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Norway Has World's Best Currency: Strategist

CNBC
Wednesday, 25 Mar 2009 | 9:27 AM ET

The Norwegian kroner is "the best currency in the world" and certainly preferable to the US dollar, UK pound and other currencies where governments are practicing quantitative easing, David Bloom, global head of foreign exchange at HSBC, told CNBC Wednesday.

Norway has a budget surplus, foreign assets, a petroleum fund and automatic stabilizers and "you couldn't dream up something better in this environment," Bloom said.

The world of currencies is split into the quantitative easing (QE) countries and those not printing "pieces of paper," he told "Squawk Box Europe."

Rally Will End after the G20
"We're going to have deteriorating economies after the G20 with no policy reaction and this is going to be the doldrums for the next six months or so," David Bloom from HSBC said Wednesday. Countries that are not using quantitative easing will be the ones that perform very well, he added.

"It's the ones that aren't (printing money) that will do extremely well, like Norway, Australia and the euro (zone)," Bloom said.

"If a country is printing more pieces of paper I can't advise people to buy that currency, it's not a hard currency. I don't believe the idea that QE will create a recovery."

"My real concern is that there is no fire power left," Bloom said. "Policymakers have to say please be patient but markets don't want to be patient."

"After G20 there will be no policy reaction, this is going to be the doldrums, no wind, no motors, we are stuck in the middle of the ocean like it's the Rime of the Ancient Mariner."

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