No more dollars in Brazil nor Argentina - URGENT

[bennycog]

any more news steve?

[Steve_A]

Hi bennycog,

Yesterday the bourse was closed twice when the BOVESPA dropped 16%.

It's only 9:00 in the morning here so I'm waiting to see what happens today.
It was interesting because over the weekend President Lula said that even though the crisis in the US appears to be the Tsunami, Brazil would only receive the tail end of it. Twenty four hours later the bourse took a nosedive and had to be closed and the Real was devalued by nearly 8% (possibly the reason to suspend trading - but I will find out the official reason).

The Real being devalued against the dollar for the moment, for visitors coming to Brazil is useful as they get even more Real for their buck. Over here we have 'Paralelo' exchange shops which are unofficial bureau de changes.

In the meantime Asian markets were mixed, although the important one (Japan) was down and the Australian government reduced interest rates by 1%, which is a lot.

I'll keep you posted.

Best regards,

Steve

Originally Posted by bennycog

any more news steve?

[Carol]

We already know that the dollar is not being used for oil with some countries but what I wonder about is how does this trickle down to the traveler who wants to use dollars in other countries? Is this where the credit card rules meaning a credit card will be accepted but the dollar not?

Or is this story just a flash in the pan?

[Steve_A]

Hi Carol,

If you're planning a trip, do some research as to how much you will probably need in local currency and cange the money before you leave. You could consider travelling with Euros also, but you would be charged twice for the exchange ie. Dollar to Euro - Euro to local currency. I know this sounds strange but also check to se the health of your bank and if it as branches where you're going to and finallycheck out the possibilities of travellers cheques.

Now, we are all to assume that the whol kiboodle is going to crash, so you would need to travel with something that you can change anywhere, like gold (even second hand gold jewelry) which you could change at your destination, but I think the idea is to arrive in your chosen destination before the real trouble starts.

Best regards,

Steve

P.S. If the story is a flash in the pan, only time will tell, but as I posted another time, if you do nothing you could lose everything. If I were most people, I would 'go on holiday' for a while and see how things lie after a few weeks... the best case scenario is that you had a decent holiday.

Originally Posted by Carol

We already know that the dollar is not being used for oil with some countries but what I wonder about is how does this trickle down to the traveler who wants to use dollars in other countries? Is this where the credit card rules meaning a credit card will be accepted but the dollar not?

Or is this story just a flash in the pan?

Iceland suspends trading in bank shares as financial crisis hits Scandinavia hard
http://www.wsws.org/articles/2008/oc...icel-o07.shtml

Iceland announces Russian loan, nationalizes bank
http://www.iht.com/articles/ap/2008/...land-Banks.php

REYKJAVIK, Iceland: Iceland nationalized its second-largest bank on Tuesday under day-old emergency legislation and said it was negotiating a €4 billion (US$5.4 billion) loan from Russia to shore up the nation's finances amid a full-blown financial crisis.

The central bank also loaned €500 million (US$680 million) to Kaupthing, the country's biggest bank, to tide it through the crisis.

[Steve_A]

Hi bennycog,

SÃO PAULO, 7th of October - 2008 - The (commercial) Dollar closed 4,90% higher, quoted at R$ 2,311 to buy and R$ 2,313 to sell. In the futures market, the contracts that mature in November rose 5,98%, to R$ 2,323 after 434,2 thousand transactions. Based on the interbank deals, the market estimetes that the Ptax (average of the quotes cecked by the Central Bank) stayed around the R$ 2,2001 mark to sell.

SÃO PAULO, 7 de outubro de 2008 - O dólar comercial fechou em alta de 4,90%, cotado a R$ 2,311 na compra e a R$ 2,313 na venda. No mercado viva-voz de dólar futuro, os contratos com vencimento em novembro subiam 5,98%, a R$ 2,323, após 434,2 mil negócios. Com base nos negócios no interbancário, o mercado estima que a Ptax (média das cotações apurada pelo BC) tenha ficado em R$ 2,2001 na venda.

(Simone e Silva Bernardino - InvestNews)

The BOVESPA is losing around 5% today.

The DOW is being hit again with the Bank of America CP losing 21,88% just today!

Best regards,

Steve

Originally Posted by bennycog

any more news steve?