Mexico has strong enough currency reserves to withstand "jittery spirits" in currency markets, according to the Governor of the Bank of Mexico, Agustin Carstens. The chief Mexican banker went on to brush off fears of a "currency war" among China, Russia and America. Some have suggested America's sanctions against Russia will see other countries move to limit the use of the US dollar as the default currency for global business. Whatever the case emerging market currencies have had a volatile year on fears the U.S. Fed will taper its bond buying program. The story, running CNBC reports a new term, “The Fragile Five” to describe a group of emerging markets--Indonesia, South Africa, Brazil, Turkey and India—most exposed to the currency volatility. That Mexico's head central banker felt the need to talk out is telling in itself.
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