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

To: N who wrote (24496)	8/17/1998 11:37:00 AM
From: Philipp	Read Replies (1) \| Respond to of 94695

Nancy: I agree with your earlier statement that "letting it float" is just another name for "devaluation"; the difference is just on how the new value is decided (the market instead of the government). In the article you quoted: In Hong Kong, Warburg Dillon forex strategist Cliff Tan said Russia's dramatic move would put short-term pressure on Asian currencies. That is just ridiculous. 1. Russia's move was not particularly dramatic, it was widely expected to occur over the weekend. Just the details were not clear. 2. While the threat of a devaluation of Asian currencies put pressure on the Russian ruble, the converse is not true (perhaps psychologically, but I even doubt that). Also this article does not know any arithmetic. Depending on how you want to calculate it, it corresponds to a devaluation of 25 to 33 % maximum (but I noticed that Bloomberg made the same mistake earlier today). Cheers, Phil