For most of us, the total cost of a vacation is likely the number one reason for choosing a holiday destination. If one is just looking at currency valuations, here are three countries you may want to consider: Russia, Argentina and India.
The Russian ruble is now approximately 40% undervalued to the USD. This time of year, one can also find for the most part reduced airline ticket prices. If you can get a half decent deal on a flight, then most likely hotel prices & food are likely to be at a significant discount if you arriving from a USD, EUR, JPY, GBP CAD currency zone for example.
The Indian rupee has experienced a dramatic decline of over 20% during the summer. What about Argentina? Local currency chaos as usual. Not good if you are earning income and living full time in Argentina based on currency purchasing power parity, but a terrific deal if you are tourist visiting the country. In Argentina, you will be fine dining at a fraction of the cost of your home currency zone country.
So skip the usual spots in Western Europe to North America and go somewhere exciting & exotic like India, Argentina and Russia!!
Friday, September 20, 2013
Thursday, May 9, 2013
Currency Turbulence Remains Very Prevalent
ARGENTINA: the peso is in trouble. The black market rate now sliding through 10 pesos to the USD this week, the official rate is 5.2. Inflation is high, public policy is interfering the market, business confidence is suffering coupled with currency controls.
VENEZUELA: the Chavez regime recently re-elected under a new leader on the slimmest of margins is up against the wall on the economy. The country is on the verge of a significant political crisis.
High inflation is resulting in a bolivar currency that is steadily declining in value. Paper currencies and devaluations are a time tested story that is frequently repeated in Latin American history. Venezuela like Argentina is suffering from ill advised public policy decisions.
JAPAN: the yen breached the 100 JPY to the USD level for the first time in four years this week. Several analysts are now targeting 125 JPY as the next level of decline. The yen is in decline due too massive government fiscal stimulus and an aggressive central bank policy aimed at depreciating the yen in hopes of stimulating inflation. The country has been fighting deflation forces for 20 years with stagnant growth. The challenge now are many which include massive increasing national debt as a percentage of GDP upwards of 500% by some measures. A declining & aging population coupled with a strict rigid immigration policy. Japan is slowly turning the switch back on for nuclear energy after the devastating earthquake & tsunami from a couple of years ago which essentially shut the domestic nuclear power industry offline. This removal of nuclear energy has resulted in a sharp increase in liquefied natural gas (LNG) imports which is impacting Japan's current account. Expect more yen depreciation ahead. One idea the Japanese authorities may wish to investigate is to re-denominate the yen valuation from 100 JPY to 1 JPY in relation to the USD. This may help to boost domestic consumption as citizens rush to replace mattress old JPY with new JPY banknotes.
BITCOIN: the new virtual currency that has hopes of replacing paper currency whilst minimizing transaction costs for payment settlements. Now there is talk of U.S. authorities interfering with regulation - quite ironic since the currency was designed to avoid central government control.
Protect yourself, diversify your wealth amongst several of the world's most stable currencies. Visit http://www.bankintroductions.com for further knowledge.
VENEZUELA: the Chavez regime recently re-elected under a new leader on the slimmest of margins is up against the wall on the economy. The country is on the verge of a significant political crisis.
High inflation is resulting in a bolivar currency that is steadily declining in value. Paper currencies and devaluations are a time tested story that is frequently repeated in Latin American history. Venezuela like Argentina is suffering from ill advised public policy decisions.
JAPAN: the yen breached the 100 JPY to the USD level for the first time in four years this week. Several analysts are now targeting 125 JPY as the next level of decline. The yen is in decline due too massive government fiscal stimulus and an aggressive central bank policy aimed at depreciating the yen in hopes of stimulating inflation. The country has been fighting deflation forces for 20 years with stagnant growth. The challenge now are many which include massive increasing national debt as a percentage of GDP upwards of 500% by some measures. A declining & aging population coupled with a strict rigid immigration policy. Japan is slowly turning the switch back on for nuclear energy after the devastating earthquake & tsunami from a couple of years ago which essentially shut the domestic nuclear power industry offline. This removal of nuclear energy has resulted in a sharp increase in liquefied natural gas (LNG) imports which is impacting Japan's current account. Expect more yen depreciation ahead. One idea the Japanese authorities may wish to investigate is to re-denominate the yen valuation from 100 JPY to 1 JPY in relation to the USD. This may help to boost domestic consumption as citizens rush to replace mattress old JPY with new JPY banknotes.
