He said it could increase instability and currency speculation, and greater democratic accountability was needed instead, as well as the break-up of the big banks.
Repeated tirades by Malaysia's prime minister, Mahathir Mohamad, against the evils of currency speculation have fuelled fears of the imposition of capital controls, and hence led to sales of the currency, the ringgit.
Anne Stevenson-Yang of J Capital Research in Beijing, in one of her November e-mail alerts, suggests that the uptick in exports may have been partly due to hot-money inflows caused by currency speculation.
FORBES: China's Recent Trade Statistics Have Been Artificially Inflated
There are limitations locally because of the measures and so the market is likely to migrate offshore to hedge its currency position to protect against dollar weakness for portfolio investments, currency speculation, and foreign trade.
The new measures make hedging more complex, but it also has an impact on currency speculation, something the government said it wanted to rein in as much as possible given the global weak dollar and its impact on Brazil.
They also invited speculation from currency traders placing self-fulfilling bets that the peg would not hold.
The restriction is designed to fend off speculation in the currency, bank officials say.
We have to fear that another round of quantitative easing will do no more than devalue the dollar as a paper currency and lead to more speculation in gold and other commodities.
How many entrepreneurs will invest in new food and energy sources when a currency is collapsing, investors are fleeing to speculation, and green wackos are blocking breakthroughs in nanotech and genetically modified food?
How many entrepreneurs will invest in new food and energy sources when a currency is collapsing, investors are fleeing to speculation, capital gains taxes are set to go up and green zealots are blocking breakthroughs in nanotech and genetically modified food?
Continuing strong growth and the positive outlook in local currency will, however, be hampered by uncurbed speculation in the Swiss franc.
FORBES: Record Sales at Swatch Group Despite Rising Swiss Franc
First, the country dodged the hedge fund speculation that set off a chain of currency crises across Asia in the late 1990s.
Instead its foreign-exchange reserves are building up because of strong capital inflows, driven by speculation that it will have to revalue its currency.
The Japanese yen has dipped to a 27-month low against the US dollar amid speculation that policymakers will take steps to weaken the currency.
The Japanese yen moved little on Monday against the dollar, trading at 78.03 late on Monday, on speculation the Bank of Japan may intervene in the currency markets to push the yen weaker.
This has also increased speculation that Greece may have to leave the 17-nation single currency zone.
BBC: Greece 'integral' to the eurozone, say European leaders
Greece could revert to the drachma -- the currency it had before entering the euro in 2001 -- but there is also speculation it could operate with a Greece-specific euro until a full switch can take place.
CNN: The trillion dollar question: Will Greece exit the euro?
Some observers have also suggested a tax on currency exchange, the so-called Tobin tax, to increase the cost of short-term speculation.
The week started with speculation that even Gordon Brown, the chancellor, is now entertaining doubts about membership of the single currency.
应用推荐