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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG

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To: Wade who wrote (1123)	12/6/2003 6:46:57 PM
From: Wade	Read Replies (1) of 48092

Just found this news to explain the reason why S. A. government didn't do anything ....about Rand's strength. Looks like this was created by the professional currency traders. George Soro commented that Rand was too strong, which was not good for the S. A. economy on Friday. Rand took a break instantly. I wonder what would be in Soro's mind this time. Manuel will not intervene over volatile rand Currency slumps as dollar recovers FINANCE Minister Trevor Manuel and Reserve Bank governor Tito Mboweni reiterated yesterday that they would not intervene to influence the level of the rand. This was despite the heightened volatility in the currency, which has caused havoc with business planning decisions. Their comments came as the rand reversed its 20c gain against the dollar on Wednesday when it reached a 46-month high of R6,09. It slumped to R6,30 yesterday as the dollar strengthened against the euro. Manuel said yesterday that SA could not afford to follow China's example and peg its currency to the dollar in order to create a stable exchange rate. SA had neither the foreign exchange reserves nor the scope to increase taxes to take on speculators. Mboweni said most significant countries in the world operated a free-floating exchange rate regime, which meant their currencies were determined by the supply and demand for these currencies. He said technical trading, where automatic transactions to buy or sell a currency are triggered if the currency reaches a certain level, also played a part in currency movements. About 30% of the foreign exchange transactions in the rand occurred offshore, he said. Both men's statements at the Cape Town Fashion Festival 2003 Imbizo came soon after the central bank released its third quarterly report highlighting the extent to which speculative forex transactions were causing the wild swings in the currency. According to the report, the net average daily turnover in the domestic market for foreign exchange was $10,6bn in the third quarter the highest quarterly average since the second quarter of 1998, at the time of the Asian currency crisis. Foreigners were the main participants in the market, accounting for an average daily turnover of $7,2bn. The Bank's activity in the foreign exchange market is miniscule by comparison, with Mboweni revealing last week that the Bank had purchased $1bn in the forex market during November. Mboweni said yesterday that price stability would contribute to a better business environment. More reports: Page 2 Dec 05 2003 07:10:41:000AM Charlotte Mathews and Nasreen Seria

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