BITCOIN: the new virtual currency that has hopes of replacing paper currency whilst minimizing transaction costs for payment settlements. Now there is talk of U.S. authorities interfering with regulation - quite ironic since the currency was designed to avoid central government control.
Protect yourself, diversify your wealth amongst several of the world's most stable currencies. Visit http://www.bankintroductions.com for further knowledge.
Wednesday, December 5, 2012
Big Pussy Cat to Emerging Tiger - Philippines
The Philippines peso (PHP) is hitting close to a 5 year high in valuation when compared to the US-dollar (USD). On December 5, 2012, the peso closed at 40.85 PHP. The peso is now anchored by low inflation running at 2.8% (November 2012), a country very rich in natural resources (energy and mineral resources) and spearheaded by very competent political management under the leadership of President Aquino.
This is quite a currency appreciation move by the PHP. In August 2009, the peso was trading at 48.25 PHP to the USD, a gain of almost 16% when compared to today's valuation.
Keep your eye on the Philippines. Although vulnerable to typhoons as witnessed with yesterday's tragic storm strike on Eastern Mindanao Island (southern Philippines), the country is vibrant, economic growth is strong. Expect to see the political leaders to continue to invest in energy infrastructure, roads, health & education whilst maintaining a balance with the environment and industry growth in mining, energy and manufacturing sectors.
This time, the peso may very well continue to appreciate even further neglecting previous cyclical trading cycles. A more prosperous Philippines in the years is inevitable, indeed, an emerging tiger rooted in the country's rich natural resources.
For more information on currencies, please visit BankIntroductions.com:
http://www.bankintroductions.com/
This is quite a currency appreciation move by the PHP. In August 2009, the peso was trading at 48.25 PHP to the USD, a gain of almost 16% when compared to today's valuation.
Keep your eye on the Philippines. Although vulnerable to typhoons as witnessed with yesterday's tragic storm strike on Eastern Mindanao Island (southern Philippines), the country is vibrant, economic growth is strong. Expect to see the political leaders to continue to invest in energy infrastructure, roads, health & education whilst maintaining a balance with the environment and industry growth in mining, energy and manufacturing sectors.
This time, the peso may very well continue to appreciate even further neglecting previous cyclical trading cycles. A more prosperous Philippines in the years is inevitable, indeed, an emerging tiger rooted in the country's rich natural resources.
For more information on currencies, please visit BankIntroductions.com:
http://www.bankintroductions.com/
Friday, November 2, 2012
Travel: Look for Cheap Currency - TURKEY New Lira
In search of a place to travel that provides affordability, culture and a terrific climate. Look no further then the Republic of Turkey, situated as the gateway between Europe and Asia. Turkey is a democratic, secular nation that currently provides foreign tourists with a very cheap currency.
Why spend a fortune within European Union member countries such as France, Germany that function on the expensive Euroland euro (EUR) currency when one can enjoy a tremendous currency advantage with Turkey's cheap currency, the Turkish New Lira.
In January 2008, the Turkish new lira was trading at 1.175 TRY to 1 US dollar (USD). Today, almost 5 years later the new lira has dramatically declined in value to 1.8026 TRY to 1 USD. As measured by purchasing power parity, the TRY stands at 45 percent undervalued to the USD.
If you like Mediterranean climate, historical culture, beautiful scenery, exotic beach resorts and an inexpensive currency, take a look at Turkey!
Why spend a fortune within European Union member countries such as France, Germany that function on the expensive Euroland euro (EUR) currency when one can enjoy a tremendous currency advantage with Turkey's cheap currency, the Turkish New Lira.
In January 2008, the Turkish new lira was trading at 1.175 TRY to 1 US dollar (USD). Today, almost 5 years later the new lira has dramatically declined in value to 1.8026 TRY to 1 USD. As measured by purchasing power parity, the TRY stands at 45 percent undervalued to the USD.
If you like Mediterranean climate, historical culture, beautiful scenery, exotic beach resorts and an inexpensive currency, take a look at Turkey!
Monday, March 26, 2012
Japanese Yen close to cyclical turn?
For decades during a time of rapid economic growth and a debt deflationary period since 1990, the yen has steadily appreciated in value from the 360 JPY to the USD in 1949 to as high as 76.72 JPY to the USD recently in October 2011. Are we now at a major cyclical turning point for the yen?
