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18 Apr 2013
Forex Flash: G20 will encourage SK and Taiwan to limit intervention - DBS Group
FXstreet.com (Barcelona) - DBS Group analysts note that in addition to the focus on Japan, the G20 is expected to encourage other Asian countries to limit interventions to exceptional circumstance.
The talk, focused on nations like South Korea and Taiwan, is aimed at preventing disorderly market conditions, but also to report them shortly after they have taken place. They see that macro-prudential measures should also not be capital controls in disguise to counter currency appreciation pressures. Additionally, the G20 will emphasize that getting exchange rates right in Asia will be important in achieving the G20 Framework for Strong Sustainable and Balanced Growth. They write, “This current G20 meeting is similar to the one in April 2009, where G20 countries are once again seeking to find common ground in policies to help the world economy recover after a major crisis. Efforts here will determine if the green shoots get greener into the second half of this year.”
The talk, focused on nations like South Korea and Taiwan, is aimed at preventing disorderly market conditions, but also to report them shortly after they have taken place. They see that macro-prudential measures should also not be capital controls in disguise to counter currency appreciation pressures. Additionally, the G20 will emphasize that getting exchange rates right in Asia will be important in achieving the G20 Framework for Strong Sustainable and Balanced Growth. They write, “This current G20 meeting is similar to the one in April 2009, where G20 countries are once again seeking to find common ground in policies to help the world economy recover after a major crisis. Efforts here will determine if the green shoots get greener into the second half of this year.”