| Venezuela May Enact New Dollar Limits, Sanguino Says (Update1)
Jan. 24 (Bloomberg) -- Venezuelan lawmakers may further restrict currency trading by banks outside official government channels in a bid to curb a surge in inflation, the National Assembly's financial committee chairman said. Officials will seek to limit the impact on consumer prices of the parallel exchange rate, where the dollar is almost 100 percent more expensive than the official rate of 2,150 bolivars per dollar, said Committee Chairman Ricardo Sanguino. Sanguino said swapping bolivar-and dollar-denominated bonds, which accounts for a portion of the country's unregulated trading and is still legal, may be restricted by the government. The currency dropped for a third straight day in unregulated trading. ``Trading dollar bonds is currently legal, but what's allowed in a given moment may not be allowed in a different circumstance,'' Sanguino, who is heading a congressional probe on illegal trading practices in the currency market, said at a news conference in Caracas.
Asian Stocks Advance Led By Higher Oil Prices; Oil, Financial Stocks Gain
(RTTNews) - The major markets in Asia are trading in the positive territory on Friday, led by oil related stocks and financial stocks. While Australian stock market is gaining led by oil related stocks such as Woodside and Santos, after prices of crude oil in overnight US market rose 3.5% to close at US$ 59.71 a barrel, stock markets in Japan and South Korea are gaining as a result of financial stocks such Mizuho Financial and Kookmin Bank. Merrill Lynch, in a recommendation to investors, has stated that share price of Mizuho Financial is cheaper in comparison to its steady earnings growth. Kookmin Bank, the largest lender in South Korea, has stated that it will pay higher dividend to its shareholders, raising its dividend yield for 12 months to more than 4%. However, the markets in Malaysia, Hongkong, China, and Indonesia are trading in the negative territory, while markets in South Korea, Singapore and Taiwan are trading in the positive territory with marginal gains.
Zimbabwe: Gono U-Turns On MTAs
IN a major policy u-turn, central bank governor Gideon Gono on Wednesday introduced new measures allowing money transfer agencies (MTAs) to dispense hard currency to recipients. The new policy reverses his 2004 decision which compelled recipients of foreign currency through money transfer agencies to receive the equivalent in local currency. .
Dollar rises against most currencies
NEW YORK (AFX) - The dollar rose against most major currencies Friday as investors positioned themselves ahead of a Group of Seven meeting of finance ministers. The 13-nation euro bought $1.3006 in afternoon New York trading, down from $1.3038 in New York late Thursday. The British pound dipped to $1.9503 from $1.9580. The Bank of England's decision Thursday to keep interest rates unchanged at 5.25 percent continues to weigh on the currency. At its previous meeting, the central bank surprised analysts with a quarter point hike. The dollar rose to 121.64 yen from 121.05 yen on expectations that weakness of the Japanese currency would not be a main focus at the G-7 meeting in Essen, Germany. The meeting ends Saturday. A wider examination of foreign exchange rates and their effect on economies appeared more likely.
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