Corporate foreign exchange news

Published by Mark Smith-HalvorsenThere was a cautious tone to Bank of England governor Mervyn King's comments following the latest meeting of central bank chiefs in Basel.The meeting, in which central banking chiefs laid down rules for capital and liquidity requirements in the finance sector, caused shares to rally earlier this week after the group pursued a more lenient strategy than many traders had feared.But as the Wall Street Journal notes, investors may have been less enthusiastic about the meetings if they had looked at the underlying reasons for the policymakers' leniency.Speaking to the Treasury Committee after the meeting, Mervyn King was careful not to raise alarm, but explained that there was a recognition that many countries are still in an economically precarious situation.As such, policymakers agreed that reforms must be carried out over a long timeframe to avoid pulling some countries back into recession.In the UK, forex brokers and equity traders recognised the fragility of recovery yesterday as the latest Nationwide house price survey showed a further easing in property prices last month.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site.