- Currency importance confers duty to play active role in reform of international monetary system
- Key short-term goal should be to end all barriers to capital flows in systemic countries
- Reserve accumulation is imperfection of current system, costly at national and global level
- Reserve buffers do not offer total protection
- For sake of international stability, need to put in place some form of global financial safety net
- Global crisis has reduced current account imbalance but not global imbalances
- More exchange rate flexibility needed to address global imbalances, but would not be sufficient
- Floating fx rates key to any multi-currency system
EUR/USD sits at 1.2303, for all intents and purposes unchanged on the day in lacklustre trade.
Cable at 1.4717 is back where it started, better than expected jobs report lending support. That said, market a little wary of pushing too far ahead given Mervyn King’s Mansion House speech tonight. Nearly home time, thank goodness.
