Currency market froze in anticipation of the summit G20 - 30 March 2009

Finansy30-03-2009 Foreign exchange market froze in anticipation of the summit G20 - March 30, 2009 Last week was fairly quiet for the major currency pairs, which then rose, then fell back again. The beginning of the week was negative for the dollar as the U.S. Treasury Department announced the program buying "bad" assets of $ 1 trillion to help the financial system, which "continues to work against the restoration of the economy." As analysts, stabilization in credit markets poses to the U.S. currency negative consequences. First, because interest rates near zero, and because of the huge infusion of dollar supply into the financial system by the Fed. In addition, the decline of the dollar contributed to the frequent talk about the fact that the dollar's role as a reserve currency has exhausted itself, and it is necessary to think about his replacement. Recall Russia within the framework of initiatives to London's G20 summit, requested the IMF to explore the possibility of creating a supra-national reserve currency, as well as mandatory to diversify the currency composition of reserves and operations of the National Bank and international financial institutions. The message is then supported by China and several other countries.