By JC Collins
There are increased discussions taking place between the G20 finance ministers and central bank governors that a decision should be made at this weekend’s meetings in Shanghai to depreciate the US dollar against select currencies. The meetings, which are being held on February 26th and 27th could very well signal the beginning of the exchange rate transition which we have been reviewing here on POM for the last two years.
As we have thoroughly covered, the increasing global deflation and slowing growth would act as the monetary and financial catalyst to spur the economic reforms and promote the required monetary policy changes to support the multilateral framework. This is exactly what is now taking place.