Tuesday, January 1, 2013

Currency Changes

This was sent to my email and I thought I would share for those watching the currency changes around the world. Seems to be coming full circle. B

Countries that have announced currency changes (xxxx spoke of)

This came in last night at the end of the bits'n pieces thread from xxx, a member with only 3 posts since 2011, but not only confirms what xxxx has told us about a few countries already announcing they would rv their currency on 2 Jan, xxx also deserves an award for an amazing 3rd post!!! KUDOS xxx!! THANK YOU SO MUCH!!!

"Zambia zeroes in on new banknotes" by René Vollgraaff, 2012-11-25 16:15:00 WHILE South Africans get used to the new banknote series, with the Big Five moved to the back of the notes, Zambia is preparing to remove three zeros from its money. The Bank of Zambia has announced that the kwacha will be rebased by dividing it by 1,000, dropping three zeros off the currency, on January 1. * This article was first published in Sunday Times: Business Times http://www.bdlive.co.za/world/africa...-new-banknotes

Zambian Kwacha Best Performer as Central Bank Supports Currency - 12/24/12 Zambia’s kwacha strengthened the most in more than a year as the central bank was said to support the currency of Africa’s biggest copper producer. The kwacha appreciated 3.8 percent, the most since September 2011, to 4,930 a dollar as of 3:57 p.m. in Lusaka, the capital. That’s the best performance among all currencies tracked by Bloomberg. The currency has advanced 6.3 percent in the past three days. The Bank of Zambia last week reduced the amount of foreign currencies local banks are allowed to hold. The government also wants to STRENGTHEN THE KWACHA in the run-up to the Jan. 1 rebasing exercise, which removes three zeros from the currency, Joseph Lungu, a Lusaka-based analyst with Intermarket Securities Ltd., said by phone. http://www.bloomberg.com/news/2012-1...-currency.html

Rebasing exercise will be smooth – ZACCI 12/26/12THE Zambia Association of Chambers of Commerce and Industry (ZACCI) is confident that the Zambian economy will be able to grasp the Kwacha rebasing exercise positively effective January 1, 2013.We believe it is now on top of everyone’s agenda to ensure that they join the transition to run from January 1 to June 30, 2013,” he said. http://www.times.co.zm/?p=24218

(Times of Zambia) LuSE closes trading 12/25/12 THE Lusaka Stock Exchange (LuSE)has closed trading to allow implementation of the rebasing exercise effective January 1, 2013. According to a statement posted by Inter Market Securities Investment analyst Joseph Lungu, the last day of trading on LuSE was Friday December 21, 2012. From December 24, 2012 to January 1, 2013 the MARKET WILL REMAIN CLOSED and only open on January 2, 2013...This is to facilitate for the rebasing which is effective January 1, 2013″, Mr Lungu said. http://www.times.co.zm/?p=24130

Fiji unveils new currency without British Queen's portrait Updated: 2012-12-12 SUVA, December 12(Xinhua) -- Fijian President Ratu Epeli Nailatikau on Wednesday unveiled the country's new banknotes and coins on which British Queen Elizabeth II's portrait no longer features, in a bid to create the country's "own identity" and show "it is now time to move forward."....The new notes and coins are set to come into circulation with effect from January 2, 2013.

December 2012, Agus Marto Start So Socialize Rp 1,000 to Rp 1 Friday, 30/11/2012 17:59 PM
Jakarta - Finance Minister Agus Martowardojo will disseminate the currency redenomination, or three zero reduction in dollars without reducing its value, from December 2012 to March 2013to all corners of Indonesia...."If there will be a simplification of the value of the rupiah, does not affect the purchasing power. http://translate.google.com/translat...us-marto-mulai

State Bank announced the suspension of cotton money circulation of 10,000 and 20,000 (09/29/2012) On 09.28.2012, the State Bank of Vietnam (SBV) has announced No. 293/TB-NHNN announced the suspension cotton money circulation of 10,000 and 20,000. Accordingly, the implementation of Decision No. 1285/QD-TTg 17/09/2012 of the Prime Minister, the central bank announced after the date of 01.01.2013, cotton coin 10,000 VND and 20,000 VND all values stored operating in the territory of Vietnam. Circulation from the time of suspension (01/01/2013), organizations and individuals is horizontal change currency to the value of money in circulation issued by the central bank at the Exchange State Bank, more Branch Bank, credit institutions and branches of foreign banks and the State Treasury in the provinces. SB advised to organizations and individuals for implementation.

