Swenani wrote:Waah... paper losses... GBP inaanguka kama panty ya Julie akiona Guka
Its because the Bank of England slashed rates to their all time low of 0.1% and launched 200 billion pounds of QE and this new money creation resulted in the pounds fall especially against the rising reserve currency of the USD despite the Fed printing trillions.
The Australian Dollar (AUD) has seen even more carnage than the Pound Sterling with the AUD/USD rate falling from 0.67 to a low of 0.55 (weakest since 2002)but closed on Friday at 0.58.Just like the Fed and Bank of England (lets just say all first world central banks) the Reserve Bank of Australia also cut rates for 0.5% to 0.25% and for the first time in Aussie history they launched QE
Its good to be the reserve currency where Fed can cut rates to 0% and unleash trillions of liquidity and the USD still risesagainst all other currencies.Though the USD strength is hurting the global economy especially emerging economies drowning in USD denominated debt.Some pundits postulate a meeting of the top global financial honchos of G7 and/or G20 will be arranged soon to plan a controlled devaluation of the USD just like the Plaza accord of September 1985
Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money