JAKARTA-
The appreciation of Indonesia's rupiah could help contain price pressure in Southeast Asia's biggest economy, the International Monetary Fund's senior resident representative in Indonesia said on Wednesday.
Milan Zavadjil, the IMF's representative, also told Reuters in an email that the central bank, Bank Indonesia (BI), was right to direct intervention to trying to reduce volatility in the rupiah, which is Asia's best-performing currency so far this year.
'In the current situation of strong capital inflows, the appreciation of the rupiah can help contain domestic price rises. BI is right to direct intervention largely at reducing volatility,' he said.
Zavadjil noted that the country's exchange rate flexibility has helped it in the past to deal with large capital flows.
'Exchange rate flexibility has served as an important shock absorber for Indonesia,' he said.
'During the worse of the global financial crisis, the flexibility of the currency helped absorb large capital outflows, thus avoiding a large loss in reserves and a loss in confidence.' October 14th 2009.
Thursday, October 15, 2009
3 Indonesia banks agree to US$329 mln loan for coal power plants
JAKARTA- Three Indonesian state-owned banks agreed Wednesday to extend a syndicated loan of Rp3.94 trillion (US$328.5 million) to finance the construction of coal-fired power plants (PLTUs) in Lampung and North Sumatra provinces. BANK RAKYAT INDONESIA (BRI)(JSX:BBRI) and Rp1.28 from BANK NEGARA INDONESIA (BNI)(JSX:BBNI) and BANK MANDIRI (JSX:BMRI) will each contribute Rp1.38 trillion.
* BRI director Asmawi Syam, BNI director Riswandi and Bank Mandiri vice president director I Wayan Agus Mertayasa signed an agreement on the syndicated loan with state electricity company PT PERUSAHAAN LISTRIK NEGARA (PLN) president director Fahmi Mochtar in the presence of Coordinating Minister for Economic Affairs/Finance Minister Sri Mulyani on Wednesday.
* Riswandi said the syndicated loan will account for 85 per cent of the total funds needed to construct PLTU Tarahan in Lampung and PLTU Pangkalan Susu in North Sumatra.
* BRI director Asmawi Syam, BNI director Riswandi and Bank Mandiri vice president director I Wayan Agus Mertayasa signed an agreement on the syndicated loan with state electricity company PT PERUSAHAAN LISTRIK NEGARA (PLN) president director Fahmi Mochtar in the presence of Coordinating Minister for Economic Affairs/Finance Minister Sri Mulyani on Wednesday.
* Riswandi said the syndicated loan will account for 85 per cent of the total funds needed to construct PLTU Tarahan in Lampung and PLTU Pangkalan Susu in North Sumatra.
Saturday, October 10, 2009
Nishat Group Chmn:To Join Maybank In Buying Stakes In Overseas Bks
KARACHI (Dow Jones)-
Pakistan's Nishat Group said Wednesday it will tie up with Malaysia's Malayan Banking Bhd. (1155.KU), or Maybank, to buy stakes in overseas banks.
"We now plan to move ahead with acquiring stakes in some banks in the Middle East and Indonesia," Nishat Group Chairman Mian Mansha told reporters.
He declined to name the potential targets or the likely investment that could be made.
Mansha said the group's MCB Bank (MCB.KA), in which Maybank is a shareholder, is likely to complete the buyout of the Royal Bank of Scotland Group PLC's (RBS) Pakistan operations in two weeks.
The MCB Bank had bought Royal Bank of Scotland's Pakistan assets in August this year.
Pakistan's Nishat Group said Wednesday it will tie up with Malaysia's Malayan Banking Bhd. (1155.KU), or Maybank, to buy stakes in overseas banks.
"We now plan to move ahead with acquiring stakes in some banks in the Middle East and Indonesia," Nishat Group Chairman Mian Mansha told reporters.
He declined to name the potential targets or the likely investment that could be made.
Mansha said the group's MCB Bank (MCB.KA), in which Maybank is a shareholder, is likely to complete the buyout of the Royal Bank of Scotland Group PLC's (RBS) Pakistan operations in two weeks.
