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Showing posts from October 12, 2010

Currency wars: No armistice before Seoul G-20 summit

Business Times - 13 Oct 2010 Currency wars: No armistice before Seoul G-20 summit By LEON HADAR WASHINGTON CORRESPONDENT AFTER global financial leaders failed to diffuse a potential currency war over the weekend, the US dollar continued falling against some major world currencies on Monday. The decline in the US dollar reflected concerns over currency imbalances in the global economy, a problem that isn't expected to be resolved before the meeting of the world's 20 largest economies (G-20) in Seoul next month. So, never mind the rhetoric coming out of Washington about the need for multilateral cooperation. There isn't a lot of optimism that the United States and China, the two major players whose policies are responsible for the global currency imbalances, will be able to reach an agreement that could set the stage for a consensus over global strategy to handle the issue before the upcoming G-20 meeting. Such a strategy could take the form of the replay of the 1985 Plaza Ac