Currency Devaluation??? Get your USD now

[daas]

Check RBC, I get through with $2000 US a few days ago. Admittedly, I know someone there

[Miktay]

On the point of deficits being a trend of developed countries



While deficits carry a negative connotation, in the overall scheme of things it can actually be a good thing.

Deficits imply that you cant balance your budget.

That may be ok in the short term or to finance longer term infrastructural development.

But as a method to finance current consumption expenditure theyre not good.

No person or government can escape the consequences of deficit financing indefinitely.

Deficit financing iz also inherently inflationary.

[The_Honourable]

If there is a devaluation coming this Budget day - Expect prices of everything Imported or with Foreign Input to Increase accordingly.

For a Long time now there has been a lack of Encouragement to "BUY LOCAL", lets see if it will come back to bite people in the rear.

Hope you all ready - Tiida new price might be $300,000.00

Governments do currency devaluations when the population least expects it. Since people looking out for it on budget day, it would not happen.

btw, found this nice piece of history:

In 1964 the Trinidad and Tobago dollar replaced the British West Indian dollar as the national currency. Eastern Caribbean dollars--the common currency of members of the Organization of Eastern Caribbean States (OECS--see Glossary) and pegged to the United States dollar at EC$2.70 equals US$1.00--and other currencies also circulated. From 1972 to 1976, the Trinidad and Tobago dollar was floated against the British pound sterling; after 1976, however, the Trinidad and Tobago dollar was pegged to the United States dollar. The first major depreciation of the Trinidad and Tobago dollar since June 1976 occurred in December 1985, when the country's currency was devalued 50 percent against the United States dollar. As a result of the devaluation, the exchange rate moved from US$1.00 to TT$2.40 to US$1.00 to TT$3.60. This reduced international reserves but was expected to increase export competitiveness. Government foreign exchange controls existed, particularly for foreign travel by nationals.

Source: http://countrystudies.us/caribbean-islands/50.htm

[The_Honourable]

We've been holding steady since 1998:

"Dr Terrence Farrell, in a newspaper commentary to mark the 20th anniversary of the flotation in April 2013, reminds us that the Arthur NR Robinson administration “unified the dual exchange rate at $3.60 to US$1 in January 1987, and then devalued to $4.25 in April 1988.” This means there was an 18 per cent devaluation of the TT dollar in April 1988.

According to the Central Bank’s July 2006 Public Education Pamphlet on “Inflation,” the inflation rate in 1988 was 7.8 per cent and in the two years following it was 11.4 per cent and 11 per cent. Farrell also notes that the April 1993 flotation led to an immediate adjustment of the exchange rate from $4.25 to $5.76 to US$1—which was a 35.5 per cent depreciation, by my calculations.

The Central Bank document states that in 1992, the year before the flotation, T&T’s inflation rate was 6.5 per cent. It increased to 10.8 per cent in 1993 (the year of the flotation), but declined to 8.8 per cent, 5.3 per cent and 3.3 per cent in 1994, 1995 and 1996.

This seems to indicate that although the T&T dollar depreciated by 35 per cent in 1993, the impact of the price adjustments was only experienced in the year of the flotation and thereafter inflation moderated. (The rate of inflation in 1997 and 1998 was 3.6 per cent and 5.6 per cent).

Deputy Central Bank Governor, Dr Alvin Hilaire, in an April 2000 IMF working paper titled Caribbean Approaches to Economic Stabilization, compared the approaches of four Caribbean nations, Barbados, Jamaica, Guyana and T&T, to structural adjustment in the 1980s.

Hilaire states that T&T chose discrete devaluations in 1985 and 1988 and then floated the currency in 1993. He said that between 1987 and 1998, the value of the T&T dollar to the US dollar moved from $3.6 to $6.3—which from my calculation is a 75 per cent decline.

