EMerging Equity
currency
S&P Downgrades Russia Credit Rating To Junk
Standard & Poor’s has cut Russia’s credit rating to junk level, putting it below investment grade for the first time in a decade. The international ratings agency announced on January 26 it had lowered its rating for Russian government debt to BB+ from BBB-. It added a negative outlook on the rating, saying, “The downgrade … Continue reading
Falling Ruble Can Change Power In Several Former Soviet Republics
As many as 70 percent of guest workers have returned to their home countries from Russia after the drop of the ruble exchange rate. Vadim Gorshenin, Chairman of the Board of Directors of the Pravda.Ru Media Holding, dwells on positive and negative aspects of the guest workers’ exodus. Is it good or bad for Russia? … Continue reading
Swiss Shocker Triggers Gigantic Losses For Banks, Hedge Funds And Currency Traders – OpEd
By Michael Snyder The absolutely stunning decision by the Swiss National Bank to decouple from the euro has triggered billions of dollars worth of losses all over the globe. Citigroup and Deutsche Bank both say that their losses were somewhere in the neighborhood of 150 million dollars, a major hedge fund that had 830 million … Continue reading
Making Sense Of The Swiss Shock
By Marcus Brunnermeier & Harold James PRINCETON – Since the European sovereign-debt crisis erupted in 2009, everyone has wondered what would happen if a country left the eurozone. At first, the debate focused on crisis countries – Greece, or maybe Portugal, Spain, or Italy. Then there was a rather hypothetical discussion of what would happen … Continue reading
Goldman Sachs, Hedge Funds Caught On Wrong Side of Swiss Franc Trade
When a central bank move surprises the elite stratosphere and top level banking executives are caught flatfooted, that in itself is news. Goldman Sachs shocked with SNB’s decision Such is apparently the case as the Goldman Sachs Group Inc (NYSE:GS) , whose alumni sit in top economic perches around the world, as the investment bank was … Continue reading
What In The World Just Happened In Switzerland? – OpEd
By Michael Snyder Central banks lie. That is what they do. Not too long ago, the Swiss National Bank promised that it would defend the euro/Swiss franc currency peg with the “utmost determination”. But on Thursday, the central bank shocked the financial world by abruptly abandoning it. More than three years ago, the Swiss National … Continue reading
Swiss Policy, China Reserves, Peru and Egypt Surprise
By EM Bits When we thought the day had enough excitement from central banks after India and the SNB, Peru and Egypt also surprised markets. China released its FX reserve figures yesterday showing another sharp decline. Using a back-of-the-envelope calculation, it seems like likely still strong. When we thought the day had enough excitement from … Continue reading
Swiss Franc Skyrockets To Record Level, As Central Bank Removes Euro Peg
The Swiss franc has added more than 15 percent against the euro after the Swiss National Bank dropped a three-year cap on the currency’s relative value. The bank said in a statement that the cap, introduced in September 2011,“protected the Swiss economy from serious harm,” but isn’t necessary any longer. The move comes a week … Continue reading
Medvedev: Russia Won’t Abandon Ruble Free-Float
Russia’s currency will continue to free float, despite the major damage incurred by sanctions and oil, Prime Minister Dmitry Medvedev said, supporting the Central Bank’s decision made in November. “The government will not reject the ruble’s free float,” the Prime Minister said at the sixth Gaidar Forum, being held in Moscow January 14-16. “Of course, … Continue reading
Era Of Record Foreign Reserve Stockpile In China Over – Economists
Foreign currency reserves in China have reached a ceiling of $4 trillion, and won’t rise above this threshold in 2015, according to the majority of economists in a Bloomberg survey. 11 out of 18 polled said the zenith was reached on June 30th of 2014, and 12 said the cash hoard will max out between … Continue reading
