tag:blogger.com,1999:blog-14858768.post113314624948223942..comments2023-02-15T20:06:13.584+08:00Comments on Rational Choice: The peso's recent surgeRoehlanohttp://www.blogger.com/profile/04018109135738021378noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-14858768.post-1133507065064429852005-12-02T15:04:00.000+08:002005-12-02T15:04:00.000+08:00Observing the daily tradings then, at the end of t...Observing the daily tradings then, at the end of the trading period, whatever remaining dollars being bought or sold by the local banks that were not accounted for or matched with, the CB simply bought or sold the required dollars to balance.<BR/><BR/>That was many years ago, but I believe the present floating rate method was already in place.Amadeohttps://www.blogger.com/profile/00040096079637569742noreply@blogger.comtag:blogger.com,1999:blog-14858768.post-1133372154146398442005-12-01T01:35:00.000+08:002005-12-01T01:35:00.000+08:00If you go to Yahoo Finance though, and look at the...If you go to Yahoo Finance though, and look at the Peso-Dollar rate over 5 years, there is no surge in the December of the preceding 5 years (so we know it is not the "usual" remittances).<BR/><BR/>What would the explanation for "unusual" remittances be though?<BR/><BR/>As for the CB calling for deficits, I guess that means that it is a managed floating exchange rate? If so, what's the real impact of this? My sense is that the CB does not have enough reserves to manage the rate in case of big swings. If they are only stepping in during miniscule swings, in the big scheme of things, what's the point in doing so?<BR/><BR/>ATAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-14858768.post-1133278121891176992005-11-29T23:28:00.000+08:002005-11-29T23:28:00.000+08:00Amadeo, Deficits, you say? It must be in reference...Amadeo, <BR/><BR/>Deficits, you say? It must be in reference to maintaining some target exchange rate. For a fully floating exchange rate, deficits and surpluses are quickly eliminated by forex trade.Roehlanohttps://www.blogger.com/profile/04018109135738021378noreply@blogger.comtag:blogger.com,1999:blog-14858768.post-1133250939160181092005-11-29T15:55:00.000+08:002005-11-29T15:55:00.000+08:00Additionally, at present I do not really know how ...Additionally, at present I do not really know how the peso exchange rates are determined.<BR/><BR/>As I recall working for a local bank, forex exhange trading was done by CB with the BAP, with the CB pretty much calling whatever deficits were not accounted for during the daily tradings.Amadeohttps://www.blogger.com/profile/00040096079637569742noreply@blogger.comtag:blogger.com,1999:blog-14858768.post-1133250644810678632005-11-29T15:50:00.000+08:002005-11-29T15:50:00.000+08:00I concur with the hypothesis that this peso surge ...I concur with the hypothesis that this peso surge may be due to the unusually large inward remittances coming from the OFWs.<BR/><BR/>Funny, though since on its own the US dollar is much improved vis-a-vis the other currencies, especially the Euro.<BR/><BR/>And the US stock markets are also on an upsurge. I personally would like to see the Dow break 11,000 before the year ends.Amadeohttps://www.blogger.com/profile/00040096079637569742noreply@blogger.comtag:blogger.com,1999:blog-14858768.post-1133200229040887042005-11-29T01:50:00.000+08:002005-11-29T01:50:00.000+08:00This "surge" is really miniscule in my opinion, an...This "surge" is really miniscule in my opinion, and if you take a longer term view, the Peso is still significantly down. One measure I use (non-scientifically) is the Peso-Baht rate, and we're still doing pretty bad.<BR/><BR/>ATAnonymousnoreply@blogger.com