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Watch out for the currency traps

Tuesday, 2 December, 2014

“We cannot go on with this euro. We must improve the European monetary policy and achieve equality of the dollar and euro interchange,” said former Italian Prime Minister Silvio Berlusconi at the Forza Italia party’s ‘No Tax Day’ rally in Milan on Saturday. “We must bring back our right to print money and establish monetary market exchange.”

Meanwhile, Tehran’s economy minister, Ali Tayyebnia, warned yesterday against “frenzied behavior” as Iranians dumped their rials. And in Venezuela, the dollar is now worth 1,700 percent more on the black market than the price the government charges those lucky enough to obtain it legally. Then, there’s the collapse of the ruble. This entire currency business is treacherous so it’s not surprising that when the Financial Times listed its Best books of 2014 at the weekend, the “trap” metaphor appeared prominently in the top titles reviewed.

Traps


Comments (1)

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  1. Henry Barth says:

    Until there is Rule of Law in China, they can forget becoming a
    reserve currency.

    You can’t have the same money without unified fiscal operations.
    That’s how poor states and rich states can use the same Buck.