85 percent, noting that the US veto power makes some decisions difficult to make. The Group of 20 leaders agreed to triple the IMF's funds to $750 billion from $250 billion in the April summit held in London so it... (Xinhuanet, China)
Should we follow the yellow brick road? Apr 6, 2009
For starters, it would require a return to a fixed exchange rate system. Not many countries in the world would be willing to make a switch. (India Times)
UN PANEL TOUTS NEW GLOBAL CURRENCY... Mar 27, 2009
" It said the funds could come through the issuance of SDRs approved by the IMF board in 1997. SDRs are an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries and support the Bretton Woods fixed exchange rate system. They are allocated to member countries in proportion to their IMF quotas. Copyright AFP 2008, AFP stories and photos shall not be published, broadcast, rewritten for broadcast or publication or redistributed... (The Drudge Report)
S&P: Joining euro would give Baltics credit boost Mar 5, 2009
The current rules mean that all applicant countries must get their economies into shape, most notably the public finances, and steer their economies through the so-called Exchange Rate Mechanism II, a fixed exchange rate system, for two years prior to euro entry. For the moment, Gill said the pegs against the euro will likely hold, especially given the political commitment to maintain the currency rates, but that could all change were the economies to contract for two or more years. (International Herald Tribune -- Health)
Protectionisms dangers Mar 4, 2009
"At times of global economic crisis, enemy number one is isolationism. "Protectionism can only exacerbate the situation, as it did after the Great Wall Street Crash of 1929," he adds. But a former US Treasury official warns that, for domestic political reasons, Mr Obama will have to back the Buy American clause to ensure his stimulus bill is passed by Congress. Domino effect In the l930s, tariffs soared to unprecedented levels as countries sought to protect their domestic markets. In particular,... (BBC News -- Americas)
