Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Kai Wang who wrote (33783)	6/11/1998 6:20:00 PM
From: Peter V	Read Replies (1) \| Respond to of 50808

Indonesia: <<(If you are a traveller, you pay much much less in US dollar,if you are willing to take that risk).>> Maybe now that is true, but in December in Bali, anyplace that had rates tied to the dollar remained high, while the Rp-based places were dirt cheap (6800 Rp/dollar at the time). I was staying in a budget place and paid 20,000 Rp per night, including breakfast, for two people! That's $3.00! At those rates, I could retire today. By comparison, the "luxury place" that had dollar-tied rates was $40 US for a large non-air-con room without screens (but they gave us mosquito coils . . . ), and we switched to an even smaller room for $20 US, which took a fair amount of bargaining. But another luxury place off the main drag wanted only 40,000 Rp ($6 US). The hotels in the area, the ones that could be booked through a travel agent, were US$60 and up.

To: Kai Wang who wrote (33783)	6/11/1998 7:06:00 PM
From: John Rieman	Respond to of 50808

The Chinese will still have a trade surplus this year.................. insidechina.com Official Rules Out Yuan Devaluation BEIJING -- (Reuters) A Chinese foreign exchange official on Thursday ruled out a devaluation of the yuan, saying Beijing could find other ways to help exporters battered by the Asian financial crisis. On Wednesday China released figures showing exports in May registered their first decline in 22 months, raising new doubts about the stability of the Chinese currency. Liu Guangcan, an official at State Administration of Foreign Exchange, said in an article in the China Securities that China could ease the burden on exporters by such means as cutting interest rates and raising tax rebates. He said China probably would still achieve a trade surplus this year. "We believe that China will continue to post a surplus in its balance of payments this year," he said. "And that will provide a guarantee for a stable yuan." "There is no need for China to devalue the yuan, and it will not do so," he said. Yet on Beijing's currency black market, few dealers were willing to bet that Chinese leaders would stick by their pledge not to devalue the yuan, known as the renminbi. The dollar was being quoted on Thursday at 8.43 to the yuan, representing a premium over the official exchange rate of 8.28. "It was at 8.28 for most of 1997 and then went up to about 8.31 in November last year and has been rising ever since," said a black market dealer. "Come October or November it could hit nine," she said. "Demand for U.S. dollars is pretty strong because people are worried about the Chinese economy and renminbi," said an elderly woman dealer at one black market stall. "The dollar is strong, the Japanese yen is falling -- that's not good for the renminbi." Another dealer, who runs a clothes stall, noted that Premier Zhu Rongji had ruled out a devaluation. "But who knows, if you come back at the end of the year, you might get 10," he said. In a sign that large foreign companies in China are increasingly concerned about a yuan devaluation, they have been switching to yuan denominated loans from dollar loans, according to bankers in the Chinese capital. In his article, Liu pointed out that interest rates in China were already lower than those in other Asian countries and inflation was close to zero. This helped Chinese exporters make up for a loss of currency competitiveness. China's resumption of tax breaks this year for imports of high-technology goods by foreign funded projects would help boost foreign investment, he said. Long-term and stable foreign direct investment, which accounted for the bulk of capital inflows, meant China was in no danger from capital flight, Liu said. Limited convertibility of the yuan under and less developed capital markets would help curb flows of short-term speculative capital, he said. Besides, Liu said a devaluation of the Chinese currency would lead to rising friction among trade partners, he warned. Any devaluation of the yuan would not significantly boost China's exports because of the general slowdown in the global economy, he said. It would also trigger domestic inflation. Chinese exports in May fell a year-on-year 1.5 percent, according to customs figures. For the first five months of this year, exports grew 8.6 percent, far short of the 20.9 percent expansion achieved for the whole of last year. Nevertheless, China still recorded a trade surplus of $18.53 billion in the January-May period ( (c) 1998 Reuters)