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Deckard

Leaders Of G-8, G-5 Seek To Avoid `competitive Devaluations' Of Currencies

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http://www.bloomberg.com/apps/news?pid=206...id=alvEjK5TIhSg

July 9 (Bloomberg) -- Leaders of the world’s biggest developed and emerging nations agreed to avoid devaluing their currencies to promote their exports at the expense of others, according to a draft statement.

With officials from Brazil, India, China and Russia pushing consideration of alternatives to the dollar as the dominant reserve currency, the draft’s language on foreign exchange echoed an agreement at an April summit of the Group of 20.

The leaders agreed to “refrain from competitive devaluations of our currencies,†according to the draft of a statement to be released after their meeting today at the G-8 summit in L’Aquila, Italy. They also agreed to “promote a stable and well-functioning international monetary system.â€

Will this put a lid on volatility in FX markets in general, and £ in particular?

I doubt it, it sounds more like political fluff - hard to monitor, nearly impossible to enforce.

Edited by VoteWithYourFeet

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So how long before they kick off the competitive devaluations then?

Well, the way I see it £ and $ have already been devaluing for a while now, the big downmoves have already happened.

The Euro is waaaay too strong at the moment, and it's hurting the Eurozone economies like hell.

It's too late to make vague statements of intent now, the ECB is behind the curve as usual.

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If the Eurozone aren't happy why don't they just buy lots of those lovely pounds sterling to push the price up?

Because JCT and Axel W think having an overvalued currency is a sign of strenght and solidity... the fools just don't get it, and they couldn't care less about the PIIGS :rolleyes:

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FED and BoE just showing Trichet who's the daddy.

Too late now mate, you're f*cked! :lol:

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The smaller the country you are, the more important the exchange rate. The vast bulk of trade in the Eurozone or the dollar zone is within the zone itself.

yes, what's 82 billion between friends, eh?

http://news.moneycentral.msn.com/provider/...amp;id=10030337

Euro-zone exports shrank 21 percent to euro303 billion in the January to March period from euro385 billion a year earlier

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