President of the German Bundesbank Jens Weidmann and other countries’ central bankers made statements during the week suggesting that negative interest rates or even asset purchases (Outright Monetary Transactions, or OMT) may be considered in upcoming monetary policy announcements. These…
India’s Imminent Foreign Exchange Volatility
India is likely to witness further volatility of the rupee in 2014 because of a host of internal and external factors, but the level of movement is going to be significantly lower than what the currency experienced in 2013. Companies…
Executives Should Lower Expectations for Western European Recovery
In its monthly policy meeting last week, the European Central Bank (ECB) lowered rates in response to deflationary risks and an appreciating euro. Weak governments and stagnant prices continue to jeopardize Europe’s single quarter of growth (0.3% in Q3), which…
Emerging Markets Opportunity Not Over
Recent reversals in capital flows caused large and sudden currency devaluations, faster than many emerging markets expected or could manage. As a result, many market commentators have called this end of the emerging markets opportunity. That statement couldn’t be further…
Paying for Flexibility: An Expert’s Take on Mitigating Currency Volatility
U.S.-based multinational corporations lost an estimated $50 billion as a result of currency volatility in 2012. As I referenced in my previous post, FSG projects currency volatility to increase in 2013. No longer can executives only rely on corporate treasury to…
Emerging Market Currency Volatility…It’s Getting “Real”
“Currencies should not be used as a tool of competitive devaluation. The world should not make the mistake that it has made in the past of using currencies as the tools of economic warfare.” - George Osborne, Britain’s Finance minister…