The old codgers out there will know what I’m talking about …
Bloomberg columnist William Pesek says (in summary and bolding is mine):
- In September, the world will commemorate the 30th anniversary of the Plaza Accord (agreement to weaken the dollar and boost the yen)
- … it may be time for another round of currency talks
- Thirteen days after the Swiss National Bank let the franc soar, the Monetary Authority of Singapore unexpectedly eased policy and allowed the Singapore dollar to weaken
- The unilateral moves disrupted markets around the world … While the two banks’ moves may seem divergent, they’re battling the same problem: fallout from too much liquidity zooming around the globe
More at the article: Central Bankers, Unite!
–
A new Plaza Accord? That should make for an interesting Monday morning, if the last one was anything to go by