web analytics

Foreign exchange fixing “as bad” as Libor

Written By: - Date published: 1:24 pm, February 10th, 2014 - 7 comments
Categories: economy - Tags:

Something that doesn’t seem to have hit the newspapers here, but may turn out to have been significantly affecting little ol’ NZ is a growing forex scandal, mainly in the UK (as the centre of forex trading).

The boss of the UK’s financial regulator has said the the allegations of rate-fixing are “every bit as bad” as the Libor scandal, that caused $US6bn in fines to be handed to banks – which probably still didn’t measure up to their cheating (2 US govt banks estimated they lost $3bn between them as a side-effect).

New Zealand has the 9th most traded currency in the world, despite our small size.  Why?  We’re a very open stable economy, with strict rules, few surprises, and we’re small and very manipulatable.

It’s known that very large banks can and have caused big shifts in our currency with very large trades – to their benefit.  So we’d seem a likely target for the collusion of forex traders that is being discovered here.

RBS and Barclays – 2 of the UK’s biggest banks – have already suspended a number of forex traders, so this will be another financial scandal worth following, as we find out who’s been making us all a little bit poorer…

7 comments on “Foreign exchange fixing “as bad” as Libor ”

  1. Poission 1

    Why? We’re a very open stable economy, with strict rules

    Most trades are done offshore and have very little regulation.The scandal is greater then a couple of banks it is endemic in the industry.


  2. Colonial Viper 2

    But…free markets!!! Free to be defrauded, that is.

  3. tricledrown 3

    While all the major trading blocks print and have peinted that’s why our dollars has been overvalued.
    John Key says its stupid but while he was at Merrill Lynch they were printing $38 dollars to every dollars on deposit pushing up currencies like the NZ dollar so that’s where Key made his money deliberately manipulating currencies
    On behalf of Merrill Lynch.

  4. tricledrown 5

    Dave time to post on power price fixing prof
    fessor Bertram from Waikato Univetsity.
    Said on RNZ that we are being ripped off by power companies.
    Falsly inflating their Asset values.

  5. Paul Campbell 6

    Oh, if only we had someone in charge of NZ who understands the foreign exchange market … then we could do something about the harm the exchange rate changes do to our economy

    • Poission 6.1

      Yes that is troublesome,as the forex market also requires prediction,and as a monkey with a dartboard (a random walk) would exceed the level of skill from said practitioner,where would we find this simian?

Recent Comments

Recent Posts

  • Fast-tracked Northland water project will accelerate economic recovery
    The Government has welcomed the decision to approve a new water storage reservoir in Northland, the first of a number of infrastructure projects earmarked for a speedy consenting process that aims to accelerate New Zealand’s economic recovery from Covid-19.  The Matawii Water Storage Reservoir will provide drinking water for Kaikohe, ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Tokelau Language Week reminds us to stay united and strong
    Staying strong in the face of challenges and being true to our heritage and languages are key to preserving our cultural identity and wellbeing, is the focus of the 2020 Tokelau Language Week. Minister for Pacific Peoples, Aupito William Sio, says this year’s theme, ‘Apoapo tau foe, i nā tāfea ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • NZ announces a third P-3 deployment in support of UN sanctions
    The Government has deployed a Royal New Zealand Air Force P-3K2 Orion (P-3) maritime patrol aircraft to support the implementation of United Nations Security Council (UNSC) resolutions imposing sanctions against North Korea, announced Minister of Foreign Affairs Winston Peters and Minister of Defence Ron Mark. “New Zealand has long supported ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Pacific trade and development agreement a reality
    Pacific regional trade and development agreement PACER Plus will enter into force in 60 days now that the required eight countries have ratified it. Trade and Export Growth Minister David Parker welcomed the announcement that the Cook Islands is the eighth nation to ratify this landmark agreement. “The agreement represents ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Securing a pipeline of teachers
    The Government is changing its approach to teacher recruitment as COVID-19 travel restrictions continue, by boosting a range of initiatives to get more Kiwis into teaching. “When we came into Government, we were faced with a teacher supply crisis,” Education Minister Chris Hipkins said. “Over the past three years, we ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Border exceptions for a small number of international students with visas
    The Government has established a new category that will allow 250 international PhD and postgraduate students to enter New Zealand and continue their studies, in the latest set of border exceptions. “The health, safety and wellbeing of people in New Zealand remains the Government’s top priority. Tight border restrictions remain ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • First COVID-19 vaccine purchase agreement signed
    The Government has signed an agreement to purchase 1.5 million COVID-19 vaccines – enough for 750,000 people – from Pfizer and BioNTech, subject to the vaccine successfully completing all clinical trials and passing regulatory approvals in New Zealand, say Research, Science and Innovation Minister Megan Woods and Health Minister Chris Hipkins. ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • International statement – End-to-end encryption and public safety
    We, the undersigned, support strong encryption, which plays a crucial role in protecting personal data, privacy, intellectual property, trade secrets and cyber security.  It also serves a vital purpose in repressive states to protect journalists, human rights defenders and other vulnerable people, as stated in the 2017 resolution of the ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Ministry of Defence Biodefence Assessment released
    The Ministry of Defence has today released a Defence Assessment examining Defence’s role across the spectrum of biological hazards and threats facing New Zealand. Biodefence: Preparing for a New Era of Biological Hazards and Threats looks at how the NZDF supports other agencies’ biodefence activities, and considers the context of ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020
    New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020 Hon David Parker’s response following Thomas Piketty and Esther Duflo. Good morning, good afternoon, and good evening, wherever in the world you might be. I first acknowledge the excellent thought provoking speeches of Thomas Piketty and Esther ...
    BeehiveBy beehive.govt.nz
    3 weeks ago