| AT A GLANCE: G7 Finance Officials Aim To Curb Carry Trade
Finance ministers and central bank governors from Group of Seven countries met in Essen Germany Friday and Saturday. Top stories on that meeting follow: Finance ministers and central bankers from Europe and Japan Saturday launched a concerted effort to curb the growth of carry trades, which European officials believe have been a key factor in pushing the euro to record highs against the Japanese yen on the foreign exchange markets. Finance ministers and central bank governors from the Group of Seven leading industrialized economies Saturday said a move in China's effective foreign exchange rate is desirable. Finance ministers and central bankers from the Group of Seven leading industrialized countries Saturday opted for a light touch in dealing with potential risks stemming from hedge funds.
Parallel foreign exchange rate overheated
In April 1996, the government of President Rafael Caldera terminated an exchange control implemented in July 1994. Then, the official exchange rate for the US dollar accounted for VEB 290. In the parallel market, that emerged by means of Brady bonds and became the benchmark for most commodities, the US dollar was traded at VEB 465 -a big difference of 60 percent. Is it the same old story? Now, there is a parallel market where the foreign currency can be gotten legally in the unregulated trading without the need to resort to Cadivi, the Venezuelan government foreign exchange control board. This parallel market is based on trading of the stocks of telecommunications company Cantv at NYSE. There, the exchange rate stood at VEB 4,391 last February 1st -a 104-percent difference as compared with the official rate of VEB 2,150 per USD.
Canadian Dollar Declines as Short Bets Are Near Record High
Jan. 22 (Bloomberg) -- Canada's dollar declined the most in about a week, trading near a 14-month low, as short bets against the currency are near a record. Bets by hedge funds and other large speculators on a decline in the Canadian dollar exceeded wagers on a gain by 78,967 on Jan. 16, down from a record 84,906 a week earlier, according to the Washington-based Commodity Futures Trading Commission. The data, which is provided weekly, was released on Jan. 19. ``I'm not all that optimistic on the currency just looking at the degree to which the market looks bearish on the Canadian dollar,'' said Naomi Fink, chief North American currency strategist at BNP Paribas Securities SA in New York. The Canadian dollar fell to 85.03 U.S. cents at 10:10 a.m.
Crooks Currency Group Launches Currency Option Service
DELRAY BEACH, Fla., Jan. 23 /PRNewswire/ -- Crooks Currency Group today announced the introduction of a weekly currency options research alert, Crooks Currency Options. Crooks Currency Options (http://www.crookscurrencies.com/) is the first service of its kind, providing retail customers with consistently winning recommendations on currency options covering major currencies against the dollar. Jack Crooks, Founding Editor for Crooks Currency Group, uses his nearly 20 years of experience in the currency, equity, and futures arena to provide specific buy entry, and sell exit recommendations. Subscribers will receive a weekly e-letter with market commentary and weekly position summaries. Additionally, subscribers can expect two to three recommendations for trading currency per month, depending on market conditions.
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