LOOSE CHANGE
LOOSE CHANGE
Major banks reportedly made a bundle last Thursday when the Spanish peseta devalued by 8 percent at the end of the trading day. Shandi Modi, managing director of currency research firm IDEA, says that early in the week, he heard that the Spanish Ministry of Finance told the central bank to stop its novel strategy of using currency options to support the peseta and, in fact, to reverse the positions--a signal to the canny that something was up. IDEA began predicting a devaluation. Modi says that
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