Friday, May 01, 2009
With all the virtual ink spilt on the unfortunate situation in Mexico, Macro Man is pleased to be able to share some good news on public health with readers. It has been widely feared that nano-virus RU-a-WA-ke, otherwise known as "central bankers' flu", was reaching pandemic status.
It tragically claimed the entire executive board of the Swiss National Bank in mid-March, shortly after they embarked on a bold strategy of getting CHF into the system via the foreign exchange market.
And recently, it appeared that the Monetary Authority of Singapore had also been claimed by CB flu, prompting some discussion at IMF board level as to the propriety of declaring a global pandemic. Macro Man is therefore pleased to disclose this morning that the MAS is apparently not dead, and that the straight-line appreciation of the SGD after the MAS lowered the NEER basket parity does, apparently, have limits.
Or at least so we may gather by the price action pictured below, which is redolent of intervention by MAS through the usual local agent banks.
Macro Man trusts that readers will join him in wishing the MAS a speedy recovery. Now, about that "ursine flu" that seems to be ravaging the population of global bear colonies....