Credit Markets Still Dysfunctional
The G20 summit to take place in London in April will be closely watched by interbank forex brokers. The global economy is in shambles, credit markets are still all but frozen, and the economies of the industrialized are failing. In the past economic issues could be addressed by the G7 members but emerging economies have altered the balance of power. China and India have dynamic economies but in the past have had little influence in global economic affairs will now be included in the G20 conference.
Dollar’s Reserve Status to be Discussed
Of particular interest to interbank forex brokers will be the discussions addressing the “restructuring” of the global financial system. The status of the US dollar as the global reserve currency will be discussed but it is doubtful that the dollar’s status will change any time in the near future. China has indicated it wants a major say in any discussion of reworking the world financial order.
European Leaders Call For Increased Oversight
Prior to the summit European leaders have called for increased global banking oversight and regulations tat would penalize banks for excessive risk taking. US president Obama has called for increased regulation f Wall Street. During the ongoing global recession interbank forex brokers have seen safe haven buying as dominant and the state of the global economy has severely limited opportunities in currency markets.
US to Push For US Style Stimulus Plans
The conference is expected to address the credit crisis which has crippled the global economy. Interbank forex markets have seen the credit crunch adversely affect currency markets and limit profit taking. The US is expected to push for governments to adopt US style stimulus policies to address the instability in the global banking sector including the interbank forex.
In is hoped that the G20 conference can set policies and institute mutual cooperation to get markets moving again and stimulate recovery. Interbank forex markets have a lot at stake and interbank forex brokers will be watching the summit very closely.
