Some interesting currency moves today

[Wd40]

Has anybody noticed the NZD crash? NZD and SGD always were close to parity now 1 NZD = 0.9 SGD.
AUD too is now close to parity with SGD.

[MikeJones]

As a Kiwi who spent 14 years in the UK I'm watching the NZD very closely When I arrived in the UK the NZD was at 28 pence when I left for SG it was at 48/49 pence so while I've still got money in the UK I 'm hoping the NZD keeps sliding for a bit longer (or even better the pound gets stronger against the NZD and the SGD) so I can pick a good time to repatriate that cash.

Mike

[earthfriendly]

A slight technical problem. In Greece.

http://news.yahoo.com/cant-print-drachm ... 35680.html

[ecureilx]

A slight technical problem. In Greece.

http://news.yahoo.com/cant-print-drachm ... 35680.html

I know there is a large legal / security currency printer in Europe who still prints plane loads Of Z $, shipping on a weekly basis ... and they have ample capacity I am sure

[JR8]

The company is De La Rue; despite the French name it's a British PLC, and an historic one. It's printed UK banknotes and stamps 'like forever'.
They used to print S$ too until quite recently. They also print the currencies of many other countries, including - ironically - being one of the handful of printers of the Euro.

[ecureilx]

The company is De La Rue; despite the French name it's a British PLC, and an historic one. It's printed UK banknotes and stamps 'like forever'.
They used to print S$ too until quite recently. They also print the currencies of many other countries, including - ironically - being one of the handful of printers of the Euro.

I read they been printing for some Asian countries too ..

But nothing beats their business for Z$ I guess, MD 11 loads on a weekly basis...

[Strong Eagle]

Well... the Greeks have made it clear... the austerity conditions demanded by Merkel and the Troika seem to have been soundly rejected.

This is a severe loss of face and bargaining power for the Troika. Now, they must include in their deliberations:

a) How badly do they really want to keep Greece in the Euro and Eurozone?
b) How much of a haircut are the bankers going to take in order to satisfy a renegotiated debt package?
c) Is there anyway that they can enable Greece to stay in the Euro while watching them default on the majority of their debt?

I wouldn't be surprised to see Greece go the way of Argentina... a default on all or most all debt, a moratorium on payments, then an extended repayment plan on about 30% of the debt.

[x9200]

I don't think they lost face, unless for the reason they should have said "nein" to the demands of Greece already long time ago. You see it from the perspective of an euro-skeptical person but this is not like the Troika does anything against the will of their citizens and all people around are that sympathetic to the Greeks.

This is, for example, what Germans think about helping Greece any further:
http://www.forschungsgruppe.de/Aktuelle ... barometer/
No further concession should be made – 85%.

[Barnsley]

Well... the Greeks have made it clear... the austerity conditions demanded by Merkel and the Troika seem to have been soundly rejected.

This is a severe loss of face and bargaining power for the Troika. Now, they must include in their deliberations:

a) How badly do they really want to keep Greece in the Euro and Eurozone?
b) How much of a haircut are the bankers going to take in order to satisfy a renegotiated debt package?
c) Is there anyway that they can enable Greece to stay in the Euro while watching them default on the majority of their debt?

I wouldn't be surprised to see Greece go the way of Argentina... a default on all or most all debt, a moratorium on payments, then an extended repayment plan on about 30% of the debt.

I am no fan of the EU , however I am not sure where you are coming from here.

The "troika" haven't lost anything , the Greek people have voted on something that as far as I can see wasnt even up for negotiation so I am a bit baffled by it all.

Clearly something needs to be done to dig Greece out of this mess, what it is I do not know.

I am pretty sure the other countries who were able to handle the "austerity" imposed on them far more effectively than the Greeks will be very interested to see how this pans out.

