The International Monetary Fund said that record low US interest rates are funding global “carry trades” and the dollar is still overvalued as concerns mount that new financial imbalances are forming.
The gold rally resumed once more on Wednesday as prices rose more than 15 US dollars an ounce, spurred on by the US dollar’s seemingly endless decline, which continued as renewed optimism over the economic recovery led to dollar selling.
A study conducted by Chile's National Copper Commission (COCHILCO) reports that the country will most likely triple its gold production within the next five years.
The opening of new mines in Chile's north will take production from an annual level of 39 tons to nearly 110 tons, said the report.
This would make Chile one of the world’s 10 largest producers.
The latest economic data from China suggests that industrial production grew year on year at a level faster than expected. Retail sales also rose by more than analysts had predicted, while consumer prices continued to fall.
A new report from researchers at the International Monetary Fund sees at least three candidates that could eventually challenge the US dollar's role as the world's dominant reserve currency: the Euro, the Yen and the Chinese Yuan.
The Argentine Catholic Church called Wednesday on the government to improve social cohesion and bring peace to Argentines. At a conference headed by Cardinal Jorge Bergoglio to mark the 25th anniversary of a peace treaty between Argentina and Chile mediated by Pope John Paul II, the cardinal claimed the government has the obligation to resolve all its controversies by the use of peaceful methods.
Argentina’s cabinet chief Aníbal Fernández reported there were signs of a slow recovery in the economy, during his monthly address to the Congress. The usual soothsayers were wrong in their predictions, he said, claiming that GDP fell less abruptly in Argentina than in Peru, Chile or even Brazil.
World Bank President Robert Zoellick said that the dollar's role as a reserve currency is intact, but the United States cannot take it for granted and needs to tackle its huge fiscal deficit.
The Argentine government recently announced a plan to offer a debt swap to investors still holding US$20 billion (plus interest) in unpaid bonds from the country’s 2001 debt default.
The United Kingdom is the developed nation most at risk of losing its AAA sovereign credit rating because of the budget deficit and virtually no margin left in the event of another downturn, Fitch warned Tuesday.