Exchange rates: a race to the bottom

Feb. 24, 2016: a currency exchange office in London: the British pound continued to fall against the dollar over concerns on the economy and Brexit fears (source: dpa)
Feb. 24, 2016: a currency exchange office in London: the British pound continued to fall against the dollar over concerns on the economy and Brexit fears (source: dpa)

Trying to predict how exchange rates will evolve during the rest of the year is a futile exercise. For different reasons, the world’s major central banks are all doing their best to weaken their own currencies.

Summary

<i>In the United States, the Federal Reserve is having second thoughts about resetting its monetary stance to neutral, fearing that anything less than reckless Keynesianism might choke an underperforming economy. The European Central Bank is making no secret that its policy is to kick the can down the road, propping up banks’ overloaded balance sheets and mountainous piles of public debt. Meanwhile, the Chinese hope to cushion their slowing economy by l...

Not a subscriber yet?

Subscribe now and get the latest in-depth geopolitical analysis and forecasts from GIS’s unrivaled cadre of experts.

Learn more about our subscription plans.

You can also buy this report for €8.99 Buy

Add your comment