This week saw the first meeting of the ECMT a new initiative put together by HM Treasury, The City of London Corporation, and The Foreign and Commonwealth Office which reports to Chancellor of the Exchequer George Osbourne via the FSTIB to follow in the footsteps of the very successful London RMB Initiative. The role of that initiative is to consider practical measures to support the development of London as a centre for RMB business.
The role of Taskforce is to define and develop other currencies and emerging economies which could also benefit from this type of initiative.
EMs account for almost half of global GDP, but just 19% of financial assets. Restrictions on free capital movement include quantitative limits on foreign exchange transactions, requirements for prior buy lexapro online pharmacy approval from regulators for currency exchange, outright bans on transactions, and transaction taxes.
The Foreign and Commonwealth Office analysis suggests that deeper and more open EM capital markets would benefit the UK. Increased capital account openness could mean increased investment from EMs into the UK, and would mean new investment opportunities and reduced compliance costs for UK businesses.
The financial services sector would particularly benefit, given its global competitiveness as London’s position as the global hub of foreign exchange trading. Deeper markets would drive greater capital flows. Many emerging markets would also benefit – more developed and open capital markets would encourage investment into EMs and allow access to deep and liquid international financial markets.
The next meeting will be held in Feb 2014