Forex Blog: Currency Trading News & Analysis.

October 14th 2005

Refco crisis impacts USD

Refco, Inc., one of the world’s largest futures and currency brokerages, announced yesterday that it was forced to freeze customer withdrawals in order to continue to operate. Apparently, Refco holds significant margined USD positions on behalf of certain clients, which it funds through other accountholders’ unused funds. For unknown reasons, Refco suddenly became unable to sustain its margin positions and has placed a moratorium on withdrawals in order to remain liquid. According to certain forex traders, this placed acute pressure on the USD, which was already ‘overstretched.’ Bloomberg News reports:

Refco’s moratorium on withdrawals trapped its customers in holdings of dollar assets. At the same time, the firm’s own positions in dollar assets may be in trouble, and the combination made dollar trading more difficult.

Read More: Dollar Erases Gains as Traders Say Refco Freeze Forces Selling

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Investing & Trading, US Dollar | 1 Comment »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

One Review of “Refco crisis impacts USD”

  1. Rich Says:

    I noticed Refco still has their site up and running…

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2024 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.