Bundesbank warms to capital controls in currency war debate
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
One of the Bundesbank's top officials on Thursday signalled a break in the Germany central bank's long-held opposition to the regulation of capital flows, saying limited use of controls could sometimes be appropriate.
In a guest column published in German financial daily Handelsblatt, board member Andreas Dombret said direct capital controls could be considered if other measures failed to work.
Having for decades rejected such controls, the Bundesbank is shifting its position, with an acceptance of some control if measures such as increasing reserves or making foreign exchange rates more flexible do not work.
Bundesbank President Jens Weidmann this week joined top central bankers in speaking out over the risk of competitive devaluations - countries encouraging their currencies to weaken in order to boost the attractiveness of home-grown products.
read more ...