The News Review:
- Credit offtake declines, and so does forex kitty
- State Bank warns of direct intervention: Forex market
- Zimbabwe: Foreign Currency Liberalisation
- Pro Pipper Trading Launches New Forex Blog
- Forex reserves drop by USD 371 mn
Credit offtake declines, and so does forex kitty
Economic Times - May 10, 2008
While foreign exchange (forex) reserves dipped
$371 million in the latest week. According to figures
released by the Reserve Bank of India (RBI) in its weekly statistical supplement
(WSS), credit extended by commercial banks dipped Rs 11,964 crore during the
fortnight ended April 25, to touch Rs 23,29,850 crore. While food credit rose Rs
1,895 crore, non-food credit fell Rs 13,858
crore. This is very common in
the beginning of any fiscal, when borrowers tend to repay loans that banks often
lend in the previous year end, to show a bulge in their balance sheets.
State Bank warns of direct intervention: Forex market
Pakistan Dawn - May 10, 2008
com - DO NOT MODIFY ->. The warning was issued in a meeting between SBP Governor Dr Shamshad Akhtar and heads of commercial banks on Friday. “The central bank is in no mood to apply direct administrative control over the foreign exchange. However, if the market fails to discipline itself, the regulator will move to fix the situation,” she asserted. The fast depreciation of rupee against the US dollar developed into a serious national problem and desperation was visible as the authorities started blaming each other for this situation.
Zimbabwe: Foreign Currency Liberalisation
AllAfrica.com - May 10, 2008
But while a good number of dealers had deserted the streets, there is a group that has come up with strategies to stay in business and some had a fruitful first week. GA_googleFillSlot(”AllAfrica_Story_Inset”);Banks are giving cash in exchange for forex values of up to US$150 dollars while anything above that will be via transfers. Since the start of the forex reforms, there have been long queues of people willing to dispose of foreign currency in exchange for cash and most banks offering the best rates have been running out of cash while transactions took very long to complete. The varying rates offered by the various banks have kept the black market dealers in business as they are now intercepting foreign currency at lowly-paying banks on a given day and then taking it to those offering best rates. For instance on Monday one would intercept US$1 000 at Kingdom, who were buying at Z$160 million, by paying $162 million and then take the cash — using six colleagues at a maximum of US$150 each — to CBZ at $185 million. That translates to a "profit" of $23 billion in legal trading inside a few minutes… But while a good number of dealers had deserted the streets, there is a group that has come up with strategies to stay in business and some had a fruitful first week. GA_googleFillSlot(”AllAfrica_Story_Inset”);Banks are giving cash in exchange for forex values of up to US$150 dollars while anything above that will be via transfers. Since the start of the forex reforms, there have been long queues of people willing to dispose of foreign currency in exchange for cash and most banks offering the best rates have been running out of cash while transactions took very long to complete. The varying rates offered by the various banks have kept the black market dealers in business as they are now intercepting foreign currency at lowly-paying banks on a given day and then taking it to those offering best rates. For instance on Monday one would intercept US$1 000 at Kingdom, who were buying at Z$160 million, by paying $162 million and then take the cash — using six colleagues at a maximum of US$150 each — to CBZ at $185 million. That translates to a "profit" of $23 billion in legal trading inside a few minutes. Also the ever-rising exchange rate under the willing-buyer-willing-seller basis, the black market dealers sometimes hold on to the "intercepted" forex and then dispose it the following day when the same bank would have significantly increased the exchange rate.
Pro Pipper Trading Launches New Forex Blog
PR.com - PR.com (press release) - May 10, 2008
com)- Although labeled a ‘blog,’ the new feature will mostly serve as a quick resource center providing Forex traders with articles, analysis and new trading methodologies. The blog will also highlight high-end products and services traders may find interest in and will occasionally include random fun stuff. “Through our research and communication with our members and guests, we’ve found this is a feature they would like and follow,” says Ross Yamashita, owner of Pro Pipper Trading. “We’ve built a solid foundation up to this point and we’re going to slowly start adding more features to our company’s website for our members and guests. ”This new feature will not replace any of the current elements offered by Pro Pipper Trading.
Forex reserves drop by USD 371 mn
Myiris.com - May 10, 2008
As per the weekly statistical supplement of the Reserve Bank of India (RBI) released on May 02, 2008, foreign currency and appreciated USD 248 million to USD 302,576 million. During the same period, the reserve position in the International Monetary Fund (IMF) dropped by USD 7 million to USD 479 million, while gold reserves declined USD 612 Million to USD 9,427 million. Foreign currency assets expressed in USD include the effect of appreciation or depreciation on non-US currencies (such as Euro, Sterling and Yen) held in reserves * Q - Quote , N - News , C - Chart , F - Financials. smallText1:link {font-size:10px; color:#b22a00;padding:3px;text-decoration:none}.