Friday, January 4, 2013

British pound as a new reserve currency

Analysts say the SNB has already bought $80bn of EMU bonds, enough to cover half the budget deficits of Euroland over the last year. It has been acting essentially as a conduit for capital flight from Italy to Germany.
It has since branched out, allegedly into Aussies, Loonies (Canada), Scandies, Won?, Real? but above all pounds. "There aren’t many places to go in this ‘ugly contest’ if you don’t like the euro, dollar, or yen," said David Bloom, currency chief at HSBC.
--http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100022037/switzerland-and-britain-are-now-at-currency-war/

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