The two firms will work together to develop CLMITS services for China, Taiwan, Hong Kong and Malaysia. Credit Lyonnais will act as the primary market maker for all major forex transactions and to help promote CLMITS in Asia together with Cash on-line.

It would have been the UK’s first intervention on the currency markets since 1992 when sterling crashed out of the exchange rate mechanism after the government spent pounds 10bn trying to prop it up.

The ONS said the trade position was hit by a record 7.5 per cent jump in imports and a strong increase in imports from South-east Asia. Sterling kept export growth at 2.5 per cent with the biggest impact on non-EU trade.

“There were risks to the inflation outlook from continued buoyant domestic demand and a tight labour market,” the minutes said. “On the other hand, inflation could remain below target for a protracted period if sterling’s strength persisted, as the experience of the last few years suggested it clearly might.”

posted by Administrator at 4:21 am & filed under Currency markets |