April 15th, 2009, Wednesday, 08:00
American billionaire George Soros says that the single European currency is well positioned at this time, while the U.S. dollar will lose in the end the status of reserve currency.
Euro offers an important advantage of countries that use the unique and there is no risk that any member of the monetary union to enter in a collapse, thinks George Soros. Regarding the dollar, the investor says he is still under huge pressure and could be replaced as the reserve currency of special drawing rights (SDRs) of the IMF - a basket of currencies that are based on the dollar, euro, Japanese yen and pound sterling, the international press writes.
In the United States, Soros says, that exist the risk of slow, on long-term, the economic growth which could add maintaining the inflation at high level. “I don’t expect that U.S. economy to recover in the third or fourth quarter, so I think we will assist to a slow of economy” he said.
Tags: Currency, dollar, Euro, george soros, Money
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April 13th, 2009, Monday, 07:49
East urgently needs to adopt the euro, even if it is not ready yet. International Monetary Fund sees in the rapid adoption of euro in the Eastern Europe countries, the best way to end the crisis which gave the dish and made many to use financial aid from the different institution.
The countries of Central and Eastern Europe hit by global financial crisis should give up their currencies and adopt the single currency even without being formal in the euro area, according to the International Monetary Fund (IMF), Financial Times writes.
The euro area should relax its rules for membership so that members of the European Union, in the former communist space, to join the monetary union as members without holding the positions in the governing board of the European Central Bank (ECB) say the fund officials.
“For the member countries of European Union entry in the euro area is a huge benefit by giving them the opportunity to solve problems in foreign currency debt, removing uncertainty and bringing back investor confidence”, is shown in a document of the IMF.
“Without this step attempts to eliminate problems related to foreign currency liabilities could involve a wave of financial restrictions in some countries”, states in the same document, whose publication could rekindle the debate on strategies to assist emerging economies in Europe.
Tags: crisis, Euro, invest, Money
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April 8th, 2009, Wednesday, 08:00
Manufacturers in the euro area crossed the worst months of the last 12 years, in conditions which appeared any sign conclusion on the economic recession, according to a study of the financial consulting company Mark writes Forex Pros.
Difficult business climate in which industry has faced the 16 Member States registered a worsening and signs of stabilization from the beginning of the year, unconfirmed subsequently, strengthened the arguments for new measures of central bank and governments to support confidence in the economy.
The index of managers for acquisitions (Purchasing Managers’ Index - PMI), had down to historic low of 33.5 points from 34.4 points in January. Economists are expected to 33.6 points. A value below 50 points of the PMI index, separate the expectations for growth of economic contracts.
Tags: decrease, economy, Euro, Money
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March 27th, 2009, Friday, 14:53
If until a few years ago, the generic name for the European currency was the ECU (European Currency Unit), lately (and the reality show this), the name that was imposed on the market, and in human consciousness is the Euro. ECU did not ever constitute any representation of a coin itself, but it was a monetary unit of measure, a generic name which fluctuated in currencies relation of European countries. But it was, certainly one of the important stages which led to the European single currency.
Euro has a symbol (€) inspired by Greek letter - epsilon, having as benchmark the cradle of the European civilization. Level graphical representation is closer to letter E, with two parallel lines in the middle, making reference to the first letter of the keyword: Europe.
The Maastricht Treaty has not chosen a name for future currency that should appear. It is true that the ECU has been mentioned many times, but a lack of harmony in its writing shows the provisional nature of this name. There were some objective reasons for choosing other name.
After several months of discussions, the European Council in Madrid, in December 1995 decided to name the future coins – Euro. It’s easy to pronounce in all languages and achieved the best results in all opinion polls.
The legal basis of the European currency was established by Article 106 of the Treaty, in which the European Commission retains the historical tradition of separation of the issue of Euro banknotes, which takes by the Central Bank, and the coins, which are responsible for the Ministries of Finance. Thus, the European Central Bank will issue and authorize the circulation of banknotes by central banks, and Member States shall issue coins.
Formally, from 1 January 1999, ECU has been replaced by Euro, at a parity of 1:1. The difference with the ECU is that, henceforth, any exchange of currencies between countries which have adopted the single currency is a fixed rate. Thus, the exchange rate for currencies included in the group will remain the same by definition.
Tags: Currency, Euro, European, market
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