The News Review:

- Risk control No 1 concern for China’s forex management
- FREX-Euro hits 2-mth high vs yen as concerns grow over QE
- FREX-Yen strengthens NZ dollar firm after rate cut
- Forex Market Update: AUD NZD and EUR Consolidate After Strong Gains
- World Bank proposes forex use to tide over recession
- FREX-Dollar rebounds on China exports slump

Risk control No 1 concern for China’s forex management
China Daily
“When managing the foreign exchange reserves China will stick to the principle of ‘safety liquidity and appreciation’” said Wen adding that China will also take the stability of the global financial market into consideration. China’s foreign exchange reserves hit a record $1. 95 trillion at the end of 2008 the largest in the world and far exceeding those of Japan the second-largest foreign exchange holder with $1.

FREX-Euro hits 2-mth high vs yen as concerns grow over QE
Reuters
The single currency pared earlier gains against the dollarand the Swiss franc but remained broadly supported by the SNB’saction to weaken the Swiss franc by buying euros and dollars onThursday with traders anticipating further such moves. The SNB said on Thursday it would buy foreign currencies andbonds — so called “quantitative easing” — as the country facesits worst recession in over three decades. And after a similar move by the Bank of England last weekmarkets are wondering who might be next. “People are starting to think a lot more about what QE meansfor currencies so far we’ve only had the Bank of England andthe SNB explicity engage in it and the currencies have done verybadly said Adarsh Sinha a currency strategist at BarclaysCapital.

FREX-Yen strengthens NZ dollar firm after rate cut
Reuters
The yen edged up after the data was released althoughtraders said the market’s view on the economy was unchanged. “The GDP data was a bit better than expected but it didn’thave much impact on the forex market” Kubo said. But the yen gathered steam as the session wore on. The dollar fell as low as 95. 95 yen on trading platform EBSits weakest in two weeks and was down 1.

Forex Market Update: AUD NZD and EUR Consolidate After Strong Gains
Daily FX
The SNB intervention to weaken the CHF and the strong gains in U. stocks both contributed to fresh demand in carry trades and renewed risk appetite that weighed on the USD JPY and CHF. USD-JPY which had rallied in early NY to highs of 98.
Related from Homegrownrecords: General Electric Company Business Update Call Transcript

World Bank proposes forex use to tide over recession
Indian Express
“In the present scenario when we are witnessing deflationary trends in the domestic economy using forex reserves to trigger demand and growth will be a good step. We can also overrule the possibility of rise in Inflation due to this money supply in this environment. In short-term the country will see some depletion in reserves but in the long-term as the economies around the world revive India will be poised to export more and generate more forex revenues” Lin said at a press conference here on Friday. “The downturn is the cause of excess capacity in the system developing countries were innocent but will be hurt seriously and poverty unemployment will be big issues” he said.

FREX-Dollar rebounds on China exports slump
Reuters
A fall in European equities also helped support the dollarwhich had started the Asian session on the back foot following arally in U. shares on Tuesday on news that Citigroup wasprofitable in the first two months of 2009 [ID:nN10541492]. But investor sentiment remained jittery with worries aboutthe world economy and banking sector never far from the surface.