Tag Archives: dollar

United Nations experts to recommend move from dollar to a shared currency CCY

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UN Panel says world should ditch dollar

by Jeremy Gaunt

Mar 18 (Reuters) — A United Nations panel of experts

Who don’t understand how monetary systems work….

will recommend next week that the world move away from using the dollar as a reserve currency and adopt a shared basket of currencies instead, one of its members said on Wednesday.

Avinash Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.

“It is a good moment to move to a shared reserve currency,” he told the Reuters Funds Summit in Luxembourg.

He doesn’t either.

The United States, he said, was finding it hard to manage policy while remaining the reserve currency and the rest of world was also unhappy with the generally declining dollar.

Persaud said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.

More of the blind leading the blind.


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Strong $ AND strong yuan?

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Reminds me of the guy who loves money and wants to abolish taxes.

I do think the push is now for a stronger $, however, and we’ll see tomorrow if the Fed is on board.

As a friend of mine pointed out, a firming $ will likely trigger domestic and international portfolio reallocations back towards US equities.

Paulson Push for Stronger Yuan Weakened by Global M&A (Update3)

By Aaron Pan and Belinda CaoDec. 10 (Bloomberg)

As U.S. Treasury Secretary Henry Paulson visits China this week to push for faster appreciation of the yuan, the bigger issue may be what China is doing to strengthen the dollar.

Paulson’s fifth trip to the nation as Treasury Secretary has taken on added urgency as the U.S. grows more dependent on the dollar’s decline to lift exports and keep the economy out of recession. While the pace of the yuan’s gains tripled in the past 15 months, Chinese officials now plan to increase investments in America that may boost the U.S. currency instead.

“China at this stage needs to be looking to opportunities provided by the weakening U.S. dollar,” Ha Jiming, chief economist in Beijing at China International Capital Corp., the nation’s largest investment bank, said in an interview last week. “Very recently the government is becoming more interested in channeling money out of the country.”

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Paulson on the dollar

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Maybe he knows the fed won’t cut the fed funds rate….

Paulson says economy healthy

updated 10:33 p.m. ET, Fri., Dec. 7,2007
SOURCE: Reuters

Treasury Secretary Henry Paulson said on Friday Washington was following a strong dollar policy and indicated he expected it to rebound, emphasizing the U.S. economy’s long-term strength should help the currency.

But Paulson warned in a radio interview in Cape Town that some aspects of the U.S. subprime mortgage crisis would become worse before getting better.

Paulson is in South Africa partly for a weekend meeting of finance chiefs from the Group of 20 economies, some of whom have expressed concern that the dollar’s falling value is putting strain on their ability to export.

“We have very much a strong dollar policy … that’s in our nation’s interest. Our economy, like any other, goes through its ups and downs but I believe the U.S. economy will continue to grow and its long-term strength will be reflected in our currency markets,” Paulson told 567 Cape Talk radio.

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