The MCB Bank had bought Royal Bank of Scotland's Pakistan assets in August this year.
Maybank CEO: No immediate plans for new acquisitions
KUALA LUMPUR-
Malayan Banking Bhd (Maybank) chief executive officer Datuk Seri Abdul Wahid Omar has dismissed reports that the group is looking to purchase new banking assets after spending RM11.1bil last year on acquisitions overseas.
“We did three acquisitions last year, and we have enough on our plates. The focus for us now is organic growth,” Wahid, who is also the bank’s president, said at a press conference to launch Maybank’s latest premium debit card product.
Earlier this week, the chairman of Pakistan’s Nishat Group, Mian Mohammad Mansha, was quoted in a foreign news report as saying that MCB Bank Ltd and Maybank may team up to acquire banks in the Middle East and Indonesia.
“It is not true. I believe the chairman’s statement was taken out of context,’’ Wahid said.
Nishat Group owns an estimated 32% stake in MCB Bank, while Maybank owns a 20% share in the Pakistan-based lender.
Wahid also ruled out a possible bid for a strategic stake in Bank Islam Malaysia Bhd.
“This is something which we have not looked into,’’ he said.
Maybank Islamic Bhd is currently the country’s biggest Islamic bank with total assets of RM35bil, and “we believe there is tremendous opportunity to expand our Islamic banking operations organically,’’ according to Wahid.
Last week, Dubai Financial Group confirmed that it was in the process of reviewing its strategic options relating to its 40% stake in Bank Islam.
Maybank Islamic had been previously linked as a possible buyer.
Elaborating on the group’s organic expansion plans, Wahid said this might include setting up Islamic banking operations in Indonesia.
Maybank had earlier announced that its unit Bank Internasional Indonesia (BII) will add 200 new branches to its existing 250 outlets over the next three years.
Wahid is also planning to boost contributions from the group’s operations in the Philippines and Cambodia by opening new branches in the two countries.
Malaysia’s biggest bank is also strengthening its grip in the home market.
In the debit-card business, Maybank has a dominant market share of 80% in terms of total billings and a 26% share of the total 24.4 million debit-card holders in the country.
Wahid estimated that Maybank’s debit-card transactions amounted to about RM120mil a month.“For Maybank MasterCard Platinum Debit, we are targeting to recruit half a million card members in two years,’’ Wahid said, adding that the latest product, aimed at big spenders and rich customers, would boost Maybank’s debit-card billings by 80% by the end of 2010.
Malayan Banking Bhd (Maybank) chief executive officer Datuk Seri Abdul Wahid Omar has dismissed reports that the group is looking to purchase new banking assets after spending RM11.1bil last year on acquisitions overseas.
“We did three acquisitions last year, and we have enough on our plates. The focus for us now is organic growth,” Wahid, who is also the bank’s president, said at a press conference to launch Maybank’s latest premium debit card product.
Earlier this week, the chairman of Pakistan’s Nishat Group, Mian Mohammad Mansha, was quoted in a foreign news report as saying that MCB Bank Ltd and Maybank may team up to acquire banks in the Middle East and Indonesia.
“It is not true. I believe the chairman’s statement was taken out of context,’’ Wahid said.
Nishat Group owns an estimated 32% stake in MCB Bank, while Maybank owns a 20% share in the Pakistan-based lender.
Wahid also ruled out a possible bid for a strategic stake in Bank Islam Malaysia Bhd.
“This is something which we have not looked into,’’ he said.
Maybank Islamic Bhd is currently the country’s biggest Islamic bank with total assets of RM35bil, and “we believe there is tremendous opportunity to expand our Islamic banking operations organically,’’ according to Wahid.
Last week, Dubai Financial Group confirmed that it was in the process of reviewing its strategic options relating to its 40% stake in Bank Islam.
Maybank Islamic had been previously linked as a possible buyer.
Elaborating on the group’s organic expansion plans, Wahid said this might include setting up Islamic banking operations in Indonesia.
