Category: Currency and Forex

  • A question of offshore ins and outs

    Are some South African investors developing an inverse relationship with offshore markets? Could some of us be subject to a strange, contrarian compulsion to get into markets just as the smart money gets out? Or perhaps we ring the changes by coming onshore just as the smart money goes off? The questions are prompted by…

  • Capital Idea for China’s Wealth

    Americans so love the latest, inexpensive “Made in China” products – cars are coming soon – that Chinese firms are flush with export profits. One might think, however, that those companies could easily export that wealth as well, investing the money made in America back into US companies, as the Japanese and Europeans do. Not…

  • U.S. Dollar Gains May Not Be Permanent

    NEW YORK – It may be too soon to call the dollar’s recent rise a full-fledged turnaround. And there may be some in corporate America who are just fine with that. After being beaten and battered for the last few years, the greenback appears to be emerging from its funk by making significant gains in…

  • Foreign exchange trade in China surges

    April 2005 saw dynamic trade on the inter-bank foreign exchange market in China, with a robust month-on-month growth of 40 percent in average daily transaction volume, which reached US$1.282 billion. According to the Shanghai-based national forex swap center, turnover of the US dollar, the Japanese yen, the HK dollar and the euro, amounted to US$28.215…

  • Hands off China’s Monetary Policy

    NEW YORK (ResourceInvestor.com) — China in 2005 sounds a whole lot like Japan a decade earlier except the fracas this time is over monetary rather than trade policy. The value of the Chinese yuan, also known as the renminbi, has become critical to commodity fundamentals as well as equity valuations for companies targeted by China…

  • Woman takes helm of China’s forex office

    China has appointed a woman as the new director of the State Administration of Foreign Exchange (SAFE), a government source said Monday. Hu Xiaolian, a central banker and formerly the assistant governor of the People’s Bank of China, will take over from Guo Shuqing, who became chairman of the China Construction Bank last week. Guo…

  • Online forex trading seen soaring by 2007 – U.S. study

    NEW YORK – Foreign exchange trading through Internet-based or electronic systems (online forex trading) is expected to grow sharply by 2007, according to a study released on Wednesday by research firm Celent Communications. [box]Electronic currency trading is split between the dealer-to-client segment, where banks trade with institutional customers, and the interbank market, where banks trade…

  • A Slow Boat to Yuan Devaluation

    With a too-hot economy, China knows it has to change its fixed currency system. But all options are risky, hence Beijing’s foot-dragging “Soon,” “someday,” “drop dead” — such are the responses from Beijing officialdom when asked for the umpteenth time about when China will overhaul its fixed currency regime. One hopeful remark electrifies the currency…

  • Secrets of healthy hedging

    This technique can give you the edge in investing overseas – if you stick with it, writes Simon Hoyle. Currency hedging and dieting have more in common than you may think. Both require that you decide what you’re going to do and stick with it. It’s particularly difficult to predict how currencies will move in…