The News Review:
- Brazil central bank chief warns of forex euphoria
- Pratice Trading is Crucial in Forex
- Forex News and Events:
- Exchange Stabilization Fund Recounts History of Gold Manipulation
- Proposed tax on forex trades to raise $50bn aid
- Japan’s Yosano says no forex intervention: reports
- Forex: CBN returns to wholesale system
Brazil central bank chief warns of forex euphoria
Reuters
The Brazilian real BRBY initially weakened in the wake ofMeirelles’ comments but eventually reversed course andstrengthened propped up by a steady flow of dollars to thelocal market. “Market participants companies in the past hadsignificant losses because of excessive euphoria because theybet on trends in an exaggerated way” Meirelles told reporterswhen questioned about dollar inflows to Brazil and recent gainsin the currency.
Related from Telefenua: Bank police warn of phone scam
Pratice Trading is Crucial in Forex
Learning Markets
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Forex News and Events:
Forex Hound
90 was seen thanks to comments from Japanese Finance Minister Yosano who said that Japan is ?not currently thinking about Forex intervention? but a lack of follow through saw it recover to 94. The BoJ Policy Board ended its two-day monetary policy meeting with a unanimous vote to leave the uncollateralized overnight call rate at 0. 1% as widely expected. Separately the Bank decided to expand the range of eligible collateral to include cross-border instruments namely bonds issued by the governments of the US UK Germany and France.
Exchange Stabilization Fund Recounts History of Gold Manipulation
Seeking Alpha
Treasury’s web site an [annotated] history of the Exchange Stabilization Fund or ESF. The document clearly establishes the fact of intervention by Treasury to adjust the FREX value of the U. This is not open to debate.
Proposed tax on forex trades to raise $50bn aid
guardian.co.uk
Amid fears that the global recession will lead to cuts in western aid budgets a task force set up by Gordon Brown will meet in Paris to discuss so-called “innovative financing mechanisms”. The prime minister is under pressure from a coalition of UK and international campaign groups to back a 0. 005% micro-tax on the $1 quadrillion ($1000 trillion) annual trade in foreign currencies.
Japan’s Yosano says no forex intervention: reports
MarketWatch
“We aren’t at all thinking about intervening in the foreign exchange markets at this point” Yosano was quoted as saying by Dow Jones Newswires adding that the government was looking into the matter. The yen continued its climb following the statements with the U. dollar hitting a fresh two-month low of 93.
Forex: CBN returns to wholesale system
The Punch
WDAS enables the CBN to sell foreign exchange through banks while with the RDAS companies and individuals can source their foreign exchange needs through the apex bank and their authorised dealers. Soludo said the apex bank would remove all restrictions imposed on the market in order to attain full liberalisation in the next three months. He said ?The MPC observed that the medium term outlook for the forex market was stable. Consequently the MPC decided to review the series of controls instituted in the last few months and over the next three months return to the fully liberalised regime that that we had before the recent controls. ?We believe that the premium between the parallel and official exchange rates will narrow significantly in the days ahead and we can sustain the changes over times. The CBN is also exploring the possibility of introducing futures and swaps in the foreign exchange market. ? The CBN boss added ?As a first set of measures towards the return to WDAS the committee decided to increase the net foreign exchange open position for banks from one to 2.