Maybank had earlier announced that its unit Bank Internasional Indonesia (BII) will add 200 new branches to its existing 250 outlets over the next three years.
Wahid is also planning to boost contributions from the group’s operations in the Philippines and Cambodia by opening new branches in the two countries.
Malaysia’s biggest bank is also strengthening its grip in the home market.
In the debit-card business, Maybank has a dominant market share of 80% in terms of total billings and a 26% share of the total 24.4 million debit-card holders in the country.
Wahid estimated that Maybank’s debit-card transactions amounted to about RM120mil a month.“For Maybank MasterCard Platinum Debit, we are targeting to recruit half a million card members in two years,’’ Wahid said, adding that the latest product, aimed at big spenders and rich customers, would boost Maybank’s debit-card billings by 80% by the end of 2010.
Wednesday, September 30, 2009
CIMB says Indonesia to account for 40 pct profit by 2015
SINGAPORE -
Malaysia's second-biggest bank CIMB BUCM.KL said on Tuesday Indonesia will account for 40 percent of the group's profit by 2015, making it bigger than the contribution from its home operation.
However, the group's CEO Nazir Razak told reporters at the launch of its Singapore retail operations that the lender is not looking for more acquisitions in Indonesia.
Sept 29th From Reuters
Malaysia's second-biggest bank CIMB BUCM.KL said on Tuesday Indonesia will account for 40 percent of the group's profit by 2015, making it bigger than the contribution from its home operation.
However, the group's CEO Nazir Razak told reporters at the launch of its Singapore retail operations that the lender is not looking for more acquisitions in Indonesia.
Sept 29th From Reuters
Monday, September 28, 2009
Japanese Yen Hit Eight Month Record
The yen hit JPY= an eight-month high of
88.23 to the dollar on Monday, but later lost ground as Japan's
finance minister tried to tone down earlier comments suggesting
intervention was unlikely, remarks that had prompted speculators
to pile into the rise.
Here are some milestones in the yen's 138-year history:
1871 - The yen becomes Japan's currency as part of the Meiji
Restoration, which marked the start of Japan's modernisation and
opening to the rest of the world. Japan adopts the gold standard.
1949 - After World War Two the dollar's fixed rate is set at
360 yen via the Bretton Woods system, partly to help stabilise
prices in the Japanese economy.
1959 - The dollar/yen exchange rate is liberalised. The
margin of fluctuation is set at 0.5 percent on either side of its
dollar parity.
1963 - The margin of fluctuation is widened to 0.75 percent.
1971 - United States abandons gold standard. The end of
Bretton Woods system of fixed exchange rates forces a realignment
of world currencies.
Dec. 1971 - Smithsonian Agreement sets the dollar/yen
exchange rate at 308 yen, and allows it to fluctuate in a wider
band between 301.07 yen and 314.93 yen.
1973 - Japanese monetary authorities decide to let the yen
float freely against the dollar, and the yen appreciates as far
as 263 to the dollar.
1978 - The yen pushes through 200 to the dollar for the first
time, strengthening as far as 177.
1980 to 1985 - Yen's appreciation halts and partially
reverses despite Japan's big trade surpluses. Higher U.S.
interest rates see Japanese investors put money in dollar assets.
1985 - The Group of Five industrial nations, the predecessor
to the G7, sign the Plaza Accord in which they agree the dollar
is overvalued and to weaken it. The yen climbs from its
pre-accord level of around 240 to 211 in October and 200 in
November, a 20 percent rise in just a few months.
1986 - The U.S. currency falls further to around 190 yen in
January, 167 yen in April and 153 yen in August.
1987 - In February, six of the G7 nations sign the Louvre
Accord, which aims to stabilise currencies and halt the dollar's
broad decline. The dollar still falls from near 153 to 137 in
April and 120.80 by the end of the year.
1988 - On Jan. 4, the dollar falls to a post-war low of
120.45 yen in Tokyo trade, a level that holds as the low for more
than five years. The Bank of Japan intervenes to buy dollars and
sell yen that day on behalf of the Ministry of Finance.
