22/03/2015
Central banks led to stimulate economic situation
The deterioration of the euro against the dollar, a new episode of currency war
The deterioration of the euro exchange rate against the dollar refers to the time a new "currency war" that revolve under the central banks that want to activate its crisis-hit by currency economies.
The quake, which hit the financial system in 2008 and the debt crisis in Europe between 2010 and 2012 and the situation in the monetary institutions on the front lines, and all of them worked as a guardian of the national currency, to put all the forces in the battle to ensure the best conditions for its state cash.
The specialist said to the economist in "Saxo Bank" Christopher Dimbik "We are already in the process in which monetary policy dissolved fiscal policy shop" because "I no longer have the financial governments' margins for maneuver."
After the 2008 crisis, "the central banks intervened because governments were forced to retreat very quickly because it has already spent more than its capacity," as the French news agency quoted yesterday for a specialist in debt affairs at BNP Paribas Patrick Jack.
Bond Director department in a box Shortlisted "El Stordza " Investment and the Swiss-based, Eric Vanraas, the situation, saying, "Everyone wants to push economic growth and resort to that to the good old ways, any weakening of the value of its currency to inflate its exports and achieve fast and secure an increase in the gross domestic product to."
Patrick Jack notes that "currency weapon rarely formally constitutes the object," and so the ECB has always said, "It does not have the goal of exchange."
This goal has not been formally drafted, "but the European Central Bank was thinking carefully about it to the extent that everyone is aware of it," as a specialist in at "Natixis" debt Affairs Rene Difosé said.
"The exchange is one of the most prominent of cranes around which to believe in the most positive monetary conditions for the advancement of the European economy."And rising US currency push "the US Federal Reserve" rate (the central bank) to express concern publicly last week on the lips of his boss Janet Whelan about the impact of the price of a "strong dollar," in US growth.
Since all the central banks are the same role through permanent correction procedures or through the use of exchange reserves has to keep its exchange rate within acceptable limits, the strategies that are inconsistent in most cases.Hence highlights the term "currency war" that is used by specialists.
In such a situation, you find the most central banks durability itself logically in a position of strength.
Dimbik explained that the most central banks today, ie the European Central Bank and the US Federal Reserve and the People's Bank of China and the Bank of Japan "take the lead in this war, while other banks late move and trying to limit the damage."The episode of the most influential of this viewpoint was a strong decline the Swiss National Bank in mid-January (January) for the policy, which was pursued by three years ago to prevent the Swiss franc from rising further against the euro price.
However, this case is not isolated, it was decided 24 central bank this year to reduce its benefits rates.In mid-March, the Central Bank of Serbia and the Central Bank of Korea and the Central Bank of Thailand has taken the same decision also followed suit Russia, as mentioned, an analyst at First World Foundation, Greg Smith.And releasing it on the ninth of March, historically a broad program to buy assets of up to $ 1140 billion euros by September 2016, the European Central Bank tipped the balance heavily on the dollar account.
He said an analyst with "FxPro" Foundation, Simon Smith, the continuous increase in the dollar exchange rate poses "dilemma" of the Federal Reserve, especially because it is "offensive to the ability of exporters (the Americans) to maintain their competitiveness."
He Vanraas "Since the month of August, the dollar exchange rate rose by 25 per cent against a basket exchange rate leading global currencies."
But he felt that the issue now comes from China."Since the yuan is linked to the price of the dollar, the Chinese central bank is the opposite of what has been done by the Swiss National Bank and lowers the value of its currency."
The initiative has been launched to compete again.
