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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: N who wrote (24484)	8/17/1998 11:17:00 AM
From: N	Read Replies (1) \| Respond to of 94695

Another article says Russia did devalue South China Morning Post 8/17: Russia announced a devaluation of up to 50 per cent in the rouble on Monday, placing regional currencies under fresh pressure. With immediate effect, the Central Bank in Moscow lowered the corridor in which it supports the rouble, from about 6.3 to the US dollar to 9.5, the Interfax news agency reported. The widened band will be maintained until the end of the year. The government also imposed a 90-day moratorium on foreign debt repayments. In Hong Kong, Warburg Dillon forex strategist Cliff Tan said Russia's dramatic move would put short-term pressure on Asian currencies. ''Widening the band means they'll let their currency slide and work on a restructuring of GKO [domestic] debt,'' said Mr Tan. ''In the short run there will be further pressure on Hong Kong dollar forwards, the Chinese yuan, and the Korean won because of [Korea's] proximity to Russia.'' Korean sovereign bonds would also come under pressure, he said. not good signs... so this is the deal the Central Bank and Finance Ministry made? Whether the pressure would persist in the longer term depended on an economic restructuring plan in Russia... Central Bank chairman Sergei Dubinin said the government's actions were designed to help Russian citizens and domestic producers and hurt ''financial speculators'' who have been fleeing Russian markets for months, Interfax said. Finance Minister Mikhail Zadornov said the devaluation would help the government pay out overdue salaries and spur investment in industry...