This is not news, certainly. But I think it's important to have it in mind all the time. It's of utmost importance for both those who earn income in the US currency and those who live in countries forced to have their reserves in that currency too.
IMF's Rato-Dollar overvalued despite orderly slide
Sat Oct 20, 2007 7:25pm EDT
WASHINGTON (Reuters) - The dollar is overvalued in the medium-term even though it has depreciated in recent years, and markets are betting on the greenback to fall further, International Monetary Fund Managing Director Rodrigo Rato said on Saturday.
"In the medium term, the dollar is overvalued," he said at a news conference, adding "the markets are also betting right now that the dollar is overvalued."
He said the decline of the dollar, which has shed some 8 percent against the euro this year and hit a record low against a basket of major currencies, has been orderly and added that the exchange rate is set by markets.
"And in that respect, he said, "markets can behave differently sometimes than economic analysis".
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1 comment:
Keep on writing Santiago. You've cornered the intellectual blog market... and you've only posted a handful of articles :)
There are some of us who not only understand but appreciate this kind of information.
Excellent work.
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