Bambaboo
04-22-2008, 02:50 PM
A friend sent this link to me and I thought I would share it, as it may hold some relevance to out investment.
This was put out by the IMF about the meeting with the Financial Committee on 4-12-08. At the bottom of page 3 it states this...
As US interest rates decline, countries that peg to the US dollar, particularly in Asia and the Middle East, import monetary ease at a time when domestic conditions do not warrant it, which pushes up inflation and may fuel asset overvaluation, leading to credit events down the road. The acceleration of the revaluation of the renminbi vis-à-vis the dollar is welcome but greater exchange rate flexibility is called for both in China and in a number of other emerging markets.
http://www.imf.org/External/spring/2008/imfc/statement/eng/oecd.pdf
Can the other emerging markets refer to the GCC and Iraq? :wink:
Bambaboo
This was put out by the IMF about the meeting with the Financial Committee on 4-12-08. At the bottom of page 3 it states this...
As US interest rates decline, countries that peg to the US dollar, particularly in Asia and the Middle East, import monetary ease at a time when domestic conditions do not warrant it, which pushes up inflation and may fuel asset overvaluation, leading to credit events down the road. The acceleration of the revaluation of the renminbi vis-à-vis the dollar is welcome but greater exchange rate flexibility is called for both in China and in a number of other emerging markets.
http://www.imf.org/External/spring/2008/imfc/statement/eng/oecd.pdf
Can the other emerging markets refer to the GCC and Iraq? :wink:
Bambaboo