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November 28, 2005

China
China still pegs to the dollar …

And it intervenes in a big way in both the spot and the forward market.  But it doesn't manipulate its currency.  At least not technically.   The US Treasury - in a widely telegraphed move - decided …

December 10, 2006

Financial Markets
Are the world’s oil exporters shifting away from the dollar?

The FT says so, drawing on work that from the Bank of International Settlements.I like a good petrodollar story -- and a good central bank diversification story -- as much as the next guy.   A lot mo…

bis_monetary_deposits

December 13, 2006

Economics
Image, reality and the global flow of funds …

Most participants in US financial markets -- I suspect -- tend to think of the US market as a key global hub, with US financial markets serving helping to match the world's savings with the world's m…

image001

January 30, 2007

Financial Markets
Hey big spender (or why conservation is perhaps a bit more than just a personal virtue) ….

In the past, I have noted that oil exporters saved rather than spent the windfall from the surge in oil prices.    The IMF calculated that the average oil producer in the Middle East “spent” 30% and …

oil_price_1302007

February 1, 2007

Monetary Policy
The People’s Investment Company - the early reports

Market News International reports that China is set to create a new investment company – called the State Foreign Exchange Investment Company.  It will supposedly by run by someone from the Finance M…