Wednesday, November 25, 2009

Deutschland And France will be heading The Recovery In The Euro Zone

t seems that the growth in the eurozone in the third quarter, after the acceleration in the two largest economies in the euro area, Germany and France, witness the 50% of the economy in the euro area has witnessed. In the second quarter, left Germany and France, the recession after recording a positive growth of 0.3%, caused contraction in the euro zone slightly to 0.2% from 2.5% in the first quarter thanks to the wise intervention of the ECB and the national European governments. The ECB cut the benchmark interest rate of 1% and started buying bonds worth 60 billion euros from 6 July in order to revive the economy and assisting them with liquidity. The relaxation of quantitative methods also to the increase in liquidity in the markets and raising the general level of prices. In addition, on 29 September forward, they offered more liquidity to banks, the lending and spending. Also participated in the global recovery in the back of rising demand for goods and services. As we know, Germany is the largest exporter in the world in 2008, and it relies heavily in its growth in sales overseas. To increase the recovery of global demand growth in the third quarter. According to the German Statistical Office, exports and investment in equipment and construction were the catalysts for the expansion in the third quarter. Also contributed to the increase in imports to growing changes in stocks, while private consumption is drawn on the other hand, the growth down. German Chancellor Angela Merkel plans launched 85 billion euros in order to reduce the economy in addition to the taxes and to create momentum for the purchase of new vehicles to promote revive. The gigantic economy in the euro zone is a strong sign of recovery and is on the right track. Private consumption tend to be promoted as a result of restored confidence, which increases the individual to consume more goods and services, government infrastructure spending, and exports showed an improvement from the second quarter. All of theses factors contributed to the abolition of the growth in the largest economy in the euro zone. Growth widened in the third quarter as from the first reading came in at 0.7% compared with the advanced 0.3%, which was revised 0.4% indicated. On the year, facilitating the abbreviation for the working-day adjusted reading of -4.8% from the revised decline of 5.8% contraction. What is the annual non-seasonally adjusted reading, the contraction to 4.7% over the revised decline moderated from 7.0%. IW economic institute projects of the German economy to shrink 4.5% in 2009, before to 1.5% next year. In France, the first reading of GDP for the third quarter remained at 0.3% was similar to the expansion of the second quarter. In the years, the reading showed a decline in the contraction to 2.4% from the revised decrease of 2.9%. Growth remained as to the quarter and contraction moderated over the year, but the French economy showed no acceleration of the German economy. A look into the details, the exports exceeded imports, as it increased by 2.3% over the quarter, while household consumption, the largest contribution to the French economy remained in third quarter as 0.3% heavy. On the other hand, investment fell by 1.4% from 1.2% fall recorded in the second quarter posted.

Sunday, November 22, 2009

RBI zero-cost facility in forex

The Reserve Bank of India (RBI) on Wednesday moved to ease zero-heating or cost structures to ensure greater transparency in forex trading in derivatives. Since importers and exporters allowed to write "covered call and put options, both in foreign currency rupee and cross currency and receive awards in the same currency, RBI feels these facilities should withdrawn with immediate effect .

Therefore, in order to provide further clarity in this context, a monthly statement from the customer on the booked amounts and the value in the past, which filed the central bank.

RBI wants to ensure that all controls are in place and all the details of the transaction were disclosed. The company must also ensure that an annual certification is given to its board of directors, and all derivative transactions are approved and the board is aware of the same are, "said a source.

In addition, a joint declaration must also be that the derivatives risks are adequately hedged between the parties.

Is "In the past, when the fraud took place in foreign exchange derivatives, it is when considering that the underlying documents by fax or email, in some cases was found. So go ahead, make sure each bank must that given a certificate by an auditor on an annual basis, "said the source.

Source added that the banks have also set the level of exposure hedged with other banks, especially if protection is to be declared done in parts.

Talking about the product properties, it was removed from the complex structured products, and with a plain-vanilla cross-currency option at the time of creation is allowed to happen.

Such a public bank in the country had secured a seven-year-rupee liability for 7%, moved to yen, which appreciated strongly against the dollar later, and thus citing losses.

Premiums should be determined in a transparent manner and options can not be combined with other derivative products, said the source.

The RBI in its draft on foreign exchange derivatives is said that banks can hedge their risks from the movement of the gold price and currency, assets and liabilities.