Aug. 17, 1993 - The dollar declines to a new post-war low of
100.40 yen in Tokyo.
June 21, 1994 - The dollar falls through the key 100 yen
level and touches a record postwar low of 99.85 yen in New York
trade before finishing at 100.30 yen.
April 19, 1995 - The dollar hits a record post-war low at
79.75 yen after U.S.-Japanese trade frictions spark heavy
selling. By the end of the year it is near 103.40.
1998 - Asian financial crisis sees yen weaken to nearly 148
yen vs dollar in August, even after U.S. authorities join the
Bank of Japan to buy yen, spending $833 million, in June.
In October, dollar tumbles from near 136 yen to 111.50 yen,
as carry trades unwind following the near-collapse of hedge fund
major Long-Term Capital Management.
1999 - The yen strengthens further despite repeated
intervention, reaching 102 in November.
2001 - Following the Sept 11 attacks on the United States,
Bank of Japan intervenes to sell yen for dollars.
2003 - The Ministry of Finance begins massive intervention to
halt the yen's rise against the dollar, partly to shield Japanese
exporters as the economy remains stuck in its post-bubble slump
and deflation. The MOF spends 20.4 trillion yen ($200 billion)
over the year, nearly all of it to buy dollars and sell yen.
2004 - The MOF spends 14.8 trillion yen ($145 billion)
intervening in the first quarter of the year, including 1.67
trillion yen buying dollars on Jan. 9 alone. But the MOF ceases
intervention in March and has never since resumed.
2005 - The yen hits a high of 101.67 yen in January but then
falls, hitting 121.40 in December. Yen carry trades and Japanese
investors shifting funds into foreign assets drive the slide.
June 2007 - The dollar hits a 4-1/2-year high of 124.14 yen.
July 2007 - Yen's broad depreciation takes it to a 22-year low
on a real effective exchange rate (REER) basis. Since January
2005 the yen loses 25 percent of its value on a REER basis.
March 13, 2008 - The yen hits a 12-year high of 99.77.
Oct. 24, 2008 - Yen hits 13-year high of 90.87 vs the dollar.
Also sets an all-time high of 55.11 against the Australian
dollar, which loses almost a third of its value in just a month
on a massive unwind of carry trades.
Oct. 27, 2008 - The yen's surge prompts the G7 to issue
statement singling out the yen in warning on currency market
volatility.
Dec 12, 2008 - The dollar falls through 90 yen for the first
time in 13 years after a bill to rescue U.S. automakers fails in
the Senate.
Jan 22, 2009 - Hits fresh 13-year high of 87.10 against
dollar, driven up by risk aversion and option-led dollar selling.
Sept 28 - Marks 8-month high of 88.23 aginst greenback, but
later loses ground as Japan's finance minister tries to tone down
earlier comments suggesting intervention was unlikely.
Sources: Reuters, Bank of Japan, Bank of England
Sept 28 (Reuters) - The yen hit JPY= an eight-month high of
88.23 to the dollar on Monday, but later lost ground as Japan's
finance minister tried to tone down earlier comments suggesting
intervention was unlikely, remarks that had prompted speculators
to pile into the rise.
Here are some milestones in the yen's 138-year history:
1871 - The yen becomes Japan's currency as part of the Meiji
Restoration, which marked the start of Japan's modernisation and
opening to the rest of the world. Japan adopts the gold standard.
1949 - After World War Two the dollar's fixed rate is set at
360 yen via the Bretton Woods system, partly to help stabilise
prices in the Japanese economy.
1959 - The dollar/yen exchange rate is liberalised. The
margin of fluctuation is set at 0.5 percent on either side of its
dollar parity.
1963 - The margin of fluctuation is widened to 0.75 percent.
1971 - United States abandons gold standard. The end of
Bretton Woods system of fixed exchange rates forces a realignment
of world currencies.
Dec. 1971 - Smithsonian Agreement sets the dollar/yen
exchange rate at 308 yen, and allows it to fluctuate in a wider
band between 301.07 yen and 314.93 yen.
