«
»

2011: Year of the Currency Intervention

Email this post Print this post
By Barry Ritholtz - January 2nd, 2012, 11:00AM

European sovereign debt crisis and fears of a worldwide economic slowdown have led to Central banks around the world to try to “rescue their beleaguered currencies” in 2011. Selling dollar reserves, lowering interest rates, and enacted new regulations are all part of an unprecedented series of protectionist currency interventions in emerging markets.

>

Currency Intervention Anyone?
click for larger graph

>

Source:
Year of the Intervention
ERIN MCCARTHY AND PRABHA NATARAJAN
WSJ, DECEMBER 31, 2011  
http://online.wsj.com/article/SB10001424052970203899504577130803655761464.html

PERMALINK
Category: Bailouts, Federal Reserve.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

5 Responses to “2011: Year of the Currency Intervention”

  1. arogersb Says:
    January 2nd, 2012 at 3:14 pm

    You can add Chile’s USD 12 billion program as well
    http://www.marketwatch.com/story/chile-central-bank-to-end-intervention-dec-16-2011-12-09

  2. patfla Says:
    January 2nd, 2012 at 5:11 pm

    What? China appears neither in the graphic nor the article?

    That’s a rather large omission in that China’s currency, um, policy strong shapes the entire world economy.

    But then I’d note that the article is from the WSJ.

    Or are the Chinese seen as not ‘intervening’ in some strict sense – but then that would be an almost useless definition of intervention.

  3. ElSid Says:
    January 3rd, 2012 at 12:57 am

    Or, if someone were desperately trying NOT to get the best price when selling their silver — which some may argue is a currency — they could sell it in the middle of the night, when the Chinese and London markets are closed for holidays, and the Comex is their only co-conspirator:

    http://www.caseyresearch.com/gsd/sites/default/files/Silver%20-%201%20Minute_0.jpg

    Then get the CME to lay on four — count ‘em — four margin hikes, you could do what some might call “intervention”.

    I mean, if it’s not bad enough that they have all of these other currencies intervening against them, in the worldwide race for the bottom, having PM currencies rising from the dead at the same time is just a little too much.

  4. V Says:
    January 3rd, 2012 at 2:49 am

    Fed is still reinvesting in MBS is it not?

  5. 2011 – The Year in Tickers | Howard Lindzon Says:
    January 5th, 2012 at 3:36 pm

    [...] S&P $AAPL Apple $ES_F S&P Futures $EURUSD Euro/US Dollar (Makes sense since 2011 was the year of Currency Intervention) $NFLX Netflix $GOOG Google $QQQ Nasdaq 100 $CL_F Crude Oil $GLD Gold ETF $SLV Silver ETF $AMZN [...]

53 queries. 0.303 seconds.