"The banks are allowed to implement adequate internal controls, risk monitoring and management systems and an assessment of the market mechanism are in a foreign currency rupee options book, requires the prior approval of the RBI walk," it said.

Banks and companies can and then cancel their forward contracts, provided they give their information on the exposure.

Saturday, November 21, 2009

India forex reserves and gold reserve

India forex reserves and gold reserve

It is estimated that approximately 15,000 tons of gold are privately held in India, more than twenty - five times as large as the official Hoard 558 tonnes after the RBI's recent purchase of 200 tonnes from the International Monetary Fund (IMF). In a year's Gold by 53 percent, estimated from $ 742 to $ 1134 one ounces in international markets. In view of this step instead of the value of the country's private gold reserve, the highest in the world, from $ 357 billion to $ 547 billion, company has jumped from an increase of $ 190 billion (RS 7.64 lakh crore).

India's forex reserves rose of 1,667 billion U.S. dollars to 262,306 billion U.S. dollars, ended for the week May 29
Reserves had risen terminated by U.S. $ 6 billion for the week May 22 Following in front of 1734 billion U.S. dollars in the week. Foreign currency, jumped up during the week to 251,456 billion U.S. dollars, up to 1291 billion U.S. dollars, compared to 250,165 billion U.S. dollars in the previous week. Foreign currency expressed in U.S. dollars include the effect of appreciation or depreciation of non-US currencies (such as Euro, Sterling, place) in reserves, RBI said in its weekly report yen. The country's gold reserves during the week went up to 9604 billion U.S. dollars compared to 9231 billion U.S. dollars in the previous week, while the special drawing rights (SDRs) remained unchanged at 1 - million-dollar, state-the central bank said. India's reserve position in the International Monetary Fund (IMF) rose to 1245 billion U.S. dollars compared to 1242 billion U.S. dollars in the previous week, RBI said.

Wednesday, November 18, 2009

India should closely monitor forex reserves'

India should closely monitor forex reserves.

India should closely monitor the currency reserves at 248 billion U.S. dollars in 2008-09-Booth 309 billion compared with U.S. dollars in the year prior period, TC Venkat Subramanian, Chairman and Managing Director of Export Import Bank, said.

India should closely monitor forex reserves.

Provision of the convocation address here yesterday at Thiagarajar School of Management, Subramanian America for the global economic crisis, the debt and said it proved "toxic acid for the U.S. economy."

India should closely monitor forex reserves.

He said the Economic Meltdown began in America and as its imports fell, it started effect on the economies of other countries, including Japan and the European Union. American people had borrowed heavily for their homes, without a focus on savings.

Negative savings rate in this country things even worse, made an impact on the financial system, "he said. He said falling remittances from Indian workers by 10-15 percent, are likely

The forex inflows from foreign direct investment, stock markets and foreign institutions had to fall from 64 billion U.S. dollars to 13 billion U.S. dollars. However, he said, would revive the IT companies by 2010 by cutting costs..

Pakistan's forex reserves ease to $14.46 bln

Pakistan's forex reserves to accelerate $ bln 14:46
Pakistan's forex reserves to accelerate $ bln 14:46

KARACHI, Oct 15 Reuters - Pakistan's foreign reserves and facilitated at 14:46 billion U.S. dollars in the week to October 10 compared with 14.75 billion U.S. dollars the previous week, ended the central bank said on Thursday.

Reserves by the State Bank of Pakistan held fell to 10.89 billion U.S. dollars from 11:17 billions of dollars a week earlier, while those of commercial banks held at 3:57 billion dollars compared with 3.58 billion U.S. dollars a week earlier, were the central bank said in a statement.

Pakistan's forex reserves to accelerate $ bln 14:46

Foreign exchange reserves hit a record high of 16.5 billion U.S. dollars in October 2007 but fell steadily to 6.6 billion U.S. dollars to import through November last year, mainly because one BOM Soaring.

However, reserves the right to an International Monetary Fund (IMF) emergency loan package to help 7.6 billion of U.S. dollars in the balance of payments crisis and avert the bank agreed to November.

The IMF, the loan to 11.3 billion U.S. dollars in July, raised has paid a total of 5148 billion U.S. dollars.

