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Topic: Safe Currency (Read 1556 times)

legendary
Activity: 1596
Merit: 1030
Sine secretum non libertas
February 20, 2014, 10:49:51 AM
#22
Mongolian Tugrik is like a rock.
hero member
Activity: 531
Merit: 501
February 03, 2014, 03:49:22 PM
#21
http://uk.reuters.com/article/2014/02/03/uk-europe-banks-emergingmarkets-idUKBREA121AP20140203

Quote
European banks have $3 trillion of exposure to emerging markets

(Reuters) - European banks have loaned in excess of $3 trillion (1.83 trillion pounds) to emerging markets, more than four times U.S. lenders and putting them at greater risk if financial market turmoil in countries such as Turkey, Brazil, India and South Africa intensifies.

The risk is most acute for six European banks - BBVA, Erste Bank, HSBC, Santander, Standard Chartered, and UniCredit - according to analysts.


But the exposure could be a headache for the industry as a whole, just as it faces a rigorous health-check by the European Central Bank, aiming to expose weak points and restore investor confidence in the wake of the 2008 financial crisis.

"We think EM (emerging markets) shocks are a real concern for 2014," said Matt Spick, analyst at Deutsche Bank. "When currency (volatility) combines with revenue slowdowns and rising bad debts, we see compounding threats to the exposed banks."

The Deutsche Bank analysts said the six most exposed European banks - which they did not name - had more than $1.7 trillion of exposure to developing markets.

In recent weeks, emerging market currencies have come under fire as China's growth slows and the U.S. Federal Reserve winds down its stimulus programme, with investors selling developing market assets in anticipation of higher U.S. interest rates.

In a bid to protect currencies, interest rates have been hiked in Turkey and elsewhere, but investors remain nervy, especially around the so-called "Fragile Five" economies of Turkey, Brazil, India, Indonesia and South Africa.

An emerging markets crisis could hit banks in a variety of ways - a collapse in local currency can hurt reported earnings or capital held in the country; loan losses can jump as interest rates rise; or income from capital markets activity or private banking can fall.

European banks' exposure varies from country to country. BBVA (BBVA.MC) and UniCredit (CRDI.MI) have big exposure to Turkey, Santander (SAN.MC) is most exposed to Brazil, while Standard Chartered (STAN.L) and HSBC (HSBA.L) would be hurt by problems in India and Indonesia. Barclays (BARC.L), meantime, would be most exposed to South African problems, analysts said.

However, they said the impact of apparently individual problems, such as inflation in Venezuela or lower growth in India, could quickly spread into wider concern among investors, and had already contributed to a 7 percent drop by Europe's bank index .SX7P in the last two weeks.

The biggest risk is that a jump in interest rates sparks defaults on loans, analysts added. Often a credit shock follows or replaces a currency shock, as happened in Argentina in 1999-2002.

EXPOSURE

Europe's banks have cut their overseas loans since the financial crisis and substantially increased the amount of capital they hold, meaning they have a better cushion to absorb losses than in the past.

But they still have about 12 percent of their assets in emerging markets, and about a quarter of their earnings come from the region as often the businesses there are "unusually profitable", Deutsche Bank's Spick said.

European banks had $3.4 trillion of loans to developing countries at the end of September, according to data from the Bank for International Settlements.

British banks had a $518 billion exposure to the Asia-Pacific region, Spanish banks had $475 billion of loans to Latin America, and banks in France and Italy each had $200 billion of exposure to developing economies in Europe.

Among the most exposed banks, Standard Chartered makes more than 90 percent of its earnings from Asia, Africa and the Middle East, and warned in December that its 10-year record of earnings growth would likely end.

BBVA had 41 billion euros ($55 billion) of exposure to Mexico - which last year made up 80 percent of group profits - and 52 billion euros of loans to South America.

Santander had 132 billion euros of loans to Latin America at the end of last year, half of which were in Brazil. Brazil contributed 23 percent of group earnings last year, and the rest of Latin American contributed another 24 percent.


Analysts said emerging market turmoil could also have a broader, indirect impact on revenues in investment banking and wealth management.

"A significant increase in volatility in EM bonds and FX may result in volumes drying up and hence a potential for a material slowdown in EM fixed income revenues," said JPMorgan analyst Kian Abouhossein.

He estimated the investment banks of HSBC and Standard Chartered each generated $2.1-2.2 billion from emerging markets, while Credit Suisse (CSGN.VX) and Deutsche Bank (DBKGn.DE) made about $1.1 billion each.

Euro banks will have more capital black holes to fill if emerging markets keep tanking. EU tax payers should be ready to give their banks another helping hand.
legendary
Activity: 1918
Merit: 1018
February 03, 2014, 03:41:08 PM
#20
More important things are happening closer to home.