Egypt Adopts New Foreign-Currency System December 29, 2012, 11:56 a.m. ET
CAIRO—Egypt will begin a new system for buying and selling foreign currency, the country's central bank said Saturday night, as financial policy makers struggle to plug fast-depleting foreign-exchange reserves.
Egypt's holdings of foreign cash have dropped by more than $20 billion since a revolution early last year ousted the president and ushered in two years of political chaos.
Reserves fell to $15.04 billion at the end of November, only slightly above the three months of import cover that the International Monetary Fund recommends as a minimum foreign-currency cushion.
"The current level of foreign-currency reserves represents the minimum and critical limit," said a statement from the central bank disclosing the new auction system.
In the brief email to reporters, the central bank said the new foreign-exchange system would take effect Sunday. It didn't say how the new system would work.
The statement said the new system will allow the bank to channel currency toward critical applications such as safeguarding "Egypt's reputation in international financial markets and to cover imports of strategic commodities."
However, the central bank was cautious to note that the new system "will not affect the dollar on the interbank system, but will complement and support it."
Egypt's flat-lining economy stormed to the center of public concern once again this week. Rumors of a long-awaited currency devaluation sent bank customers rushing to transfer their Egyptian pounds into U.S. dollars, adding further stress to the country's already-beleaguered banks.
The downward pressure pushed the Egyptian pound to a new low, reaching 6.19 to the U.S. dollar, the weakest level since December 2004.
Meanwhile, ratings company Standard & Poor's Corp. docked Egypt's sovereign investment grade to "B-" from "B" on Monday, citing continued political strife.
In what appeared to be an effort to calm mounting fears of economic collapse, Egypt President Mohammed Morsi addressed the country's upper house of parliament Saturday.
Mr. Morsi blamed the continuing instability on his opponents and said that, despite the gloom surrounding Egypt's economy, foreign-exchange revenue from tourism and the Suez Canal had risen. http://online.wsj.com/article/SB1000...googlenews_wsj

Egypt's leader sees currency stabilizing "within days"CAIRO | Mon Dec 31, 2012 8:55am EST (Reuters) - Egypt's pound fell to a record low on Monday as the president signaled his government would allow it to depreciate slowly for several more days to stop a drain on foreign reserves that has driven the economy into crisis since the fall of Hosni Mubarak. ....

Basel III: Gold's Status as Tier 1 Asset Restored + Bank of Japan Monetary Policy, Competitive QE 11/08/12Niela Cambone interviews Patricia Mohr, V.P. and creator of Scotibank's Commidity Price Index, talks Bank of Japan, Basel III (at approx 4 min says Niela says "you mentioned something we should be paying attention to is Basel III regulations kicking in Jan (2013) and asks, how might that impact the yellow metal? Mohr says, that's quite interesting as gold is going to regain it's full status as a financial asset. Banks will be able to hold gold as tier 1 capitol and very interesting development for gold. http://www.youtube.com/watch?v=xHL1rkXyDpE

Chinese Gold to Double in Value With Basel III 6/9/12 A simple way to prop up the banks and reduce risk in the global economy would be for Basel III to revalue gold to tier-1. The new rules are expected to be announced in January 2013. Until then, look for the Chinese to support the market and the constant stream of macro catastrophes to push up the price of precious metals. http://cmt-group.com/chinese-gold-go...ith-basel-iii/
Big Changes Ahead: Gold Just Became Money Again 8/17/12On June 18, the Federal Reserve and FDIC circulated a letter to banks that proposes to harmonize US regulatory capital rules with Basel III. BASEL III is an accord that tells a bank how much capital it must hold to safeguard its solvency and overall economic stability. It's a global standard on bank capital adequacy, stress testing, and market liquidity risk. Here's the important bit: At the top of the proposed changes is the new list of "zero-percent risk weighted items," which now includes "gold bullion," right after "cash." http://news.goldseek.com/GoldSeek/1345229824.php

These don't indicate a time frame, but "who knows" also Zimbabwee article is from 2011, but note - they claim to be sitting on trillions in gold reserves!....hummm

