Mirtchev, A. (2008, October 31). Foreign Exchange Volatility a Concern but “Old-Fashioned Currency Control” Not the Answer – A Sign of Upcoming Currency Wars? The New York Times.
The global economic and financial crisis has struck currency markets, yet Dr. Alexander Mirtchev, President of Krull Corp., believes that central banks in emerging markets should resist the temptation to restrict currency fluctuations via ad-hoc “quick-fix” measures. Despite the volatility in the foreign exchange markets and the negative impact on emerging market currencies, Mirtchev believes that foreign exchange restrictions will inevitably affect the investment inflows and outflows and hinder prospects for a sustainable balanced recovery. Tightening regulations and increasing restrictions could also have a long-term affect on already weak state balance sheets and negatively impact already low confidence levels in global financial markets thereby further undermining global financial security.