Posted On: January 27, 2011
The French government is speaking out against the scourge of currency volatility.
Nicolas Sarkozy, France's president, said January 25
that the country will work to combat volatility in the capital markets while it holds the presidency of the Group of 20 countries.
A worry for France is the impact that sudden swings in commodity prices or currency values can have on the developing world. In recent months, the price of wheat and other grains have risen sharply in response to supply worries; the price spikes are putting pressure on citizens of poorer nations and helped foment the unrest in Tunisia that saw that country's leaders abdicate their positions.
Sarkozy conceded that France's proposals to regulate the commodity- and currency-derivatives markets more closely could face opposition. "We are going into this presidency with a lot of humility, and ambition at the same time," the Associated Press quoted him as saying.
Still, France's desire to limit market volatility reflects the threat that volatility poses to global stability - and the fact that private industry must prudentially manage its exposure to the markets.
Category: Industry News
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