` Ruble Rises Against US Dollar and Euro on ` Moscow Stock Exchange '

#AceFinanceNews – MOSCOW – May 08 – INTERFAX.RU – Ruble against the dollar and the euro on the Moscow Stock Exchange on Wednesday rose amid allegations of the situation in Ukraine, made by Russian President Vladimir Putin after talks with his Swiss counterpart Didier Burkhalter, now presiding in the OSCE.

The euro exchange rate during Putin’s speech fell 39 cents to $ 48.96 rubles. Simultaneously, the dollar fell to 35.135 rubles, losing 27.5 kopecks to the previous close. Currency basket ($ 0.55 and € 0,45) decreased by 33 cent, amounting to 41.36 rubles.

Subsequently developed ruble success, pushing the dollar to 34.99 rubles. Thus, the first dollar for the first time in April fell below 35 rubles. Euro to 17:53 Moscow time dropped to 48.77 rubles and currency basket fell to 41.19 rubles.

At the same time the dollar and the currency basket updated lows in nearly a month. In addition, for the first time since early April cart was at the levels at which the central bank can not intervene to support the ruble.

The Russian stock market after Putin’s announcement also accelerated the rise. By 17:48 Moscow time the MICEX index rose to 1365.84 points (+3.6%), RTS – to 1226.88 points (+4.6%), while the ruble prices of most “chips” on the Moscow Stock Exchange rose within 10%.

Experts attribute the ruble and stock market growth to the fact that Putin’s statement after his meeting with Burkhalter gave hope for a speedy resolution of the conflict between Kiev and supporters of the federalization of Ukraine, whose performances will continue in the south-east of the country.

Ace Related News:
1. May 07 – Interfax – http://tinyurl.com/pspcxjl

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` Argentina Bankruptcy of 2001 Can Prove That Theories it Cannot Happen Again Wrong ‘

#AceGuestNews and Views by Anna Mikhailova 

National bankruptcy skeptics like to claim that while countries went bankrupt hundreds of years ago, such a catastrophe is out of the question in the modern world.

Argentina Bankruptcy 2001The story of Argentina’s bankruptcy in 2001 proves them wrong.

Most crises follow a common logic which is characterized by sudden onset, rapid growth, and the transition to a new quality and normalcy.

The difference between the Argentinean scenario from the usual canons laid in the absence of the normalization phase – crisis at the time were simply “preserved”, then to break out with renewed vigor.

The decline in GDP of 15%, unemployment at 24%, a default on its foreign liabilities of $ 141 billion, a decline in business activity, the removal of the hard peg to the US dollar and the subsequent devaluation of the Argentine peso by more than 70%. 13% cut in state pensions and civil servants’ salaries.

There was a run on banks following the collapse of the country’s national currency. Argentina’s citizens were so desperate and panicked that many spent nights sleeping in front of the ATMs. The systematic impoverishment of the population led to mass discontent and riots all over the country. Eventually, the situation became so chaotic that President Fernando de la Rúa fled from an enraged mob by helicopter. Despite all the protests and bank runs, the nation simply could not repay its $145 billion in foreign debts.

The country had a population of 35 million, of whom 19 million were classified poor as of this June, with earnings of less than $190 a month; 8.4 million were destitute, with monthly incomes below $83.

Left bankrupt by their government, their bankers and the International Monetary Fund, Argentines have lost faith in their political leadership. Five presidents passed through the Buenos Aires in the span of two weeks, until Nestor Kirchner, a provincial governor until then, assumed the presidency in 2003. Over the next few years he managed to pull the country out of the economic chaos, but evidently the bankruptcy never passes without a trace. Just last month Argentina announced its biggest currency devaluation in a decade, with the peso’s plunge rattling financial markets worldwide. With inflation running at about 30 percent, it seems the country is on the verge of yet another devastating collapse.

Anna Mikhailova

Audio: to Download  

These are not the opinions of the `Ace News Group ‘ and are the news and views of the writer.  

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`Investor’s Eye up the next `International Currency ‘ of the Chinese Yuan’

#AceFinanceNews says that `Chinese Yuan can become dominant world reserve currency according to the latest survey

Published time: March 01, 2014 12:15
Reuters / Kacper PempelReuters / Kacper Pempel
The Chinese yuan can overtake the dollar as the leading international reserve currency, a new poll of institutional investors indicates.

The authors of the survey, conducted by the Economist Intelligence Unit and commissioned by State Street financial services, polled 200 senior executives at institutional investors with knowledge of their exposure to yuan assets. Half of the respondents were from the firms headquartered in mainland China (including Hong Kong and Taiwan) and the other half were based elsewhere.

The report accompanying the survey points out that by the end of 2013, the yuan has risen to become the second-most-used trade financing currency and ninth-most-used currency for payments globally.

Image from statestreet.comImage from statestreet.com

A majority – 53 percent of respondents said that they believe the yuan will one day surpass the dollar as the top currency in international holdings of foreign-exchange reserves. In China 62 percent expressed this opinion, compared to 43 percent of respondents outside the country.

Last May International Monetary Fund analysis showed that the dollar had slumped to a 15-year low, heightening concerns that it may lose that status as global reserve.

Chinese officials are diligently working on sustaining their national currency, promoting it beyond the frontier.

In October 2013, the government of China agreed a pilot program to create a UK-based yuan hub that allows London investors to buy up to $13.1 billion (80 billion yuan) of stocks, bonds and money market instruments directly, avoiding Hong Kong transactions.