Pakistan's forex reserves to accelerate $ bln 14:46

Nepal forex reserves rise by 33.3 percent

Nepal forex reserves rise by 33.3 percent

KATHMANDU: Nepal's central bank, Nepal Rastra Bank said Monday country's gross foreign exchange reserves stood at Rs 283.4 billion, a rise by 33.3 per cent in mid-May 2009 in comparison to mid-July 2008.

In a statement issued here the central bank said in the same period year, such reserves had risen by 19.3 per cent last.
On the basis of the U.S. dollar, gross foreign exchange reserves rose by 15.4 per cent to $ 3.6 billion in mid-May 2009. "Such reserves had gone up by 15.5 per cent in the same period of the previous year," the statement said.

The current level of reserves is adequate for financing merchandise imports over 12.4 months and merchandise and service imports over 10.1 months. A major contributor to the increase in foreign reserve is remittance. "Under transfers, workers' remittances soared by 55.5 per cent in the review period compared to a growth of 35.5 per cent in the same period of the last fiscal year," it said.

In the first ten months of the current fiscal year, NRB mopped up Rs 11.7 billion of net liquidity through open market operations. Of the total liquidity of Rs 20.7 billion mopped up in the review period, Rs 7.5 billion was mopped up from outright sale auctions and Rs 13.3 billion from reverse repo auctions.

"Despite a substantial injection of liquidity through foreign exchange intervention in the review period, a liquidity of Rs 9.0 billion has been injected through repo auctions in the seventh and eighth months of the review period on account of a shortfall in liquidity - particularly due to a higher cash balance of the government with NRA and a higher expansion of currency in circulation in the review period, "it said.

Net liquidity of Rs 4 billion was mopped up in the corresponding period of the previous year through open market operation including Rs 6.5 billion through outright sale auctions, Rs 6.6 billion through reverse repo auctions and Rs 9.0 billion through repo auctions.

In the review period, NRB injected net liquidity of Rs 121.5 billion by net purchase of $ 1.6 billion from commercial banks through foreign exchange intervention.

"A net liquidity of Rs 76.6 billion had been injected through a net purchase of $ 1.2 billion from commercial banks in the corresponding period of the previous year," added NRA.

Period at elevated inflow of remittances necessitated such a substantial amount of intervention in the foreign exchange market in the review.

NRB purchased Indian currency (IC), worth 59.9 billion through the sale of $ 1.3 billion in the review period. IC48.3 billion had been purchased through the sale of $ 1.2 billion in the corresponding period a year ago.

A depreciation of Nepali currency vis-à-vis the U.S. dollar encouraged import from India against the payment of CAP and, therefore, a higher dollar amount of CAP purchase was made as against a sale of the U.S..
Nepal forex reserves rise by 33.3 percent

Tuesday, November 17, 2009

India & Pakistan FOREX

India and Pakistan FOREX

current Euro currency price Pakistan (Buenos Aires) - EUR / USD Current Price: 1.3637. Euro won the upside risks after risk appetite returned some of the market, and reached above resistance at 1.3665 early in the last report. Indicators seem rather flat in the hour, even greater time frames is further upside bias and propose a first confirmation come after the price breaks above the resistance. ? Long term trading will depend on the price reaction at the 1.3740 area, where we have measured the 38.2% Fibonacci retracement of 1.60 ~ weekly

Pakistan's record current account deficit reduced to 606 million U.S. dollars in July from 1:18 billion dollar deficit last year, said the State Bank of Pakistan Wednesday.

The central bank said a decline in imports and increase in overseas remittances led to a contraction in the current account deficit in July.

Pakistan recorded a current account deficit of 8.86 billion U.S. dollars last year.
Pakistan's record current account deficit reduced to 606 million U.S. dollars in July from 1:18 billion dollar deficit last year, said the State Bank of Pakistan Wednesday. (Market News from RTTNews available)

Pakistan's July Current Account Deficit Narrows From Last Year

Pakistan's current account in July of last year Narrows

Pakistan's record current account deficit reduced to 606 million U.S. dollars in July from 1:18 billion dollar deficit last year, said the State Bank of Pakistan Wednesday.

The central bank said a decline in imports and increase in overseas remittances led to a contraction in the current account deficit in July.