1973 - Japanese monetary authorities decide to let the yen
float freely against the dollar, and the yen appreciates as far
as 263 to the dollar.
1978 - The yen pushes through 200 to the dollar for the first
time, strengthening as far as 177.
1980 to 1985 - Yen's appreciation halts and partially
reverses despite Japan's big trade surpluses. Higher U.S.
interest rates see Japanese investors put money in dollar assets.
1985 - The Group of Five industrial nations, the predecessor
to the G7, sign the Plaza Accord in which they agree the dollar
is overvalued and to weaken it. The yen climbs from its
pre-accord level of around 240 to 211 in October and 200 in
November, a 20 percent rise in just a few months.
1986 - The U.S. currency falls further to around 190 yen in
January, 167 yen in April and 153 yen in August.
1987 - In February, six of the G7 nations sign the Louvre
Accord, which aims to stabilise currencies and halt the dollar's
broad decline. The dollar still falls from near 153 to 137 in
April and 120.80 by the end of the year.
1988 - On Jan. 4, the dollar falls to a post-war low of
120.45 yen in Tokyo trade, a level that holds as the low for more
than five years. The Bank of Japan intervenes to buy dollars and
sell yen that day on behalf of the Ministry of Finance.
Aug. 17, 1993 - The dollar declines to a new post-war low of
100.40 yen in Tokyo.
June 21, 1994 - The dollar falls through the key 100 yen
level and touches a record postwar low of 99.85 yen in New York
trade before finishing at 100.30 yen.
April 19, 1995 - The dollar hits a record post-war low at
79.75 yen after U.S.-Japanese trade frictions spark heavy
selling. By the end of the year it is near 103.40.
1998 - Asian financial crisis sees yen weaken to nearly 148
yen vs dollar in August, even after U.S. authorities join the
Bank of Japan to buy yen, spending $833 million, in June.
In October, dollar tumbles from near 136 yen to 111.50 yen,
as carry trades unwind following the near-collapse of hedge fund
major Long-Term Capital Management.
1999 - The yen strengthens further despite repeated
intervention, reaching 102 in November.
2001 - Following the Sept 11 attacks on the United States,
Bank of Japan intervenes to sell yen for dollars.
2003 - The Ministry of Finance begins massive intervention to
halt the yen's rise against the dollar, partly to shield Japanese
exporters as the economy remains stuck in its post-bubble slump
and deflation. The MOF spends 20.4 trillion yen ($200 billion)
over the year, nearly all of it to buy dollars and sell yen.
2004 - The MOF spends 14.8 trillion yen ($145 billion)
intervening in the first quarter of the year, including 1.67
trillion yen buying dollars on Jan. 9 alone. But the MOF ceases
intervention in March and has never since resumed.
2005 - The yen hits a high of 101.67 yen in January but then
falls, hitting 121.40 in December. Yen carry trades and Japanese
investors shifting funds into foreign assets drive the slide.
June 2007 - The dollar hits a 4-1/2-year high of 124.14 yen.
July 2007 - Yen's broad depreciation takes it to a 22-year low
on a real effective exchange rate (REER) basis. Since January
2005 the yen loses 25 percent of its value on a REER basis.
March 13, 2008 - The yen hits a 12-year high of 99.77.
Oct. 24, 2008 - Yen hits 13-year high of 90.87 vs the dollar.
Also sets an all-time high of 55.11 against the Australian
dollar, which loses almost a third of its value in just a month
on a massive unwind of carry trades.
Oct. 27, 2008 - The yen's surge prompts the G7 to issue
statement singling out the yen in warning on currency market
volatility.
Dec 12, 2008 - The dollar falls through 90 yen for the first
time in 13 years after a bill to rescue U.S. automakers fails in
the Senate.
Jan 22, 2009 - Hits fresh 13-year high of 87.10 against
dollar, driven up by risk aversion and option-led dollar selling.
Sept 28 - Marks 8-month high of 88.23 aginst greenback, but
later loses ground as Japan's finance minister tries to tone down
earlier comments suggesting intervention was unlikely.
