The head of China’s central bank, the PBOC, says that China’s SDR proposal was a reply to the mistaken view that China’s high savings and trade surpluses were the causes of the financial crisis.
Mistaken view?
This is a dollar negative as it suggests any “framework” the G20 publishes coming out of Pittsburgh won’t be worth the recycled paper it’s printed on. The staus quo will prevail and the status quo is dollar-negative. ‘Cause China says so.
EUR/USD trades now at 1.4782.