BankINTRO.com thinks so. We think the yen will now enter a multi - year phase of modest depreciation. Not a crash, but a gradual slow period of declining currency valuations as the Japanese authorities try to nudge inflation to positive rates from modest deflationary measures. The good news is that the Japanese stock market may now turn into a bullish era as well from a devastating 20 year bear market.
Taxes remain on the whole quite low in Japan, they have room to move here to raise badly needed revenues to begin the process of bringing down the national gross debt which is out of control at over 200 percent of GDP. Not an entirely desperate situation as most of the debt is internally held by Japanese but a concern. Rating agencies have taken notice and put Japan on currency watch. These macro-economic challenges along with a declining population have the earmarks of modest yen currency decline in the years ahead. At present, the yen is approximately 35 percent overvalued to the USD as measured by purchasing power parity.
For more information on global currencies, please visit http://www.bankintroductions.com
BankINTRO.com thinks so. We think the yen will now enter a multi - year phase of modest depreciation. Not a crash, but a gradual slow period of declining currency valuations as the Japanese authorities try to nudge inflation to positive rates from modest deflationary measures. The good news is that the Japanese stock market may now turn into a bullish era as well from a devastating 20 year bear market.
Taxes remain on the whole quite low in Japan, they have room to move here to raise badly needed revenues to begin the process of bringing down the national gross debt which is out of control at over 200 percent of GDP. Not an entirely desperate situation as most of the debt is internally held by Japanese but a concern. Rating agencies have taken notice and put Japan on currency watch. These macro-economic challenges along with a declining population have the earmarks of modest yen currency decline in the years ahead. At present, the yen is approximately 35 percent overvalued to the USD as measured by purchasing power parity.
For more information on global currencies, please visit http://www.bankintroductions.com
Thursday, December 29, 2011
BankINTRO.com now on TWITTER!
Follow currency movements and important global banking news on twitter at BankINTRO.com
Swiss franc (CHF) is currently 60% overvalued to USD as measured by PPP, visit bankintroductions.com currency index for currency info.
Over the last 5 months, the CHF currency valuation has fallen from the 90 percent overvaluation to the USD to the current 60 percent valuation as measured by purchasing power parity. This is a significant haircut in valuation for a currency widely recognized for its historical safe haven mystique.
Swiss franc (CHF) is currently 60% overvalued to USD as measured by PPP, visit bankintroductions.com currency index for currency info.
Over the last 5 months, the CHF currency valuation has fallen from the 90 percent overvaluation to the USD to the current 60 percent valuation as measured by purchasing power parity. This is a significant haircut in valuation for a currency widely recognized for its historical safe haven mystique.
Thursday, November 3, 2011
Spectacular Rise and Fall of the Swiss Franc (CHF)
Over the last few months, the Swiss franc valuation has taken a wild ride at the amusement park. During the height of the Euro crisis in August 2011, their was a significant currency hot money move towards safe haven currencies whereby the Swiss franc was one of the biggest beneficiaries. The CHF peaked at 1.37 USD to buy 1 CHF, today this valuation sits closer to 1.12 USD.
The party came to an end when the Swiss authorities in September 2011 capped the CHF valuation to a level of 1.2 CHF to the Euro (EUR) which resulted in a spectacular 25 cent US correction. But is the hangover from the party over? Purchasing power parity suggest the CHF is still the most overvalued industrialized currency in the world today in relation to the USD with a 72% overvaluation for the CHF.
The Swiss National Bank, the country's central bank has signaled strong intentions to prevent another hot money run on the CHF as a fast dramatic rise in the Swiss franc greatly harms Swiss exports. With Swiss interest rates close to zero and deposit accounts paying 0.5% to 2% for various terms, one may want to take a look at the CHF currency moves as it has shown tremendous price volatility.
The party came to an end when the Swiss authorities in September 2011 capped the CHF valuation to a level of 1.2 CHF to the Euro (EUR) which resulted in a spectacular 25 cent US correction. But is the hangover from the party over? Purchasing power parity suggest the CHF is still the most overvalued industrialized currency in the world today in relation to the USD with a 72% overvaluation for the CHF.
The Swiss National Bank, the country's central bank has signaled strong intentions to prevent another hot money run on the CHF as a fast dramatic rise in the Swiss franc greatly harms Swiss exports. With Swiss interest rates close to zero and deposit accounts paying 0.5% to 2% for various terms, one may want to take a look at the CHF currency moves as it has shown tremendous price volatility.
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