£ - Peso .... Latest

[KeithD]

Before China done anything they'd have to make an official trading currency, they can't presently do that as they would go into zero growth.

Russia is unlikely to back them as the vast majority of resources go to the West, and deal is $$$/€€€, and the Arabs will only deal in $$$.

If it was so easy to do, the €€€ is a trading currency and we'd be trading oil in €€€, but that would have an effect on every trading country on the planet.

If inflation goes up in the US, then usually the bank rate goes up as well making Bonds more valuable to other countries to support the debt, and so the $$$ would gain strength.

[somebody]

Before China done anything they'd have to make an official trading currency, they can't presently do that as they would go into zero growth.

Russia is unlikely to back them as the vast majority of resources go to the West, and deal is $$$/€€€, and the Arabs will only deal in $$$.

If it was so easy to do, the €€€ is a trading currency and we'd be trading oil in €€€, but that would have an effect on every trading country on the planet.

If inflation goes up in the US, then usually the bank rate goes up as well making Bonds more valuable to other countries to support the debt, and so the $$$ would gain strength.

Thats why the chinese and Bric are pushing longterm for IMF to sort out the SDR. That and work on the rembini and the real taking over from the Dollar in trade deals.

I asked about the Euro but the response i hear from people is that there is to many issues going on in the East and what we are seeing is only the tip of the iceberg as western european bank who own most of the eastern european ones are dumping all the problems over there and of course there is a big credit crunch issue going on there in many countries in the easten half of the region.

Kuwait now use a currency basket im told and thats what the compromise will most likely be a split between dollar,euro,yen and sterling.


Normally the bank rate would go up slowly if inflation rises as you want to stop it happening buit if you didn't to inflate your way out of to big a debt burden was the situation mentioned. So not atrractive to investors. Thats only to stop the UK/US defaulting.

I only go on what i hear from people who work in that business (most of it bores me sensless only ask and listen for news on peso/pound)

Im sure the sitaution will have changed by next week anyway

I keep reading the pinoy ecomony is having some bad results which may mean the peso drops in value. With exports and balance of trade badly effected, so a weaker currecny might help there. Bad for the People but good for our other halfs.