Source: http://www.guardian.co.tt/business/2015 ... preciation

[bluesclues]

@miktay

the answer to your question is simple.

with china keeping their currency artificially undervalued, it allows them to take a major market share of the internation export market. and usa buys everything from china and then we come and buy from usa.

what will happen if both the usd and ttd devalue? same as before.. ttd buyin power decreases as well. since now the cost of chinese goods pegged against the yuan will now cost more of weaker usd/ttd dollars as the prices will raise to compensate for the exchange rate offset. our local duties and vat will now also take a larger chunk mathematically as we dealing with percentages. a drop to 12.5% might be justified in such a scenario to ease up the citizenry a bit. but we'd have to make sure that we can still sustain ourselves with a 2.5% loss which really is a loss if u cross-reference the loss in purchasing power pre-devaluation. in short, import costs are going to rocket when what we need urgently, is more export and food sustainability.

i giving the pnm another wukk. because both fall under the same category. Inflation! whether its loss in purchasing power while salaries remain the same, deficit spending, or currency devaluation. all amounts to the toll of and regular outlets for inflation. so for the pnm to show that they are a new administration without manning at the helm. theyll have to break the train of increased inflation every time they in power. so that is they wukk. prevent inflation for the next 5 years.

[BRZ]

If there is a devaluation coming this Budget day - Expect prices of everything Imported or with Foreign Input to Increase accordingly.

For a Long time now there has been a lack of Encouragement to "BUY LOCAL", lets see if it will come back to bite people in the rear.

Hope you all ready - Tiida new price might be $300,000.00

Governments do currency devaluations when the population least expects it. Since people looking out for it on budget day, it would not happen.

btw, found this nice piece of history:

In 1964 the Trinidad and Tobago dollar replaced the British West Indian dollar as the national currency. Eastern Caribbean dollars--the common currency of members of the Organization of Eastern Caribbean States (OECS--see Glossary) and pegged to the United States dollar at EC$2.70 equals US$1.00--and other currencies also circulated. From 1972 to 1976, the Trinidad and Tobago dollar was floated against the British pound sterling; after 1976, however, the Trinidad and Tobago dollar was pegged to the United States dollar. The first major depreciation of the Trinidad and Tobago dollar since June 1976 occurred in December 1985, when the country's currency was devalued 50 percent against the United States dollar. As a result of the devaluation, the exchange rate moved from US$1.00 to TT$2.40 to US$1.00 to TT$3.60. This reduced international reserves but was expected to increase export competitiveness. Government foreign exchange controls existed, particularly for foreign travel by nationals.

Source: http://countrystudies.us/caribbean-islands/50.htm

like you already forget about Who's the Min of Finance, shurrt meng does do everything out ah time

[The_Honourable]

like you already forget about Who's the Min of Finance, shurrt meng does do everything out ah time

Well true... I don't trust him but he and the government would not be that stupid to do a devaluation during a time where most of the population on alert.

Not saying that Imbert will never devalue the TT dollar. He may or may not do it, but if he does, it would be done when the population least expect it. Unless we reach the levels of Greece or Puerto Rico where the population expecting it and the government can't mamaguy.

[janfar]

Best time to do it is now... They've come into government on the stance that the last government mismanaged the economy... The result just came in for the first half of 2015 showing that's we're in a decline. PP had 5 deficit budgets.

Do it now early in your term... TT has 7 day memory. Do it later and they will end up with a situation like the property tax in 2010.

[pete]

You have a lot of US to sell or what?

[janfar]

:mrgreen::mrgreen:

[X2]

Wheys... people with no time to discuss basic economic principles.... but they seem to certainly have time to read and post about how complex it would be if they did...

[A172]

i get blank about 3 days now for a lil $15000 USD, bank manager saying that the central bank not issuing foreign exchange or something

lol u still tryna pay for dah car?
dey hv the allocation dey just wud not give u

send it in JPY

[~Vēġó~]

bye bye on-line shopping.....ent dais what local businesses want?

[janfar]

bye bye on-line shopping.....ent dais what local businesses want?

Nobody reading the play yet.

[bluesclues]

bye bye on-line shopping.....ent dais what local businesses want?

Nobody reading the play yet.

is unaffected. but the local businesses suffering for usd too so im not sure theyre in on this gag. all over im seeing businesses with signs saying buying usd at $6.30. thing so brown they willing to pay the actual exchange rate.

[janfar]

I have USD for sale.

7:1

[pete]

Black market cropping up. Back to the good ole days.

[janfar]

In Venezuela that's a big thing. Can sell USD for almost 2x the actual value.

