Forex & Currency News - OPEC and G20 Meetings highlight Foreign Exchange and Global Economic conditions.

November 19, 2007 - Forex Economic News

Meetings of economic powers highlighted the volatility in the currency markets and the effects felt worldwide as the Group of 20(G20) and OPEC leaders held meetings this weekend. The G20 meetings, held in South Africa and featuring central bank governors and finance ministers of economies that make up 90% of the worlds GDP, expressed concerns about the decline of the U.S. dollar value, risk of inflation, sky high oil prices, the fallout from the U.S. mortgage crisis and potential of a global economic slowdown. Western countries meanwhile continued their pressure on China to appreciate their currency faster to ease the burden felt by the plunging U.S. dollar. The G20 website.

In Saudi Arabia, OPEC countries also focused on the U.S. dollar as some members strongly criticized a weak dollar and called into question whether the OPEC nations would continue to fix their exchange rates or "pegging" it to the U.S. dollar. Rising inflationary risks in the region and the continued cutting of interest rates in the U.S. are causing OPEC countries such as United Arab Emirates to consider revaluing their currency and pegging it against a basket of global currencies. The OPEC website.

Tags: China, dollar woes, G20, Group of 20, OPEC, United Arab Emirates, Yuan, South Africa, Saudi Arabia, Foreign Exchange, USD, - - - - -Blog index