National Bank to Sell $110 Million to Stabilize Riel’s Exchange Rate
Re: National Bank to Sell $110 Million to Stabilize Riel’s Exchange Rate
In terms of international trade the Riel doesn't really have much effect as it's not convertible anywhere outside of Cambodia. Companies importing raw materials and exporting the end products will generally do their whole process in USD. The only effect of the Riel exchange rate is that tax returns and payments are calculated in Riel.Albror wrote: ↑Fri Sep 29, 2023 4:37 pmCambodia export allot to the US so they should benefit from it as a stronger dollar makes it even cheaper to import products from Cambodia vs domestic production.Alex wrote: ↑Fri Sep 29, 2023 4:02 pmAnd yet, it has been quite strong recently, let's say against CNY and THB. Whatever the longterm prospects of the USD may be, this will now become a problem for Cambodia.Nona wrote: ↑Fri Sep 29, 2023 3:22 pmThe value of dollar was originally due to its gold standard, after which the entire oil market was done in dollars, but now even European countries buying oil in RMB and BRICS already released a international remittance system for trading in their respective currencies, the dollar has only one direction, down.
The downside is that imports paid for with usd will be more expensive at the same time but i dont know how much Cambodia imports with the payment in usd or what impact that would have. But most products are from Thailand and Vietnam i believe? How much does this impact the KHR/THB/VND rate?
What is more important is the strength of the Dollar against other currencies like the Euro, for instance a strong Dollar makes Cambodian products more expensive for European importers.
On the flip side, the beer producers here buy huge amounts of their main ingredient priced in Euros and Aussie Dollars so a strong US Dollar helps keeps the important prices down
Re: National Bank to Sell $110 Million to Stabilize Riel’s Exchange Rate
What are you talking about? The US was only ever on a true gold standard from 1879 - 1933. I believe the US $ was around well before 1879. It wasn’t until 1973 that the US $ was considered the standard currency for oil trades.Nona wrote: ↑Fri Sep 29, 2023 3:22 pmThe value of dollar was originally due to its gold standard, after which the entire oil market was done in dollars, but now even European countries buying oil in RMB and BRICS already released a international remittance system for trading in their respective currencies, the dollar has only one direction, down.
Reckless lending policy and regulations(as most regulators mysteriously gets hired by the banks they were supposed to regulate) and fines and penalties being only a fraction of the profit gained on illegal manipulation of markets, is not helping the situation. Despite the US government is entitled to the profit(but not dividend) of the federal reserve, it's still owned by other banks. So the same criminals who manipulate the market in their favour and bribes the regulators with 7 figure employment deals, are the same who decide how much interest you pay on your mortgage, and. A few years ago anyone I'm the US could get a mortgage with no cash saved up, and interest rates where 1.5%. Now the same banks decide you have to pay them 5%, and they hope you can't, because it's really your house they are after.
In any normal country the financial regulations are done by the government to ensure a stable market, not by the private sector who seeks to make profit on unstable markets. To believe the US government has any control is foolish, they have since long been serving only the banking and military industry eg. Ukraine, private banks creating debt out of thing air, which mostly goes to the military industry. What the taxpayers get is the responsibility to pay this debt.
The rest of your post, or should I say opinion, is just nonsense.
- Roryborealis
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Re: National Bank to Sell $110 Million to Stabilize Riel’s Exchange Rate
Selling those dollars reduces the amount of riel in circulation, but that reduction doesn't seem nearly as significant as the trade/export implications. Just another moving part.
Re: National Bank to Sell $110 Million to Stabilize Riel’s Exchange Rate
Another refreshing look on thingsNona wrote: ↑Fri Sep 29, 2023 3:22 pmThe value of dollar was originally due to its gold standard, after which the entire oil market was done in dollars, but now even European countries buying oil in RMB and BRICS already released a international remittance system for trading in their respective currencies, the dollar has only one direction, down.
Reckless lending policy and regulations(as most regulators mysteriously gets hired by the banks they were supposed to regulate) and fines and penalties being only a fraction of the profit gained on illegal manipulation of markets, is not helping the situation. Despite the US government is entitled to the profit(but not dividend) of the federal reserve, it's still owned by other banks. So the same criminals who manipulate the market in their favour and bribes the regulators with 7 figure employment deals, are the same who decide how much interest you pay on your mortgage, and. A few years ago anyone I'm the US could get a mortgage with no cash saved up, and interest rates where 1.5%. Now the same banks decide you have to pay them 5%, and they hope you can't, because it's really your house they are after.
In any normal country the financial regulations are done by the government to ensure a stable market, not by the private sector who seeks to make profit on unstable markets. To believe the US government has any control is foolish, they have since long been serving only the banking and military industry eg. Ukraine, private banks creating debt out of thing air, which mostly goes to the military industry. What the taxpayers get is the responsibility to pay this debt.
Spoiler:
Re: National Bank to Sell $110 Million to Stabilize Riel’s Exchange Rate
I said the same thing about Bitcoin back in the days when it was worth a few k. Now it's well over 20k.Nona wrote: ↑Fri Sep 29, 2023 3:22 pmThe value of dollar was originally due to its gold standard, after which the entire oil market was done in dollars, but now even European countries buying oil in RMB and BRICS already released a international remittance system for trading in their respective currencies, the dollar has only one direction, down.
Re: National Bank to Sell $110 Million to Stabilize Riel’s Exchange Rate
International trade doesn't necessarily influence the amount of riels in the country because it's done in foreign currencies, not in riels. Only in the event riels are converted to make the trade the amount of riels will do down, which doesn't happen a lot I guess. The amount will never go up because no company can receive riels from a foreign trade.Roryborealis wrote: ↑Sat Oct 07, 2023 4:30 am Selling those dollars reduces the amount of riel in circulation, but that reduction doesn't seem nearly as significant as the trade/export implications. Just another moving part.
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