[Miktay]

@miktay

the answer to your question is simple.

with china keeping their currency artificially undervalued, it allows them to take a major market share of the internation export market. and usa buys everything from china and then we come and buy from usa.

To accuse China of artificially undervaluing the Yuan...iz like accusing someone of wining downtown on Cval Tuesday.

Every country 'manages' its exchange rates. The USA, UK, China, and the Eurozone all engage in this practice.

The question iz how much. How much and what kina wining iz too much?

[bluesclues]

im not accusing china of anything. it's known that they keep their rate artificially low. they just lowered it again about 3 weeks ago. that allows them to print more money into circulation without debt. and is also part of how they capture the international export market with cheap goods.

[Miktay]

im not accusing china of anything. it's known that they keep their rate artificially low. they just lowered it again about 3 weeks ago. that allows them to print more money into circulation without debt. and is also part of how they capture the international export market with cheap goods.

Define artificial.

[bluesclues]

forcibly lower than it could be whilst still maintaining a viable economy. its a pretty neat trick when u look at it. just have to have the productivity to keep the drive going and that economy will eventually explode. some ancient financial wisdom them chinese on.

[Miktay]

forcibly lower than it could be whilst still maintaining a viable economy. its a pretty neat trick when u look at it. just have to have the productivity to keep the drive going and that economy will eventually explode. some ancient financial wisdom them chinese on.

Again.

Every major country does this.

Why is it artificial when China does it? Why iz it NOT artificial when the US does it?

China iz just playing the game.

Don't hate the playa...hate the game.

[bluesclues]

forcibly lower than it could be whilst still maintaining a viable economy. its a pretty neat trick when u look at it. just have to have the productivity to keep the drive going and that economy will eventually explode. some ancient financial wisdom them chinese on.

Again.

Every major country does this.

Why is it artificial when China does it? Why iz it NOT artificial when the US does it?

China iz just playing the game.

Don't hate the playa...hate the game.

yes but its not quite the same. china has trillions in 'savings'. while other countries are deficit spending and taking loans. usa as an example borrowed trillions from china and still owing. when you consider these factors u realise that the yuan can suffer a great loss of resilience if its value were to say double. but their economy would function, just like all our deficit economies are.

but why would you do that, when you can have all the countries of the world standing on your backbone? protected by the tents of shem.

[Miktay]

yes but its not quite the same. china has trillions in 'savings'. while other countries are deficit spending and taking loans. usa as an example borrowed trillions from china and still owing. when you consider these factors u realise that the yuan can suffer a great loss of resilience if its value were to say double. but their economy would function, just like all our deficit economies are.

So it's NOT OK for creditor nations to manipulate their currency?

But thats OK for debtor nations?

That makes no sense.

but why would you do that, when you can have all the countries of the world standing on your backbone? protected by the tents of shem.

Yuh loss mih there...pardner.

[bluesclues]

yes but its not quite the same. china has trillions in 'savings'. while other countries are deficit spending and taking loans. usa as an example borrowed trillions from china and still owing. when you consider these factors u realise that the yuan can suffer a great loss of resilience if its value were to say double. but their economy would function, just like all our deficit economies are.

So it's NOT OK for creditor nations to manipulate their currency?

But thats OK for debtor nations?

That makes no sense.

but why would you do that, when you can have all the countries of the world standing on your backbone? protected by the tents of shem.

Yuh loss mih there...pardner.

i didnt say there was anything wrong with what theyre doing. lets keep focussing on the english language please. i actually praised their strategic moves.

what i would point out is that usa has been complaining about it for years and have been unhappy with china's suppressing the value of their currency. obviously, because if u want to take them over u have to try and get them into deficit too like the other countries. but china wont bite and i think it was recently emphasized and realized that nothing can be done about it.

[zoom rader]

Have no fear Chinese banks are coming here under PNM to wash Chinese laundry money. More US to tote out from trin

[Kalisnakov]

Ah boy ZR yr bk

[bluesclues]

same thing i was saying about chinesedevaluation. and also that chinese economy not sputtering as usa news would like to make u think.

[desifemlove]

Ent TTD a managed/dirty float? why not simply just mark down the value in the band?