The move gave the yuan a firmer footprint in Europe and helped to overcome the euro in December, becoming the second most widely used currency in global trade.

Only 11 percent of respondents have said that they do not expect the yuan to become a major reserve currency, a split between 16 outside China and six onshore, according to the poll. Among the former, the most often cited reasons are that the yuan will never enjoy enough liquidity across all asset classes to offer a viable option as a reserve currency, and that people will not trust the yuan as a store of value, the survey says.

The very few pessimists from China-head-quartered institutions, meanwhile, say that people would be “concerned about future policies of the Chinese government and opposition from other economic powers, such as the US, the EU and Japan.”

But the consensus is that one day it will be a yuan world, according to the survey.

“As China’s economic influence grows, the global importance of the renminbi (yuan) will become magnified. Indeed, while for decades it has been a ‘green-back world’, dominated by the US dollar as the world’s primary reserve currency, many think a ‘red back world’, in which the renminbi enjoys premier status, is increasingly a possibility,” the survey’s authors concluded.

A report on RT back in December 2013 stated:

The yuan has replaced the euro to become the second most widely used currency in global trade in 2013, according to the SWIFT network responsible for international financial transactions.

The share of the yuan in global trade finance has jumped from 1.89 percent in January 2012 to 8.66 percent in the form of letters of credit and collections in October 2013, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) data shows.

The share of trade settlements in the euro fell from 7.87 percent to 6.64 percent in the same period. The US dollar still leads with 81.08 percent of foreign trade payments using the American currency in October.

The most active yuan users are Chinese and Hong Kong companies which account for about 80 percent of the total foreign trade operations in the yuan. The remaining 20 percent is spread among Singapore (12%), Germany (2%), Australia (2%) and other countries (4%).

“The renminbi is clearly a top currency for trade finance globally and even more so in Asia,” Franck de Praetere, SWIFT’s Singapore-based head of payments and trade markets for Asia-Pacific, commented in a statement.

#AFN2014 

RT 

 

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” Bitcoin Cyrpto Currency has no real value in the `Financial Markets’ as it is not backed by Real Asset’s”

#AceFinanceNews says according to (RIA Novosti) – The Bitcoin cryptocurrency is not on par with other financial securities as it is not backed by real assets, an official at Russia’s central bank said Monday.

The bitcoin logo

The bitcoin logo (Photo credit: Wikipedia)

The Bitcoin system, governed by complex mathematical algorithms, has been at the centre of recent debate as financial leaders grapple with how to regulate so-called virtual currencies.

As the total number of Bitcoins approaches a hard mathematical limit of 21 million, the coins become more computationally intensive – and costly – to calculate, a process known as mining.

“In order to equate Bitcoins with securities, it is essential to first understand what value a financial instrument represents,” said Andrei Shamrayev, deputy director of the central bank’s national payment system.

“[A Bitcoin’s value] is only fixed by the amount of time spent on its ‘mining.’”

The bank said last month that Bitcoin users – who are often also issuers of the currency through mining – could face jail time under laws restricting anonymous financial transactions intended to combat money laundering and the funding of terrorism.

Timur Batyrev, director of the bank’s national payments system, likened the currency Monday to a pyramid scheme fueled by speculative transactions.

“There will be people who are prepared to influence the exchange rate of Bitcoins in order to maximize profits.

Chiefly these are people who own a lot of Bitcoins, but there will also be people who will pay for this profit,” Batyrev said.

Designed by an unidentified computer scientist operating on-line under a pseudonym, Bitcoins have exploded as a currency for illicit transactions and were the primary means of payment on the narcotics-focused Silk Road on-line marketplace raided by the FBI in October.

 

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Is the US Dollar losing its grip as the top-dog of World Currencies!

Over the past few years many economies have gone through massive change, none more than the United States of America. Having survived the 2008 crisis  and been able to re-float the economy, ever cautiously! The question of how, has never reared its ugly head until now! The link to the video l have added to the bottom of this post, lets you the people decide, about what really when on behind closed doors, to save the almighty dollar!

The fact that Germany deposited a vast amount of their Gold could lead some to believe this was to support an ailing economy, but others would argue it was just the best place to store their most precious possession! The action of the Federal Reserve, to refuse the auditors of Germany’s  Bundesbank access to check their deposit, could lead some to believe that it has been secured against some massive debt, to support the US Dollar maybe! Or it could just be a misunderstanding and it will all be made clear very soon!

Either way one fact is that of the 9 strong rooms in the Federal Reserve, the auditors were not allowed to view more than one, and not allowed in the room to touch or check their most valued asset!

After many years of studying currency providers and watching from the sidelines as people gambled on the stock-markets risking millions of £’s and $’s everyday, one thing is sure ,without people having faith in the currency, people start divesting themselves of their share portfolios, as in the news over the past 12 months many billionaires have done!

So when l see or hear about theses types of actions ,involving a currency l always remember the simple phrase ” There is  no Smoke without Fire” so once again l will watch and see how this latest story unfolds, and see if this time, the US Dollar and its mighty power over the world, finally loses its grip, and the top-dog on the world stage, is replaced by a mongrel that has been snapping at its heels for a long time, namely China!

More soon: Editor – link to video – https://www.youtube.com/watch?v=NyemAwLD2N0&feature=youtu.be

#acedebtnews, #acefinancenews, #acenewsservices, #china, #currency, #deutsche-bundesbank, #economic, #federal-reserve-system, #federalreserve, #germany, #politics, #united-states