Take a look at the Dow and the Nasdaq. The debt limit is going to be reached again this month. Yellen has just been sworn in at the Fed and she has no choice; she can either watch asset prices collapse, or she can start reversing and increasing QE.

Interesting times.

They talk about tapering but they won't really taper, they are still buying 75B/month + interests reinvested + interest rates at zero and she believes in easy money so she will increases the monetary supply and the dollar will finish by collapsing

When the dollar will collapse, every real asset will seem pretty sweet compared to having dollars, that should particularly include Bitcoin
sr. member
Activity: 308
Merit: 251
Giga
February 03, 2014, 03:24:00 PM
#19
isn't Ukraine and its population obsessed with the Euro, i mean they are undergoing a semi revolution just because they want to join the Euro and their government doesn't wanna ? A population that can't see through the tyranny of the Euro is doubtful to adopt Bitcoin.
legendary
Activity: 1176
Merit: 1010
Borsche
February 03, 2014, 03:12:45 PM
#18
Please prepare yourself for the next bitcoin spike.  Probably will reach $2000 in a week or two.  Since the Ukraine is collapsing under central bank incompetence, there will soon be an exodus to bitcoin. 
http://money.cnn.com/2014/02/03/news/economy/ukraine-currency-politics/index.html?hpt=hp_t3 


Is there actually any word or sources on whether Ukrainians have actually been buying Bitcoin?

some, definitely, but 99% buy USD.
sr. member
Activity: 378
Merit: 250
Super Smash Bros. Ultimate Available Now!
February 03, 2014, 03:10:25 PM
#17
More important things are happening closer to home.

Take a look at the Dow and the Nasdaq. The debt limit is going to be reached again this month. Yellen has just been sworn in at the Fed and she has no choice; she can either watch asset prices collapse, or she can start reversing and increasing QE.

Interesting times.
hero member
Activity: 840
Merit: 1000
February 03, 2014, 02:48:57 PM
#16
just whispers of hyperinflation today - mass exodus from national currency to follow.  I am providing this warning early.  In two weeks once BTC goes over 1500 (two weeks) you can thank me with a BTC tip later.

Have you any previous examples where you can show that you have clearly anticipated market action?

Yep, they are going to adopt a medium of exchange which depends exclusively on the Internet to work... How stupid you are?

If there were to be a financial collapse a lot of Ukrainians who caught wind of it early enough may well plough a lot of funds into Bitcoin whilst they still could, if they could.
vip
Activity: 756
Merit: 504
February 03, 2014, 01:33:33 PM
#15
Please prepare yourself for the next bitcoin spike.  Probably will reach $2000 in a week or two.  Since the Ukraine is collapsing under central bank incompetence, there will soon be an exodus to bitcoin. 
http://money.cnn.com/2014/02/03/news/economy/ukraine-currency-politics/index.html?hpt=hp_t3 


Is there actually any word or sources on whether Ukrainians have actually been buying Bitcoin?
just whispers of hyperinflation today - mass exodus from national currency to follow.  I am providing this warning early.  In two weeks once BTC goes over 1500 (two weeks) you can thank me with a BTC tip later.

Yep, they are going to adopt a medium of exchange which depends exclusively on the Internet to work... How stupid you are?
hero member
Activity: 840
Merit: 509
February 03, 2014, 01:21:18 PM
#14
Please prepare yourself for the next bitcoin spike.  Probably will reach $2000 in a week or two.  Since the Ukraine is collapsing under central bank incompetence, there will soon be an exodus to bitcoin.  
http://money.cnn.com/2014/02/03/news/economy/ukraine-currency-politics/index.html?hpt=hp_t3  


Is there actually any word or sources on whether Ukrainians have actually been buying Bitcoin?
just whispers of hyperinflation today - mass exodus from national currency to follow.  I am providing this warning early.  In two weeks once BTC goes over 1500 (two weeks) you can thank me with a BTC tip later.

Well I don't listen to wild speculation, but I hope you're right, but I'm very sceptical.
Don't listen to me - go read the news.  Ukraine isn't some tiny little no-where-ville.  The fucking place is about to collapse and it is a big deal.  The bank is on the brink of disaster and money flight will be triggered soon.  Cyprus proved BTC is a safety currency in these kinds of crises.  Cyprus and Ukraine both have a heavy Russian influence.  Check back here soon to learn if I was right.

I'm not talking about the economy in Ukraine, but the price of Bitcoin rising because of it.
hero member
Activity: 874
Merit: 1000
February 03, 2014, 01:16:16 PM
#13
Please prepare yourself for the next bitcoin spike.  Probably will reach $2000 in a week or two.  Since the Ukraine is collapsing under central bank incompetence, there will soon be an exodus to bitcoin.  
http://money.cnn.com/2014/02/03/news/economy/ukraine-currency-politics/index.html?hpt=hp_t3  


Is there actually any word or sources on whether Ukrainians have actually been buying Bitcoin?
just whispers of hyperinflation today - mass exodus from national currency to follow.  I am providing this warning early.  In two weeks once BTC goes over 1500 (two weeks) you can thank me with a BTC tip later.

