Home Central Banks: Money printing is good for the underlying currencies
FXStreet News

Central Banks: Money printing is good for the underlying currencies

Funding to counter coronavirus and its vast economic impact keeps the underlying currencies bid, contrary to logic in normal times, FXStreet’s analyst Yohay Elam reports.

Key quotes

“Central bank support is needed to fund trillions worth of programs that are crafted on the move. Without monetary backing, the ‘bond vigilantes’ would flee from bonds, choking countries with high borrowing costs.”

“Money printing is good for stabilizing the economy – and therefore for the underlying currencies as well.”

“Coronavirus is already triggering layoffs or unpaid leave and more layoffs are likely coming. With people out of jobs, there is a low risk of runaway inflation.”

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.