Category Archives: exchange rates

What’s a “Strong Dollar”?

I used to wonder about the use of this term a lot, at least in the context of government pronouncements. Here’s my answer. First, the use of the term in context. From Bloomberg:


Weak Dollar Boosts Growth Without Fueling Inflation (Update1)

By Matthew Benjamin and Vivien Lou Chen

Oct. 8 (Bloomberg) — Treasury Secretary Henry Paulson, whose signature appears on every new dollar bill, may find the weak currency with his name on it helps the U.S. economy more than the strong one he publicly endorses.

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Foreign Exchange Market Transactions and Reserves: Recent Statistics

There’s been a cornucopia of forex market information released in the past week, which I’m only now getting to. First, the BIS has released the preliminary results from its Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity, conducted in April of this year. The results are interesting, insofar as they confirm trends evident in the previous survey in 2004. Second, the IMF released its most recent tabulation of foreign exchange reserve holdings (COFER).

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