Sources: Reuters, Bank of Japan, Bank of England
(Writing by Mathew Veedon and Eric Burroughs)
88.23 to the dollar on Monday, but later lost ground as Japan's
finance minister tried to tone down earlier comments suggesting
intervention was unlikely, remarks that had prompted speculators
to pile into the rise.
Here are some milestones in the yen's 138-year history:
1871 - The yen becomes Japan's currency as part of the Meiji
Restoration, which marked the start of Japan's modernisation and
opening to the rest of the world. Japan adopts the gold standard.
1949 - After World War Two the dollar's fixed rate is set at
360 yen via the Bretton Woods system, partly to help stabilise
prices in the Japanese economy.
1959 - The dollar/yen exchange rate is liberalised. The
margin of fluctuation is set at 0.5 percent on either side of its
dollar parity.
1963 - The margin of fluctuation is widened to 0.75 percent.
1971 - United States abandons gold standard. The end of
Bretton Woods system of fixed exchange rates forces a realignment
of world currencies.
Dec. 1971 - Smithsonian Agreement sets the dollar/yen
exchange rate at 308 yen, and allows it to fluctuate in a wider
band between 301.07 yen and 314.93 yen.
1973 - Japanese monetary authorities decide to let the yen
float freely against the dollar, and the yen appreciates as far
as 263 to the dollar.
1978 - The yen pushes through 200 to the dollar for the first
time, strengthening as far as 177.
1980 to 1985 - Yen's appreciation halts and partially
reverses despite Japan's big trade surpluses. Higher U.S.
interest rates see Japanese investors put money in dollar assets.
1985 - The Group of Five industrial nations, the predecessor
to the G7, sign the Plaza Accord in which they agree the dollar
is overvalued and to weaken it. The yen climbs from its
pre-accord level of around 240 to 211 in October and 200 in
November, a 20 percent rise in just a few months.
1986 - The U.S. currency falls further to around 190 yen in
January, 167 yen in April and 153 yen in August.
1987 - In February, six of the G7 nations sign the Louvre
Accord, which aims to stabilise currencies and halt the dollar's
broad decline. The dollar still falls from near 153 to 137 in
April and 120.80 by the end of the year.
1988 - On Jan. 4, the dollar falls to a post-war low of
120.45 yen in Tokyo trade, a level that holds as the low for more
than five years. The Bank of Japan intervenes to buy dollars and
sell yen that day on behalf of the Ministry of Finance.
Aug. 17, 1993 - The dollar declines to a new post-war low of
100.40 yen in Tokyo.
June 21, 1994 - The dollar falls through the key 100 yen
level and touches a record postwar low of 99.85 yen in New York
trade before finishing at 100.30 yen.
April 19, 1995 - The dollar hits a record post-war low at
79.75 yen after U.S.-Japanese trade frictions spark heavy
selling. By the end of the year it is near 103.40.
1998 - Asian financial crisis sees yen weaken to nearly 148
yen vs dollar in August, even after U.S. authorities join the
Bank of Japan to buy yen, spending $833 million, in June.
In October, dollar tumbles from near 136 yen to 111.50 yen,
as carry trades unwind following the near-collapse of hedge fund
major Long-Term Capital Management.
1999 - The yen strengthens further despite repeated
intervention, reaching 102 in November.
2001 - Following the Sept 11 attacks on the United States,
Bank of Japan intervenes to sell yen for dollars.
2003 - The Ministry of Finance begins massive intervention to
halt the yen's rise against the dollar, partly to shield Japanese
exporters as the economy remains stuck in its post-bubble slump
and deflation. The MOF spends 20.4 trillion yen ($200 billion)
over the year, nearly all of it to buy dollars and sell yen.
2004 - The MOF spends 14.8 trillion yen ($145 billion)
intervening in the first quarter of the year, including 1.67
trillion yen buying dollars on Jan. 9 alone. But the MOF ceases
intervention in March and has never since resumed.
2005 - The yen hits a high of 101.67 yen in January but then
falls, hitting 121.40 in December. Yen carry trades and Japanese
investors shifting funds into foreign assets drive the slide.
