Posts Tagged ‘Finance’

The Ascent of Money: A Financial History of The World

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IMF raises $320 billion in an effort to boost rescue firepower

April 19, 2012 Leave a comment

CFA Institute Financial NewsBrief

via IMF raises $320 billion in an effort to boost rescue firepower.

Timothy Geithner, U.S. treasury secretary, arrives for the start of a meeting of the Financial Stability Oversite Council in Washington April 3, 2012. REUTERS/Joshua Roberts

WASHINGTON | Thu Apr 19, 2012 3:40am EDT

(Reuters) – The International Monetary Fund said on Wednesday it had raised $320 billion so far in a bid to boost its firepower to deal with the euro zone debt crisis, with Poland and Switzerland joining the effort.

IMF Managing Director Christine Lagarde said she had received commitments of $34 billion on Wednesday, including $8 billion from Poland and “a substantial amount” from Switzerland.

“Ensuring that the Fund has sufficient resources to tackle crises and to promote global economic stability is in the interests of all our members,” she said in a statement.

Lagarde is hoping to secure at least $400 billion in commitments from finance officials from around the globe, who meet this week in Washington under the auspices of the Group of 20 nations and the IMF and World Bank.

The issue has taken on new urgency given increased borrowing costs in Spain and Italy that have reignited fears the euro zone crisis could flare again, and that the fallout could imperil the global economic recovery.

The United States has declined to provide fresh funds, saying it had done its part by ensuring dollar liquidity for banks in Europe, but it threw its weight behind the fundraising effort on Wednesday.

“We’re actually very supportive of that process and we’ll be very supportive of it this week,” U.S. Treasury Timothy Geithner said, avoiding past rhetoric about Europe needing to do more first to erect its own financial firewall.

Europe had already said it would provide about $200 billion to the IMF and Japan pledged $60 billion on Tuesday, becoming the first non-European nation to make a commitment.

Sweden said it would commit $10 billion and increase the amount to $14.7 billion later, while Denmark said it would give $7 billion. Norway pledged about $9.3 billion.

The effort to expand the IMF’s coffers is expected to dominate a meeting of G20 finance officials over dinner on Thursday and during the day on Friday. It will also be front and center at the IMF’s semi-annual session on Saturday.

Speaking at the Brookings Institution, Geithner said the commitments that had already flowed in should make it apparent to financial markets that the fund can bulk up quickly when necessary, a prospect that could ease crisis-related jitters.

He said it was a positive that the IMF could raise money quickly to “cushion if necessary the effects of European trauma” on the economies of other nations.


While Europe has won some praise for actions it has taken to build up its own defenses to keep its debt troubles contained, the IMF warned this week that the crisis was still the single greatest threat to the world economy.

“Solving the issues in Europe is not about a firewall, it’s about decisions that will be taken in Europe over a sustained period of time; and it’s European actions that will be decisive here as opposed to outside money,” Bank of Canada Governor Mark Carney told a news conference.

Carney, who also heads the global Financial Stability Board, said the G20 had yet to reach a consensus on how to proceed.

Like the United States, Canada has ruled out putting more money into the IMF. “Really, the Europeans need to step up to the plate much more than they have,” Canadian Finance Minister Jim Flaherty told reporters in Toronto.

But Canada seemed increasingly isolated.

In Mexico, Finance Minister Jose Antonio Meade sounded an optimistic note about a deal for more IMF money. He said commitments made by Japan, Sweden and Denmark were a sign of good progress – a potentially significant comment because Mexico, as this year’s G20 chair, has a chance to shape not only the agenda but the outcome of this week’s talks.

“It creates a good environment for the meeting,” Meade said of money pledges.

Germany’s finance minister, Wolfgang Schaeuble, predicted in an interview with Reuters on Tuesday that a deal would be reached this week.

A number of emerging market economies, including China, Russia and Brazil have been cautious about providing more money to the IMF. They want commitments the new resources will be accompanied by more voting power at the global lender.

In a report on global financial stability, the IMF offered advice for Europe: set a course for fiscal union to match the existing monetary union so that unified policy can be passed that works equally for members and makes it harder for financial markets to single out the weakest for attack.

“European authorities need to provide investors with a clear vision of where monetary union is going, because the answer to this is more and better Europe, not less Europe,” IMF financial counselor Jose Vinals said as he issued the report.

The IMF urged central supervision of European banks. It also suggested that the European Union should consider injecting public capital into banks – a tactic the United States employed in 2008 when its banking system was at risk of collapse.

(Additional reporting by Stella Dawson and Rachelle Younglai in Washington, Krista Hughes in Puerto Vallarta and Louise Egan in Ottawa; Editing by Dan Grebler and Peter Cooney)

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April 19, 2012 Leave a comment


via 人民币汇率形成市场化机制渐成气候.

国家外汇管理局日前公布 《2011年中国国际收支报告》。报告称,2011年人民币汇率双向波动增强人民币汇率单边升值预期被打破。预计2012年人民币汇率走势将形成有升有贬、双向波动的局面。
从推动人民币汇率改革的历史进程来看,为抑制国内的通货膨胀和进一步扩大出口,人民币汇率由原来的高估一下子贬值到8.6的水平,在这个汇率制度的引导下,我国迎来了以出口为导向的经济高速发展时期,但同时也积累了人民币升值的压力。直到2005年7月21日,中国人民银行正式宣布开始实行以市场供求为基础、参考一揽子货币进行调节、有管理的浮动汇率制度,人民币汇改正式启动。 2008年下半年至2010年6月受到金融危机的影响,人民币停止了升值走势。2010年6月19日,中国宣布将重新继续汇率改革,提高人民币汇率弹性,二次汇改启动。截至目前,人民币自汇改以来最大升值幅度已达到32%。
目前,不论是政府官员、学者专家还是市场都在告诉我们,人民币汇率已接近均衡水平,单边升值的预期已难以实现。其实,内在的逻辑也不难理解。近些年来,随着人民币的升值,我国货币被动地增发,流动性过剩既增加了通胀压力,又助长了股市、楼市泡沫;此外,人民币升值也使我国的出口企业生存环境日益恶化,国际竞争力不断下降,而在经济转型的过程中,出口不畅会使经济增长雪上加霜。虽然今年政府将经济增长目标下调到7.5%,但 “稳增长”仍然居首,毕竟没有经济增长就谈不上调结构,在当前内调经济结构、外部经济放缓、通胀泡沫犹存的背景下,适当贬值对中国是有利的。



April 19, 2012 Leave a comment


via 泰隆银行的成功经验.



















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