If investors believe that a currency is overvalued, they will engage in transactions – such as purchasing assets denominated in other currencies or selling short the domestic currency – that will pay off if the currency is devalued. These very transactions will make it difficult for the country to sustain its current exchange rate.
Before I get into the substance of my address this afternoon and before you start to go into the information overload stage that we all get… let me start with what I like to call the latest and the greatest, that is, the most important point I want to leave you with today, And it is this: Regulation of the credit union industry will benefit you and it will benefit the people you serve.