Intraday Market Thoughts

Archived IMT (2009.03.25)

by Ashraf Laidi
Mar 25, 2009 18:21

Both China and the US agree on expanding the components of the IMFs Special Drawing Right currency and including the yuan in the current weights beyond current weightings of USD, EUR and GBP. IMF Chief Strauss-Khan supports the legitimacy of discussing the idea of a new reserve currency based on SDR, while former Fed chief and current Obama Advisor Paul Volcker says moving towards a new reserve currency system of SDR is impractical. Most likely outcome is that SDR will be reweighted at next months IMF/World Bank meeting in Washington, which should appease current Chinese misgivings about the dollar. SEPARATELY, NOK droppe beyond my targetsstated earlier vs EUR and USD after Norge's downgrades of rates and inflation.


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