The News Review:

- FOREX: Ringgit To Move In A Tight Range Next Week
- Forex reserves soar to $36b
- India becomes 4th largest financier of US current account deficit
- Thomas Cook will buy majority stake in India unit
- The Telegraph – Calcutta (Kolkata) | Sports | Briefs
- US credit woes getting uglier

FOREX: Ringgit To Move In A Tight Range Next Week
Bernama – Mar 8, 2008
Most Southeast Asian equities were battered on Friday as Wall Street retreated, spooked by the deteriorating US subprime market. Currency traders are targeting the ringgit to rise to 3. 15 to the US dollar next week as its growth momentum continues. While investors may remain jittery over negative developments of external factors, the ringgit’s upside is seen to remain intact based on strong economic fundamentals.

Forex reserves soar to $36b
Manila Standard Today – Mar 8, 2008
Mencias
The gross international reserves of the Bangko Sentral ng Pilipinas rose to a new record high of $36. 1 billion at the end of February, boosted by proceeds from government’s global bond issue, dollar purchases and income from abroad. “The significant increase in reserves was attributed mainly to the national government’s deposit of proceeds from the reopening of its global bonds as well as the BSP’s net [foreign exchange operations] and income from its investments abroad,” the central bank said in a statement. “These inflows were partly offset by payments of maturing foreign exchange obligations of the [national government] and the BSP. ”
The reserves, consisting of the central bank’s holdings of gold, dollars and other foreign currencies, were equivalent to over six times the country’s imports and more than thrice its short-term debt.

India becomes 4th largest financier of US current account deficit
Economic Times – Mar 8, 2008
It would
also look at whether the inflows are temporary and limits to effectiveness of
interventions, if the exchange rate movements are unidirectional. This was
indicated by RBI governor YV Reddy in a speech at
Paris. Typically, forex
reserves rise because the central bank buys dollars as it feels that foreign
inflows are too much for the economy to absorb. But last fortnight?s rise
was more because the dollar fell against major currencies, resulting in
non-dollar assets showing a higher number in dollar terms. ?The rise in foreign
exchange reserves is largely because of revaluation in non-dollar currency
reserves on account of the weakening dollar. Currencies such as euro, yen and
pound have been massively restated due to a weaker dollar,? said Ajay
Mahajan, president – financial institutions and markets, YES Bank. In recent years, India has
overtaken Taiwan and South Korea to become the largest holder of foreign
exchange reserves… Currencies such as euro, yen and
pound have been massively restated due to a weaker dollar,? said Ajay
Mahajan, president – financial institutions and markets, YES Bank. In recent years, India has
overtaken Taiwan and South Korea to become the largest holder of foreign
exchange reserves. China is by far the largest holder of forex reserves with
overseas assets of over $1,590 billion. Japan has traditionally been a large
holder of reserves which stand at around $1,008 billion. In Russia, sky-high oil
prices have helped to generate a cash horde of $491 billion. Forex reserves of India exceed
those of much larger economies such as South Korea because overseas funds are
pumping money in expectation of high
growth. The pace of reserve
accumulation has risen considerably, with reserves rising from $200 billion to
$300 billion in just 11 months.

Thomas Cook will buy majority stake in India unit
Daily News & Analysis – Mar 8, 2008
Fontenla-Novoa told reporters in a conference call: “We have identified India, Russia and China, probably in that order. ”
TCIL is the largest foreign exchange and second largest travel services company in India with 180 outlets in 40 cities. In the recent past, it acquired its biggest competitor in forex space, LKP Forex and also bought Travel Corporation of India. This has given immense boost to its business as well as market share. In forex services, TCIL commands more than half the market in India. Udayan Bose, chairman, TCIL, told DNA Money: “There will no major changes except in the shareholding pattern as of now. We are already growing very strongly at about 25% annually and our revenues for this financial year are on target… In the recent past, it acquired its biggest competitor in forex space, LKP Forex and also bought Travel Corporation of India. This has given immense boost to its business as well as market share. In forex services, TCIL commands more than half the market in India. Udayan Bose, chairman, TCIL, told DNA Money: “There will no major changes except in the shareholding pattern as of now. We are already growing very strongly at about 25% annually and our revenues for this financial year are on target. ” – with Bloomberg inputs.

The Telegraph – Calcutta (Kolkata) | Sports | Briefs
Calcutta Telegraph – Mar 8, 2008
Forex won by 27 runs. Kevinter Agro won by 5 wkts.

US credit woes getting uglier
NEWS.com.au – Mar 8, 2008
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Allco dropped 16 per cent to 52. 5 after major shareholder Allco Principal Partners said it was likely to go into voluntary administration after NAB failed to agree to a deal on margin loans. The Allco debacle has revived ugly memories for NAB of the forex scandal of 2004 and its disastrous Homeside foray into the US. Austock senior client adviser Michael Heffernan said margin calls would also have driven shares lower. "It’s like a vicious cycle – the more the market falls, the more people are going to get margin calls," he said.