Jersey-based wealth managers, Ashburton, is flagging up the very real possibility that the current talk of currency wars means markets are moving to a world in which G10 exchange rates could be operated, once again, on a managed basis.
Tristan Hanson, Head of Asset Allocation, warns that the "recent aggressive policy shift of the Bank of Japan has further raised the stakes" of just such a currency war breaking out. Hanson points out that while the markets expected the latest G20 communique to officially criticise Japan for devaluing the yen, it surprisingly stated a commitment to "market-determined exchange rate systems" and the endorsement of monetary activism to support growth. However, Hanson adds that the fact that the value of the yen is under such scrutiny suggests the commitment to market-denominated exchange r...
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