Well I don't listen to wild speculation, but I hope you're right, but I'm very sceptical.
Don't listen to me - go read the news.  Ukraine isn't some tiny little no-where-ville.  The fucking place is about to collapse and it is a big deal.  The bank is on the brink of disaster and money flight will be triggered soon.  Cyprus proved BTC is a safety currency in these kinds of crises.  Cyprus and Ukraine both have a heavy Russian influence.  Check back here soon to learn if I was right.
hero member
Activity: 840
Merit: 509
February 03, 2014, 01:12:40 PM
#12
Please prepare yourself for the next bitcoin spike.  Probably will reach $2000 in a week or two.  Since the Ukraine is collapsing under central bank incompetence, there will soon be an exodus to bitcoin. 
http://money.cnn.com/2014/02/03/news/economy/ukraine-currency-politics/index.html?hpt=hp_t3 


Is there actually any word or sources on whether Ukrainians have actually been buying Bitcoin?
just whispers of hyperinflation today - mass exodus from national currency to follow.  I am providing this warning early.  In two weeks once BTC goes over 1500 (two weeks) you can thank me with a BTC tip later.

Well I don't listen to wild speculation, but I hope you're right, but I'm very sceptical.
legendary
Activity: 1918
Merit: 1018
February 03, 2014, 12:51:38 PM
#11
Don't forget Turkey, Thailand, Argentina, South Africa, Russia, China.................

When the Dollar will crash along with other big fiat currencies, having bitcoins will seem sweet, its price in fiat money will skyrock and its price in other valuables good also
hero member
Activity: 722
Merit: 500
February 03, 2014, 12:47:55 PM
#10
Please prepare yourself for the next bitcoin spike.  Probably will reach $2000 in a week or two.  Since the Ukraine is collapsing under central bank incompetence, there will soon be an exodus to bitcoin. 
http://money.cnn.com/2014/02/03/news/economy/ukraine-currency-politics/index.html?hpt=hp_t3 


Is there actually any word or sources on whether Ukrainians have actually been buying Bitcoin?
just whispers of hyperinflation today - mass exodus from national currency to follow.  I am providing this warning early.  In two weeks once BTC goes over 1500 (two weeks) you can thank me with a BTC tip later.

Well ,you sig says it all  Grin
hero member
Activity: 874
Merit: 1000
February 03, 2014, 12:39:25 PM
#9
Please prepare yourself for the next bitcoin spike.  Probably will reach $2000 in a week or two.  Since the Ukraine is collapsing under central bank incompetence, there will soon be an exodus to bitcoin. 
http://money.cnn.com/2014/02/03/news/economy/ukraine-currency-politics/index.html?hpt=hp_t3 


Is there actually any word or sources on whether Ukrainians have actually been buying Bitcoin?
just whispers of hyperinflation today - mass exodus from national currency to follow.  I am providing this warning early.  In two weeks once BTC goes over 1500 (two weeks) you can thank me with a BTC tip later.
full member
Activity: 154
Merit: 100
February 03, 2014, 12:30:46 PM
#8
Don't forget Turkey, Thailand, Argentina, South Africa, Russia, China.................

Unfortunately THB is not loosing enough value was getting 75 to the £ 7 years ago now only 54  Sad
hero member
Activity: 840
Merit: 509
February 03, 2014, 12:20:09 PM
#7
Please prepare yourself for the next bitcoin spike.  Probably will reach $2000 in a week or two.  Since the Ukraine is collapsing under central bank incompetence, there will soon be an exodus to bitcoin. 
http://money.cnn.com/2014/02/03/news/economy/ukraine-currency-politics/index.html?hpt=hp_t3 


Is there actually any word or sources on whether Ukrainians have actually been buying Bitcoin?
hero member
Activity: 874
Merit: 1000
February 03, 2014, 12:17:10 PM
#6
Don't forget Turkey, Thailand, Argentina, South Africa, Russia, China.................
The 'fragile 5'
hero member
Activity: 601
Merit: 500
Vote 4fryn :)
February 03, 2014, 12:16:34 PM
#5
lol at these pumpers failing at doing that, pumping the currency.
legendary
Activity: 1806
Merit: 1521
February 03, 2014, 11:56:42 AM
#4
Don't forget Turkey, Thailand, Argentina, South Africa, Russia, China.................

Wait until Russia announces how many billion they've lost as a result of the olympics...
hero member
Activity: 531
Merit: 501
February 03, 2014, 11:44:36 AM
#3
Don't forget Turkey, Thailand, Argentina, South Africa, Russia, China.................
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