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Sunday, February 14, 2016

BACKDOC UPDATE , 14 FEB

Backdoc Saturday Night: "HUGE NEWS" Feb 13, 2016


BACKDOC:  FAMILY!  I HAVE SOME HUGE NEWS!

IN FACT THE BIGGEST I'VE EVER BEEN PRIVILEGED TO SHARE!

I AM TRYING TO REACH THUNDER TO BRING IT TO YOU PROPERLY!

JUST A CLUE ? OK, I WILL JUST SAY IF SOMETHING HAS ALREADY LAUNCHED WHAT IS LEFT TO DO?

RIGHT! "IMPLEMENTATION DAY" AS RUSSIA AND IRAN SAID!

WHAT DID I TELL YOU ABOUT CHINA? HEE HEE

BE BACK SOON!


China's Central Bank Says No Basis for Continued Yuan Decline

China’s central bank governor said there was no basis for continued depreciation of the yuan as the balance of payments is good, capital outflows are normal and the exchange rate is basically stable against a basket of currencies, according to an interview published Saturday in Caixin magazine.

Zhou Xiaochuan dismissed speculation that China planned to tighten capital controls and said there was no need to worry about a short-term decline in foreign-exchange reserves, adding that the country had ample holdings for payments and to defend stability.

The comments come as Chinese financial markets prepare to reopen Monday after the week-long Lunar New Year holiday. The country’s foreign-exchange reserves shrank to the smallest since 2012 in January, signaling that the central bank sold dollars as the yuan fell to a five-year low. The weakening exchange rate and declining share markets in China have fueled global turmoil and helped send world stocks to their lowest level in more than two years.

The bank will not let “speculative forces dominate market sentiment,” Zhou said, adding that a flexible exchange rate should help efforts to combat speculation by effectively using “our ammunition while minimizing costs.”

Policy makers seeking to support the yuan amid slower growth and increasing outflows have been using up reserves. The draw-down has continued since the devaluation of the currency in August and holdings fell by $99.5 billion in January to $3.23 trillion, according to the central bank on Feb. 7. The stockpile slumped by more than half a trillion dollars in 2015.

China has no incentive to depreciate the currency to boost net exports and there’s no direct link between the nation’s gross domestic product and its exchange rate, Zhou said. Capital outflows need not be capital flight and tighter controls would be hard to implement because of the size of global trade, the movement of people and the number of Chinese living abroad, he added.

The country will not peg the yuan to a basket of currencies but rather seek to rely more on a basket for reference and try to manage daily volatility versus the dollar, Zhou said. The bank will also use a wider range of macro-economic data to determine the exchange rate, he said.

http://www.bloomberg.com/news/articles/2016-02-13/china-s-central-bank-says-no-basis-for-continued-yuan-decline

Thunderhawk:   OKAY DOC START SPREADING THE NEWS!!!!!

BACKDOC:  WOW!   WHAT A PRIVILEGE TO SHARE THIS!

LOVE YOU ALL!   DOC

************

Kristi:  Backdoc: I know you are really excited and I read the article. But, I am not sure what it means when they said they would "The country will not peg the yuan to a basket of currencies but rather seek to rely more on a basket for reference and try to manage daily volatility versus the dollar, Zhou said. The bank will also use a wider range of macro-economic data to determine the exchange rate, he said."

Would you mind giving me some clarity on this.

Also, when you say we have launched and waiting for the implementation, will that take place the US's tomorrow as it is China's Monday.

BACKDOC:  OK, WHAT THEY ARE SAYING IS THAT THEY ARE NO LONGER PEGGED TO THE DOLLAR BUT ARE PEGGED TO A REFERENCE BASKET OF CURRENCIES!

THINK OF IT AS A SOFT PEG TO OTHER CURRENCIES FOR NOW! THE IMPORTANT POINT IS THEY HAVE DEPEGGED FROM THE DOLLAR! YIPPIE!    DOC   IMO

Mountainman:  And That Is A HIGH (8) BALL.....CORNER POCKET!!!!!!!!
Thanks Guys.....Mountainman

OK....... IRAQ/IRAN........It's YOUR TURN.....ISN'T IT!!!!!!!!

ACTIONS MEAN THINGS!

WHO’S TALKING TONIGHT? GLAD YOU ASKED! CHINA!

REMEMBER ABOUT 3 DAYS AGO I MENTIONED THAT CHINAS’ CURRENCY HAS BEEN UNDER PRESSURE BECAUSE OF ITS PEG TO THE DOLLAR. WELL, THAT PRESSURE IS NOW OVER AS I PREVIOUSLY PREDICTED! WOW!

AS THE CENTRAL BANK GOVERNOR SAID, THEY HAVE BEEN BURNING THEIR RESERVES TO DEFEND THEIR CURRENCY UP TILL WHEN FAMILY? RIGHT! DECEMBER 7TH! WOW! THIS IS HUGE NEWS!

SO WHAT DIDN’T THEY TELL YOU? THEY DID SOMETHING ON THE 8TH JUST LIKE WE THOUGHT! THEY LAUNCHED SOMETHING DIDN’T THEY? YES, YES, YES!

ACTIONS MEAN THINGS!

WHO’S TALKING TONIGHT? GLAD YOU ASKED! CHINA!

REMEMBER ABOUT 3 DAYS AGO I MENTIONED THAT CHINAS’ CURRENCY HAS BEEN UNDER PRESSURE BECAUSE OF ITS PEG TO THE DOLLAR. WELL, THAT PRESSURE IS NOW OVER AS I PREVIOUSLY PREDICTED! WOW!

AS THE CENTRAL BANK GOVERNOR SAID, THEY HAVE BEEN BURNING THEIR RESERVES TO DEFEND THEIR CURRENCY UP TILL WHEN FAMILY? RIGHT! DECEMBER 7TH! WOW! THIS IS HUGE NEWS!

SO WHAT DIDN’T THEY TELL YOU? THEY DID SOMETHING ON THE 8TH JUST LIKE WE THOUGHT! THEY LAUNCHED SOMETHING DIDN’T THEY? YES, YES, YES!

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