| Brazil Real Falls as Central Bank Steps Up Dollar Purchases
Feb. 8 (Bloomberg) -- Brazil's real fell for a second day on speculation the central bank is stepping up its efforts to halt the currency's rally by buying more dollars and planning sales of reverse currency swap contracts. Central bankers have bought dollars since July to help exporters whose profit margins have been eroded by the real's four-year, 71 percent rally. Reverse currency swaps allow investors to hedge against a weaker dollar by locking in a fixed exchange rate to sell the U.S. currency in the future. ``The bank will probably act more aggressively now,'' said Jorge Knauer, manager of foreign exchange at Banco Prosper in Rio de Janeiro. ``There could be a sale of reverse currency swaps very soon in addition to heavier dollar purchases.'' The real fell 0.02 percent to 2.0929 reais per dollar at 3:50 p.m.
Foreign Exchange: CBN stresses need for transparency
The need for operators in the foreign exchange business in the country to show transparency in their transaction and returns to the Central Bank of Nigeria CBN has been stressed by the bank. The CBN gave the directive at a recent round table talk on “Foreign Exchange Management Issues" in Lagos, which the CBN orgnised for all authorised dealers and service providers in the foreign exchange market. It was gathered that the interactive session attracted authorised dealers from banks, Bureau de Change houses and other service providers. The CBN urged all stakeholders in the foreign exchange market to be transparent in their dealings since the present management will not tolerate abuses from operators henceforth, adding that it would continue to strive to make the market work.
Don’t let Valentine’s Day be a drain on your wallet
If you're planning a romantic weekend in Paris to celebrate Valentine's Day with your beloved, don't let the costs of spending abroad be a drain on your wallet says Find.co.uk, one of the UK's leading consumer finance portals.
The vast majority of credit cards charge an extra 2.75 per cent for foreign currency transactions, as well as making a turn on the exchange rate, which can lead to some nasty surprises when you receive your next credit card statement.
Only the i24 card (i24card.co.uk), Nationwide, the Post Office and Saga's credit cards don't charge a foreign exchange loading (a fee for converting your spending to foreign currency). In Saga's case, the ‘no foreign exchange loading' only applies within the EU. Outside the EU, a 1 per cent loading applies.
G7: US Treasury Adams: G7 China Language Change A "Technical Fix"
ESSEN, Germany -(Dow Jones)- Finance ministers from the Group of Seven leading industrialized countries tweaked the wording in their statement calling on China to reform its currency Saturday to stress the need for the country to focus on the trade-weighted value of the yuan. "It was a technical fix to put the focus on the effective exchange rate, since that is the most meaningful way to look at it," U.S. Treasury Undersecretary for International Affairs Tim Adams told reporters. For several years, the G7 has called for more currency "flexibility" for major economies that lack freely floating currencies. In its latest statement it said, "In emerging economies with large and growing current account surpluses, especially China, it is desirable that their effective exchange rates move so that necessary adjustments will occur." U.S.
Jeanie Wyatt: Currency trades perhaps best left to the bankers
Is the U.S. dollar the place to be? A weak dollar sounds worrisome and the headlines seemed to be filled with conjecture of its direction. Every few years, I routinely get the question about the advisability of investing in other currencies like the euro, pound or yen. First of all, keep in mind that the movement of other currencies relative to the U.S. dollar is of primary concern to individuals or businesses that have obligations or holdings in other currencies. If, like most Americans, your income and your debts are in U.S. dollars, you are not immediately impacted by any changes in other currency valuations relative to the dollar. If you do not have to use other currencies to buy your goods, you do not need to purchase other currencies, and generally you should not.
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