[Barnsley]

I don't think they lost face, unless for the reason they should have said "nein" to the demands of Greece already long time ago. You see it from the perspective of an euro-skeptical person but this is not like the Troika does anything against the will of their citizens and all people around are that sympathetic to the Greeks.

This is, for example, what Germans think about helping Greece any further:
http://www.forschungsgruppe.de/Aktuelle ... barometer/
No further concession should be made – 85%.

The Greeks have voted on something that wasn't up for negotiation , they have "Said No , to more austerity" , it looks to me to have the same value as myself having a referendum on " No to VAT/GST on alcohol" , I am not in a position to implement the result of the vote if its against current policy.

A complete waste of time and money for Greeks.

[x9200]

I am pretty sure the other countries who were able to handle the "austerity" imposed on them far more effectively than the Greeks will be very interested to see how this pans out.

Yep. Exactly. I understand that without own currency, devaluate etc. it may be more challenging but coming from a country that undergone a shock therapy, something I believe incomparable in terms of severity to what has been happening within last 5 years in Greece, I watch the Greeks whining with my eyes wide open. If the economy is in a shit hole it is sort of natural the quality of living will suffer until the country finds the way out.

Close to 250 milliards Euros were pumped into the Greek's economy over last 5 years, it's like 4 milliards every single month. What happened to this money? All eaten up to maintain the privileges and the standard of living? Why there is no plan in place to do the therapy more complex, improving competitiveness of their products/companies, closing down or selling out state owned companies making no money, etc etc? I would expect this is in the first place the duty of the country, not EU, but surely this would not be politically popular.

(edited out one wrong word)

[x9200]

I don't think they lost face, unless for the reason they should have said "nein" to the demands of Greece already long time ago. You see it from the perspective of an euro-skeptical person but this is not like the Troika does anything against the will of their citizens and all people around are that sympathetic to the Greeks.

This is, for example, what Germans think about helping Greece any further:
http://www.forschungsgruppe.de/Aktuelle ... barometer/
No further concession should be made – 85%.

The Greeks have voted on something that wasn't up for negotiation , they have "Said No , to more austerity" , it looks to me to have the same value as myself having a referendum on " No to VAT/GST on alcohol" , I am not in a position to implement the result of the vote if its against current policy.

A complete waste of time and money for Greeks.

Not for the populist GR gov that now have a nice excuse and this was likely the whole purpose of the referendum.

[JR8]

... the Greeks don't want to be in the Euro; but will Germany let them leave? Not a chance.

How to resolve that one? Portugal, Spain, and Italy will be looking on with interest since each of them has strong anti-euro movements that would be markedly empowered if Grexit happens.

... Meanwhile I wonder how those accession talks with Turkey, Serbia, Albania, Morocco etc etc are going...

[x9200]

... the Greeks don't want to be in the Euro; but will Germany let them leave? Not a chance.

How to resolve that one? Portugal, Spain, and Italy will be looking on with interest since each of them has strong anti-euro movements that would be markedly empowered if Grexit happens.

Probably true but for the underlined part?



I think even for this referendum the gov argued that voting "no" would not made Greece to do grexit.

[Strong Eagle]

The Troika has lost a lot... they issued their ultimatum, they lost when Greece voted "f*ck you, Troika".

There are a few facts that cannot be ignored.

a) Greece is never going to fully pay its debt owed at 100 percent, even over the next 50 years. Somebody needs to get used to this... I refer you again to Argentina and Iceland. F*ck the banks, the people come first.
b) The Troika can forgive debt, even a bunch of it but there are two things wrong. First, they will never forgive as much debt as Greece can eliminate by defaulting, and second, without the ability to devalue its currency, Greece cannot become economically competitive.
c) Greece needs to have cheaper labor, cheaper imports. They need the Drachma in order to devalue it. Those with the cash are going to scream when currency controls are in place (aren't they already?) that forces those with money in Greece to become poorer.

The bottom line is short term pain in excess of the so called "austerity" program but a relatively rapid return or prosperity.