Wednesday, February 4, 2009

Global Currency Watch

This particular currency doesn't matter but it is part of a chain that has more than likely just started. It was why things like gold look very appealing over the next few years. Thanks goes to Nathan.

http://www.ft.com/cms/s/0/29a859b2-f287-11dd-abe6-0000779fd2ac.html

Kazakhstan allowed the national currency to drop by almost one fifth of its value on Wednesday in a devaluation it blamed on falling world oil prices and the sharp depreciation of the Russian rouble.

and

Like Russia, Kazakhstan has been able to defend its currency using foreign exchange reserves built up during years of high demand for its exports, but falling oil revenues and competitive pressure from cheaper Russian goods raised expectations of the devaluation.

The [Russian] rouble has fallen by about 33 per cent against the dollar since last summer. Traders said this week could test how far the Russian central bank was committed to stabilising the rouble at a floor set last month.

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