The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

Policymakers: Too many Muppets for the week

Financial markets have been so discredited that any sensible solutions they might suggest are given short shrift by policymakers.

Almost too much has happened this week for me to fully comprehend. But if there is one common theme, it is that the lunatics appear to have taken over the asylum. So much so, that I may well have to institute a Muppet of the week prize.


In the UK, we have had the shocker(!) of unexpectedly high inflation data, a poorly received gilt auction and an apparent spat between the governor of the Bank of England and the prime minister over economic policy. In the US, Treasury secretary Timothy Geithner had barely even got his laurels on, let alone rested on them, when he spoilt it all by putting his foot firmly in his mouth; the result was a nice bout of FX volatility. Elsewhere, those fine bodies the IASB and FASB, which tell the world how they should account for things like options, have decided that they will need to change their mark-to-market requirements. It seems like only yesterday that the imposition of FAS133 and IAS39 caused carnage in the FX options markets and effectively prevented many companies from using the best tools to manage their FX risk – possibly the biggest financial scandal for many years.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree