Korean Job Discussion Forums

[Palladium]

I want to stay in cash as I've got gold and (literally) hundreds of those old silver Korean coins (1988 Olympics, Asian Games, World Cup, etc...) and SAE's. I want to convert to a stronger currency than the Won, but am waffling on which to convert to. The Yen hit a 14 year high against the $ (Y86) and the Euro is about 150/$.

Both currencies have problems, the Euro zone may become 2 zones and Japan has deflation, sour economy and so forth. So, I'm not sure which to jump to.

Long term, I'm thinking Aussie $ or Canook $, as they are stable democracies, have managable debt and both export food and other commodities. They will take a hit when the correction comes, but longer term, I consider them a good currency to hold. Anyway, short term (1-6 months) which currency would you convert to? Euro or Yen?

[The_Source]

That's right, buy high & sell low. Brilliant idea, my man.

[Palladium]

[Palladium]

Russia to Buy Canadian Dollars, Mulls More Currencies
By Alex Nicholson and Paul Abelsky

http://www.bloomberg.com/apps/news?pid=20601083&sid=at5XsdLU.68w

Nov. 25 (Bloomberg) -- Russia�s central bank will add Canadian dollars to its reserves and may include more currencies as it seeks to reduce its dependence on the U.S dollar.

�Technical preparations for transactions in Canadian dollars are underway,� Sergei Shvetsov, the bank�s financial operations head, told lawmakers in Moscow today, in remarks confirmed by a Bank Rossii official. �Then there may be one, two other currencies and that�s it.�

Russia aims to diversify its reserves, increase gold holdings and promote regional currencies in trade and finance to reduce risks posed by the dollar�s dominance. President Dmitry Medvedev has blamed the global financial crisis on an over- reliance on the U.S. currency. Russia�s interest in buying assets denominated in Canadian dollars is also part of its strategy of reducing exchange-rate volatility, said Vladimir Bragin, an economist at Trust Investment Bank in Moscow.

�They may not be seeking to invest a large amount of money,� Bragin said. Russia may be interested in buying bonds backed by the Canadian government or high-quality corporate debt, he said, and �the global economic recovery will boost prices for natural resources, strengthening the Canadian dollar.�

Canada�s dollar, nicknamed the loonie, appreciated to the highest in a week after the Russian announcement. The currency strengthened as much as 1.2 percent to C$1.0453 per U.S. dollar, the highest since Nov. 18, and was up 1 percent at 8:07 a.m. in Toronto, from C$1.0580 yesterday.

Shield Reserves

Russia�s decision reflects a desire to shield reserves against the dollar�s decline after the U.S. currency lost 13.3 percent against the euro in the past 12 months, making it the worst performer against Europe�s single currency of the 16 major currencies tracked by Bloomberg in the period.

The world�s biggest energy supplier is increasing foreign reserves in an effort to stem gains in the ruble. The Russian currency gained 8.7 percent against the dollar in the past three months, making it the second-best performer of the 26 emerging market currencies tracked by Bloomberg.

The ruble was little changed against the dollar and trading at 28.7915 at 5:20 p.m. in Moscow. Against the euro, the ruble lost 0.7 percent to trade at 43.4213.

Russia is in talks with India and Brazil to use their currencies in trade, First Deputy Central Bank Chairman Alexei Ulyukayev said last month. Russia already has agreements that allow the use of the ruble and yuan in cross-border trade, he said.

Gold

Ulyukayev said on Sept. 29 Russia will avoid diversifying into Australian and Canadian dollars on liquidity concerns.

Russia�s reserves, the world�s third largest, are currently made up of 47 percent U.S. dollars, 41 percent euros, 10 percent pounds and 2 percent yen. The country keeps about 35 percent of its international reserves in U.S. Treasury debt.

Russian holdings of U.S. Treasuries gained $200 million in September to $121.8 billion, the most since May and an increase of more than 22 percent since September 2008, according to a Treasury Departmentreport released on Nov. 17.

The central bank increased its gold holdings by 2.6 percent last month. The bullion reserve rose to 19.5 million ounces in October from 19 million ounces the previous month.

Gokhran, the state precious-metals repository, plans to sell 30 metric tons of gold to Bank Rossii by the end of the year, Finance Minister Alexei Kudrin said on Nov. 18, according to the ministry�s Web site. The central bank is ready to buy all gold sold, RIA Novosti said two days earlier, citing Ulyukayev.

�The central bank has in the course of several years replenished its supply of gold with the goal of diversifying our gold and foreign-currency reserves,� Chairman Sergei Ignatiev told reporters in Moscow on Nov. 18. Gold�s share in reserves has increased faster in 2009 than in prior years, he said.

[big_fella1]

[Cerberus]

[Palladium]

The UDX may make a temporary dead cat bounce comeback, but the US$ is going DOWN long term! Saying Y86 is a top is like saying gold won't go any further up because it's $1200/oz. Wrong! I was thinking $1200/oz by Christmas. The way things are going, it may be $1500 by Christmas. The UDX may go as low as the 60's or 50's against the Yen. It will see 200 (and more) against the Euro as well.

Leaving the US$ for Yen or Euro is like leaving a quickly sinking boat for a slower sinking boat, but I'd rather be in either one than the US$ or Won at this time if I can help it. Longer term, the Loonie is a good currency, I'm wondering about the next few months, not years.

[Anon]

[Cerberus]

I suspect what he means by that is that the Euro included a bunch of countries it had no business including. They were always the sick men of Europe, their currencies were always crappy, their debt load high and their interest rates high.

The introduction of the euro to these places created a flurry of extremely cheap money, all funded on the backs of Germans and Frenchmen.

When times were good these were merely boils on the butt of the Euro, but now when times aren't so good and the economies of those respective countries still being their crappy selves, these boils have become serious lesions. It's possible (though unlikely) that the lesions will become so dangerous they'll have to be cut off.

The lesions would be called called Spain, Portugal, Greece, Italy and Ireland.

at least Frankfurt isn't exposed to the British peso. (yes I know that's not the currency's name, but it may as well be)