Panama-America 5/1/13.
WORLD'S GOVERNMENTS WEAKEN CURRENCIES.
This will drive up the price of copper, gold, and silver.
Record profits for Petaquilla Minerals Ltd., Panama's largest exporter, in 2013!!
World's rich economies try to weaken currencies Effect. Developed countries fear that their products more expensive coins. (Bloomberg)
Emma Charlton / BLOOMBERG
"The authorities will consider a number of different parities cross and that could lead them to continue a verbal campaign. Very few central banks that currently carry on an active campaign. " "Some countries take steps to weaken their currencies," said David Blanchflower, a former senior official of the Bank of England.
The world's developed countries intensify efforts to weaken their currencies in search of success of Switzerland regarding the appreciation of the franc block to protect its economy.
Elected Prime Minister of Japan, Shinzo Abe, upped the ante in the fourth quarter of 2012, while his proposal that the central bank will take strong measures to boost growth and inflation triggered a 10% drop in the yen against the dollar. An index compiled Royal Bank of Canada shows that the level of "verbal intervention" in the G-10 has quadrupled since June 2010.
The rhetoric adds a new dimension to the exchange called wars that began when emerging market countries criticized Western monetary policy.
The governor of the Bank of England, Mervyn King, and his Canadian colleague Mark Carney spoke of fear that officials can use to manage exchange rates.
Finance Minister of Japan, Taro Aso, said countries "have no right to preach" to Japan for its currency policy.
"If you look at the extent to which central banks parities mentioned, it is clear that something is going to integrate the agenda, at least on a verbal level," said Adam Cole, global head of FX strategy at RBC London, Jan. 2 interview.
"There are strong indications that the parities play an important role in the decisions of central banks." RBC is Canada's largest bank by assets.
Developed countries fear that their products more expensive hard currency and affect exporters at a time when global growth to slow again.
The International Monetary Fund cut its forecast for 2013 on the world economy to its lowest level since 2009, while the Organization for Economic Cooperation and Development has warned of the risk of a "great" recession.
"There are many coins that are still at very high levels," said Neil Mellor, a currency strategist at Bank of New York Mellon Corp. in London.
AI
