You are here
France approaches China for better way of rigging currency markets
France Woos China Over Currency Talks
By Peggy Hollinger and Chris Giles
Financial Times, London
Friday, October 1, 2010
http://www.ft.com/cms/s/0/69bcedee-cd8f-11df-9c82-00144feab49a.html
France and China have been in talks for the past year over whether there should be heightened co-ordination of exchange rates to promote stability of the international monetary system in the wake of the financial crisis.
The talks and their content have been kept secret, in an attempt to draw China into a discussion on global currency co-ordination, a subject that Beijing has been reluctant to countenance in the past.
In an ambitious move reminiscent of the currency accords of the 1980s, President Nicolas Sarkozy hopes to open a debate on the subject when France takes over the presidency of the G20 group of leading nations in November, according to people familiar with the matter.
... Dispatch continues below ...
Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource
Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.
For Prophecy's complete press release about its production plans, please visit:
http://www.prophecyresource.com/news_2010_may11.php
France has long advocated greater global economic governance. This summer, in a speech to French ambassadors on France's priorities for the G20, Mr Sarkozy called for a "new framework for discussing currency movements."
Mr Sarkozy is hoping to win Chinese support for a common approach during discussions with Hu Jintao in November, when the Chinese president visits Paris.
The move comes against the background of rising concern over exchange-rate interventions by a host of countries, most notably China but also Japan and South Korea, to prevent their currencies from rising against the dollar.
Though China has recently allowed the renminbi to appreciate modestly, the US House of Representatives passed a bill this week allowing the administration to impose duties on Chinese imports because of currency undervaluation.
The bill must pass the Senate and be approved by President Barack Obama before it becomes law, but its initial passage reflects growing anger in Congress. China, which is on track to surpass Japan this year as the world's second-largest economy, has resisted pressure for years, especially from the US, for substantial appreciation of its currency.
People familiar with the matter said France wanted to open the debate during the G20, rather than push a particular view, and was not proposing fixing rates. One priority would be to identify which institution should deal with global currency issues, the sources said.
Mr Sarkozy is planning to discuss currency co-ordination with Mr Obama when he next visits Washington. Germany too will be approached, and the subject may be raised when Mr Sarkozy meets Angela Merkel, German chancellor, in Deauville on France's Normandy coast this month.
The French and German leaders are set to meet Dmitry Medvedev, Russian president, to discuss joint security concerns and priorities for the G20.
* * *
Join GATA here:
The Silver Summit
Thursday-Friday, October 21-22, 2010
Davenport Hotel, Spokane, Washington
http://www.silversummit.com/
New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel
http://www.neworleansconference.com/redirect.php?page=index.html&source_...
* * *
Support GATA by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
http://gata.org/node/wallstreetjournal
Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
http://www.gata.org/node/16
Sona Resources Expects Positive Cash Flow from Blackdome,
Plans Aggressive Exploration of Elizabeth Gold Property
On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia.
Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013."
For complete information on Sona Resources Corp. please visit: www.SonaResources.com