Pakistan recorded a current account deficit of 8.86 billion U.S. dollars last year.
Pakistan's record current account deficit reduced to 606 million U.S. dollars in July from 1:18 billion dollar deficit last year, said the State Bank of Pakistan Wednesday. (Market News from RTTNews available)
Forex is shifted one interbank market, the shape of global trade in 1971 at fixed exchange rates increased, these floating around. This is a series of transactions among forex market agents with exchange of specified sums of money in a currency unit, all given nation for currency of another nation with an agreed rate for any given date. While Exchange, the exchange rate of one currency into another currency defined simply: by supply and demand - exchange to agree on which both parties.

Closed markets prevent arbitraging

While severe price discrepancies exist between the values of shares listed on each exchange, the closed nature of the markets prevents arbitraging that would bring parity to the various valuations.

Analysts say the next logical step would be a merger of the A and B markets, and some years down the track the opening up of the yuan to foreign exchange markets.

"We don't expect to see the yuan traded on the open markets for at least five to 10 years," says Ong. "That means the liquidity on the Chinese markets will be less like it is in Hong Kong than, say, Malaysia, where the ringgit is also a closed currency.

Concerns persists over market

Concerns persists over market transparency

There are still concerns about how transparent China's markets are, how easily it seems some people can manipulate them, but this is clearly a step in the right direction."

Analysts say they expect an influx of local cash will boost liquidity in the slow market, which had been shunned by the foreigners it was originally designed for. They expect share prices to jump as much as 20 to 30 percent when trading resumes.

The reform of the China B share market is seen as a move to prepare the domestic stock markets for broader foreign access after China joins the World Trade Organization, probably this year.

Most China B-listed companies also have A shares, and many A and B companies have shares listed on the Hong Kong stock exchange, known as H shares.

Shares on the H market have an average price-to-earnings ratio of 11.5 times, while B shares have an average P-E ratio of 21.8 times and A shares a ratio of 60.5 times.

Brace for a wave of new traders

Brace for a wave of new traders, say analysts

Analysts say the number of traders set to buy into the China B market could be enormous, with estimates that there is as much as $70 billion in hard currency held in private bank account in China.

China has two types of hard currency B shares -- one traded in U.S. dollars on the Shanghai stock exchange and the other in Hong Kong dollars on the southern Shenzhen bourse.

Other observers say the rush to trade China B shares could be muted, since some estimates say that up to 90 per cent of China B shares are already owned and traded by local Chinese investors.

"They may have exploited any number of loopholes to be holding hard currency, or they may have permission to hold hard currency and trading the shares legally," said Hong Kong-based Li Lian Ong, an economist with the Macquarie Bank.

Despite this, Ms Ong and other observers have welcomed the move on China's part of open up its share markets.

Forex controls to curb black market

Forex controls to curb black market currency trade

"Foreign exchange controls are needed to curb illegal forex trade in the black market and maintain market order," it said.

"They're trying to reel in the illegal channels, otherwise that will create fund flows . . . that could be out of control," said Joseph Tang, head of China research at Sun Hung Kai Investment Services in Hong Kong.

The yuan on the black market, which spiked after the B share opening, was announced to as high as 8.70 from a normal level of around 8.50, had already begun retreating on Thursday.

The joint statement said investors could open trading accounts with brokerages from Monday. On Wednesday, Shanghai investors opened 1,125 B share accounts -- a three-year high.

Investors in cities from Beijing in the north to the southern boomtown of Shenzhen flocked to brokerages.

Companies listed on the China B market boast a total market value of little more than $8 billion, compared with the $600 billion value of the China A market, which is off limits to international investors.

Forex laws to limit China

Forex laws to limit China B share rush

China will soon begin trading hard currency B shares, but only under tight controls aimed at curbing illegal money trading.

State-owned media said Thursday a suite of foreign exchange controls -- designed to avert a stampede to buy illegal hard currency for B share trading -- would remain in place until June.

The announcement of the controls follows China's statement that Chinese investors would for the first time be allowed to trade hard currency China B shares, which were previously tradable only by international investors.

The China B share market, which is much smaller than the China A share market, will re-open on Monday after a week long suspension designed to allow for the China A and China B exchanges to prepare for a new wave of traders..

The foreign exchange controls state that until June 1, Chinese investors may only use foreign exchange savings deposited before February 19, the Shanghai Securities News quoted a joint statement by stock market and foreign exchange regulators as saying.

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