German Economics Minister Confirms Federal Reserve Active in FX Markets

Friday, May 28, 2010

As it needs the German Economics Minister to confirm what everybody had suspected anyway, I wonder if it will need a US counterpart to say the same about the ECB.
According to a Dow Jones report,

The U.S. Federal Reserve is also active in currency markets, German Economics Minister Rainer Bruederle said Friday.
His comments come on the heels of remarks made by his Swiss counterpart who said that the Swiss National Bank purchased euros to buttress the single currency.
"It is a regular procedure of central banks," to intervene in currency markets, Bruederle said. "It is not a secret," that central banks have a foreign exchange rate target, he added.
Bruederle said "eruptive" movements have to be avoided. He previously said that China holds 25 percent of its foreign exchange reserves in euros.
Recalling a central bank survey from 2006 it would be illogical for the Fed
not to intervene in the most important of American goods, that is Federal Reserve Notes (FRN.)
This game is tilted. Or do you have a printing press in the backroom?

0 comments

Wikinvest Wire