Reserves

G7 voice concern on yen's rise, action likely

The G7 economies on Monday indicated that they could act on the yen's appreciation after the Nikkei 225 index of leading shares in Tokyo slumped to a 26-year low on fears a strong currency would cripple the country's exporters.

Mboweni: reserve growth must go on

The central bank does not regard the current level of foreign exchange reserves as excessive, given the economy's high current-account deficit, said Tito Mboweni, the governor of the South African Reserve Bank.

Dollar pegs should be reconsidered: King

Mervyn King, the governor of the Bank of England, warned on Wednesday that it would become "increasingly important" for countries to discuss abandoning their dollar pegs in the coming years.

Official sector shunning US mortgage agency debt

Despite the implicit government guarantee being made explicit last week, official institutions seem keen to sell paper issued by Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that insure half of the US's home loans.

Dollar depreciation reflects value: IMF's Lipsky

The dollar is now the closest to its medium-term equilibrium value it has been in a decade and is set to remain the global reserve currency, said John Lipsky, the first deputy managing director of the International Monetary Fund.

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