June 2007 - The dollar hits a 4-1/2-year high of 124.14 yen.
July 2007 - Yen's broad depreciation takes it to a 22-year low
on a real effective exchange rate (REER) basis. Since January
2005 the yen loses 25 percent of its value on a REER basis.
March 13, 2008 - The yen hits a 12-year high of 99.77.
Oct. 24, 2008 - Yen hits 13-year high of 90.87 vs the dollar.
Also sets an all-time high of 55.11 against the Australian
dollar, which loses almost a third of its value in just a month
on a massive unwind of carry trades.
Oct. 27, 2008 - The yen's surge prompts the G7 to issue
statement singling out the yen in warning on currency market
volatility.
Dec 12, 2008 - The dollar falls through 90 yen for the first
time in 13 years after a bill to rescue U.S. automakers fails in
the Senate.
Jan 22, 2009 - Hits fresh 13-year high of 87.10 against
dollar, driven up by risk aversion and option-led dollar selling.
Sept 28 - Marks 8-month high of 88.23 aginst greenback, but
later loses ground as Japan's finance minister tries to tone down
earlier comments suggesting intervention was unlikely.
Sources: Reuters, Bank of Japan, Bank of England
Sept 28 (Reuters) - The yen hit JPY= an eight-month high of
88.23 to the dollar on Monday, but later lost ground as Japan's
finance minister tried to tone down earlier comments suggesting
intervention was unlikely, remarks that had prompted speculators
to pile into the rise.
Here are some milestones in the yen's 138-year history:
1871 - The yen becomes Japan's currency as part of the Meiji
Restoration, which marked the start of Japan's modernisation and
opening to the rest of the world. Japan adopts the gold standard.
1949 - After World War Two the dollar's fixed rate is set at
360 yen via the Bretton Woods system, partly to help stabilise
prices in the Japanese economy.
1959 - The dollar/yen exchange rate is liberalised. The
margin of fluctuation is set at 0.5 percent on either side of its
dollar parity.
1963 - The margin of fluctuation is widened to 0.75 percent.
1971 - United States abandons gold standard. The end of
Bretton Woods system of fixed exchange rates forces a realignment
of world currencies.
Dec. 1971 - Smithsonian Agreement sets the dollar/yen
exchange rate at 308 yen, and allows it to fluctuate in a wider
band between 301.07 yen and 314.93 yen.
1973 - Japanese monetary authorities decide to let the yen
float freely against the dollar, and the yen appreciates as far
as 263 to the dollar.
1978 - The yen pushes through 200 to the dollar for the first
time, strengthening as far as 177.
1980 to 1985 - Yen's appreciation halts and partially
reverses despite Japan's big trade surpluses. Higher U.S.
interest rates see Japanese investors put money in dollar assets.
1985 - The Group of Five industrial nations, the predecessor
to the G7, sign the Plaza Accord in which they agree the dollar
is overvalued and to weaken it. The yen climbs from its
pre-accord level of around 240 to 211 in October and 200 in
November, a 20 percent rise in just a few months.
1986 - The U.S. currency falls further to around 190 yen in
January, 167 yen in April and 153 yen in August.
1987 - In February, six of the G7 nations sign the Louvre
Accord, which aims to stabilise currencies and halt the dollar's
broad decline. The dollar still falls from near 153 to 137 in
April and 120.80 by the end of the year.
1988 - On Jan. 4, the dollar falls to a post-war low of
120.45 yen in Tokyo trade, a level that holds as the low for more
than five years. The Bank of Japan intervenes to buy dollars and
sell yen that day on behalf of the Ministry of Finance.
Aug. 17, 1993 - The dollar declines to a new post-war low of
100.40 yen in Tokyo.
June 21, 1994 - The dollar falls through the key 100 yen
level and touches a record postwar low of 99.85 yen in New York
trade before finishing at 100.30 yen.
April 19, 1995 - The dollar hits a record post-war low at
79.75 yen after U.S.-Japanese trade frictions spark heavy
selling. By the end of the year it is near 103.40.
