Posts Tagged ‘monetary policy’
Forex Market News – Anticipate Inflation Rate
Tuesday, June 30th, 2009I didn’t, partly because it was obvious and partly because this story is getting old and tiresome as a re-run of a TV sitcom from the seventies. This, even so, was the case yesterday as China’s Central Bank calmed the markets by declaring that their monetary reserve policy (and keep an eye on that word “monetary”) hasn’t changed.
What they didn’t say was that they back the sovereign Dollar and love the idea that 2 Trillion Dollars worth of their assets are invested in the Dollar, but we’ll return to this in a little bit.
Forex online junkies can recall not too long ago, when the BRIC nations (Brazil, Russia, India and China) met, there was a call by the Russian President, Dmitry Medvedev, to establish a global bond system through the IMF as an alternative to the Dollar. Afterward he “clarified” his point by saying “in addition to” the Dollar. (more…)
