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Microcap & Penny Stocks : Madera International - Symbol WOOD -- Ignore unavailable to you. Want to Upgrade?

To: Spider Valdez who wrote (1584)	3/30/1999 11:53:00 AM
From: Henry Volquardsen	Respond to of 1979

your welcome. I've been in foreign exchange for 20+ years. I don't have specific knowledge of Madera. But if this is what they say they do it is certainly feasible. In fact a great many Brazilian exporters operate in such a manner so it would not be unusual.

To: Spider Valdez who wrote (1584)	3/30/1999 12:05:00 PM
From: Dean Dumont	Respond to of 1979

Education time. What you are stating is a deriv's deal. Pretty plan vanilla stuff possibly. its called a currency swap. Bank A (US bank) needs Brazilian currency. Bank B a (Brizilian bank) needs dollars. bank a is the US Subsid. bank b is the Braz. Sub So what do they do Gary? How does it work. Are you trying to say that these companies deal in derivatives? Currency Swaps, or Currency Options? US DOLLARS----> Bank A<------------------------->Bank B <----Braz. Currency Bank B<------------------------->Bank A Now, what are they two banks in this transaction going to do to 1. Hedge the possibility of a currency swing? 2. What interest reate are they going to use? 3. Who are the counter parties? $10,000,000 @ 11% bank A ------------------------> Bank a 100,000,000 @ 15% bank B ------------------------> bank b OR $ loan Bank A ------------------> Bank B Brazilian Loan Bank A <------------------ Bank B So how are these companies getting US dollars into Brazil? Just a question now.