1998 - Asian financial crisis sees yen weaken to nearly 148
yen vs dollar in August, even after U.S. authorities join the
Bank of Japan to buy yen, spending $833 million, in June.
In October, dollar tumbles from near 136 yen to 111.50 yen,
as carry trades unwind following the near-collapse of hedge fund
major Long-Term Capital Management.
1999 - The yen strengthens further despite repeated
intervention, reaching 102 in November.
2001 - Following the Sept 11 attacks on the United States,
Bank of Japan intervenes to sell yen for dollars.
2003 - The Ministry of Finance begins massive intervention to
halt the yen's rise against the dollar, partly to shield Japanese
exporters as the economy remains stuck in its post-bubble slump
and deflation. The MOF spends 20.4 trillion yen ($200 billion)
over the year, nearly all of it to buy dollars and sell yen.
2004 - The MOF spends 14.8 trillion yen ($145 billion)
intervening in the first quarter of the year, including 1.67
trillion yen buying dollars on Jan. 9 alone. But the MOF ceases
intervention in March and has never since resumed.
2005 - The yen hits a high of 101.67 yen in January but then
falls, hitting 121.40 in December. Yen carry trades and Japanese
investors shifting funds into foreign assets drive the slide.
June 2007 - The dollar hits a 4-1/2-year high of 124.14 yen.
July 2007 - Yen's broad depreciation takes it to a 22-year low
on a real effective exchange rate (REER) basis. Since January
2005 the yen loses 25 percent of its value on a REER basis.
March 13, 2008 - The yen hits a 12-year high of 99.77.
Oct. 24, 2008 - Yen hits 13-year high of 90.87 vs the dollar.
Also sets an all-time high of 55.11 against the Australian
dollar, which loses almost a third of its value in just a month
on a massive unwind of carry trades.
Oct. 27, 2008 - The yen's surge prompts the G7 to issue
statement singling out the yen in warning on currency market
volatility.
Dec 12, 2008 - The dollar falls through 90 yen for the first
time in 13 years after a bill to rescue U.S. automakers fails in
the Senate.
Jan 22, 2009 - Hits fresh 13-year high of 87.10 against
dollar, driven up by risk aversion and option-led dollar selling.
Sept 28 - Marks 8-month high of 88.23 aginst greenback, but
later loses ground as Japan's finance minister tries to tone down
earlier comments suggesting intervention was unlikely.
Sources: Reuters, Bank of Japan, Bank of England
(Writing by Mathew Veedon and Eric Burroughs)
INDONESIA'S BANK MANDIRI EYEING CONTROLLING STAKE IN AXA MANDIRI
JAKARTA-
Indonesia's PT Bank Mandiri (JSX:BMRI) said it is set to have controlling stake in life insurance company PT Axa Mandiri Financial Service (AMFS), it owns jointly with a French partner.
The state bank and the country's largest lender in assets, owns 49 per cent of Axa Mandiri and France's AXA holds the majority 51 per cent share.
Agus Martowardojo, the president of Bank Mandiri said the bank wants to acquire at least a 2 per cent stake from the AXA group, adding the acquisition process is expected to be completed before the end of this year.
AXA Mandiri has succeeded in banc-assurance business and grown to rank among three largest in life insurance market share in less than two years after its operation in the country. (28th September 2009)
Indonesia's PT Bank Mandiri (JSX:BMRI) said it is set to have controlling stake in life insurance company PT Axa Mandiri Financial Service (AMFS), it owns jointly with a French partner.
The state bank and the country's largest lender in assets, owns 49 per cent of Axa Mandiri and France's AXA holds the majority 51 per cent share.
Agus Martowardojo, the president of Bank Mandiri said the bank wants to acquire at least a 2 per cent stake from the AXA group, adding the acquisition process is expected to be completed before the end of this year.
AXA Mandiri has succeeded in banc-assurance business and grown to rank among three largest in life insurance market share in less than two years after its operation in the country. (28th September 2009)
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