Zimbabwe to Consider Gold-Backed Dollar, States "US Dollar’s Days Are Numbered" May 15, 2011 By The Doc
Will Zimbabwe be the first country to lose the chains of fiat currency? Zimbabwe’s central bank head Gideon Gono today called for the country to “urgently” consider adopting a gold-backed Zimbabwean dollar and dropping the country’s use of the US dollar. While Russia, China, and the Arab nations have all been speculated as the first nation to remove themselves from the US dollar ponzi- could Zimbabwe, a country with VERY recent hyperinflation experience end up being the first nation to call the US dollar a duck? (If it walks like a duck, and talks like a duck….) http://www.silverdoctors.com/zimbabw...-are-numbered/

(Article referenced from Silverdoctors - New ZimbabweeTHE central bank says the country must consider adopting a gold-backed Zimbabwean dollar warning that the US greenback’s days as the world’s reserve currency are numbered.
Government ditched the Zimbabwe dollar in 2009 after it had been rendered worthless by record inflation levels and adopted multiple foreign currencies with the US dollar, the South African Rand and the Botswana being the most widely used.
Finance minister Tendai Biti says the country needs at least six months import cover and a sustainable track-record of economic growth, inflation stability and above 60 percent capacity utilisation in industry before the Zim dollar can be brought back into circulation.
However central bank chief, Dr Gideon Gono said the country should consider adopting a gold-backed currency.
“There is a need for us to begin thinking seriously and urgently about introducing a Gold-backed Zimbabwe currency which will not only stable but internationally acceptable,” he said in an interview with state media.
“We need to re-think our gold-mining strategy, our gold-liberalisation and marketing strategies as a country. The world needs to and will most certainly move to a gold standard and Zimbabwe must lead the way.”
Gono said the inflationary effects of United States’ deficit financing of its budget was likely to impact other countries to leading to a resistance of the green back as a base currency.
“The events of the 2008 Global Financial Crisis demand a new approach to self reliance and a stable mineral-backed currency and to me, Gold has proven over the years that it is a stable and most desired precious metal,” Gono said.
“Zimbabwe is sitting on trillions worth of gold-reserves and it is time we start thinking outside the box, for our survival and prosperity.”

Diplomat inadvertently reveals China amassing gold to shore up the yuan: Leeb Marc Howe | December 20, 2012
Veteran investor and commodities expert Stephen Leeb claims a Chinese diplomat inadvertently admitted to him that the Middle Kingdom is amassing large amounts of gold bullion for the specific purpose of backing the yuan.
In an interview with King World News Leeb says the Chinese are well aware of the ramifications of a protracted and profligate money printing by Western central banks, and as a consequence they are "hoarding…critical resources."
Leeb's assertion is underscored by a recent encounter with a Chinese diplomat, during which Leeb says the visiting delegate made an inadvertent admission of China's intentions vis-a-vis gold: was just speaking to a Chinese diplomat and I said to their diplomat, ‘Your two most important commodities are water and gold.’ And this diplomat said to me, ‘Yes, we need gold to back up the yuan.’Well this diplomat realized very quickly they had made a terrible mistake in admitting that and began to back off and stated, ‘No, it’s not to back the yuan. It’s because of jewelry.’ But it was too late, the horse had left the barn so-to-speak.
According to Leeb the Chinese have already embarked upon a resource war in a bid to establish themselves as a powerhouse global economy, with gold bullion playing a pivotal role in their acquisition strategy. http://www.mining.com/diplomat-says-...an-leeb-36464/

This one is a stretch but I'll throw it in just in case

USSR to rise from ashes through joint Eurasian currency Posted by EU Times on Nov 20th, 2012
The creation of the supranational currency within the scope of the Customs Union is inevitable, Prime Minister of Armenia, Tigran Sargsyan, believes. According to him, this should be the next stage of integration within the organization, which makes sense from the point of view of simplification of currency circulation in transfers. The new currency may see the light on January 1, 2015... “Either way, it is believed that the new currency will appear on 1 January 2015, although possibly earlier. Political sovereignty can hardly be questioned. It is unlikely that it will be the Russian ruble. Most likely, it will be a new Eurasian currency, and, consequently, we will have a new Eurasian Central Bank. Of course, it will be a local currency, because the size of combined economies is still a lot smaller than the economy of the United States, China, or the European Union. However, it will really mark the actual denunciation of Belovezha Accords and restoration of the Soviet Union, albeit in a new version 2.0 and on absolutely new market and capitalist principles,” the expert concluded.

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