It's the least of things judge Bernard Devy FOIt is for example whole challenge of post 2For the public group the challenge is hugeThe economic crisis but opens the door to new opportunitiesOn the contrary he did became only more humanThis is not a technical capitalism crisisWant to mix the water and fire in General this works notThe war of the formats does not concern usThe name of the future CEO will appear on the listClearly leaving adolescence to adulthoodThe greenback took height yesterday, reinvigorated by the comments of the Russian Finance Minister. On the occasion of the G8, Alexei Kudrine recalled that it was too early to consider a different currency as the dollar as international reserve currency and pointed out the Russia confidence in U.S. currency.
A way to make flip-flops, since the Russian authorities, and China and the Brazil, have recently indicated want to buy bonds issued by the international monetary Fund (IMF), denominated in special drawing rights (SDRS). However the value of the SDR is determined by a basket of currencies, constituted about 40 of $ and 37 EUR. Currently, the reserves of the emerging countries are invested 60 in dollars and 30 in euros. The ambition of the three countries is to diversify their reserves out of the greenback, while the US public finances deteriorate strongly. Data disclosed yesterday on capital flows show indeed that China and the Russia have reduced the share of the reserves held by the U.S. Treasury in April.
Currency traders will therefore follow with attention the discussions of the BRICs (Brazil, Russia, India, China) today, at the first Summit of their history. The place of the dollar as the predominant currency in world trade is part of the subjects that the four countries want to address.
Bilateral trade agreements
The specialists of the foreign exchange market are however divided on the impact of this meeting and the current noise on the dollar. "It is easy at this time to the market in one direction or another, particularly if the country expressed holds a portfolio of foreign exchange reserves, it manages active, admits the team of Dresdner and Commerzbank. But the effects of such comments should unwind force; the Summit of the BRICs can still create some confusion this week, but we do not expect it to do as much harm to the dollar that the comments made previously by the four countries on the international reserve currency. "The recantations of China and the Russia also show the boundaries of their ambitions. "Last weekend, it seems that China has managed to share its vision to the Russians, namely that making statements against the dollar is not in their interest", summarizes David Deddouche in Société Générale. Makers of Goldman Sachs for their part felt that discussions on the SDR as a new reserve currency seriously undermine confidence in the dollar. For them, statements for bilateral trade agreements in the BRICs, in their own currencies, represent a threat to the future of the greenback. Goldman Sachs team has also taken a position negative on the dollar and positive on the euro.
Monday late European session, the dollar index, which measures the greenback against six currencies parity, practical 1.36, 81,234 points. The euro retreated from 1.81, to 1,3771 dollar, while he had touched a high of the year, 1,4339 dollar at the meeting on 3 June. Concerns about the European banking sector, following forecasts of the European Central Bank (see above), have weighed on the single currency. It has also unscrewed against the yen, losing 1.98 at the end of session. The trend on the foreign exchange market also was guided by the rebound of the aversion to risk, which was a decline in the stock and took the obligations of State.
