Socio-Economics History Blog

Socio-Economics & History Commentary

Emerging Markets Currencies Bloodbath Continues …

  • Argentine Peso Crashes Back To Record Low – Emergency 1500bp Rate-Hike Fails
    by Tyler Durden,
    Update 2: Well that’s not supposed to happen!! The peso has just collapsed back to its record lows…

    Update 1: Having met pre-market, it appears the Argentina Central Bank (CBRA) decided that if things got worse they would ’emergency hike’ rates. And as the peso collapsed to 39/USD, they have just raised the key 7-day leliq rate to 60% (a 1500bp hike)! The rate was last hiked from 40% to 45% on Aug 13th. They also confirmed there will no rate cuts until December.

    read more.
  • Rand Tumbles As Government Warns Of “Catastrophe” Unless ‘Land Reform’ Allowed
    In a barrage of headlines that sparked chaos in FX algo markets, The South African government proclaimed proudly that it is opposed to illegal land grabs (sparking a rally in the rand) before humans realized that this is mere statement of fact and that the entire reason for this process is to ‘legalize’ land grabs through reform.

    read more.
  • Lira Plummets After Turkish Central Bank Deputy Governor Quits
    It was already an ugly day for the Turkish Lira, which earlier in the day accelerated its drop for the 4th consecutive session, sending the USDTRY to the highest level since August 14 when the currency crashed over the weekend to the lowest level on record.

    Today’s drop was initially precipitated after Erdogan said on Thursday that Turkey “is not without alternatives” and warning that it won’t “back down over threats.”

    In his latest attack on the US, Erdogan said that “some do not hesitate openly stating the fact that they are trying to drive us into a corner through the economy. There are surely structural issues in the Turkish economy. We know these issues and are working to fix them.”

    Alas, as we noted earlier, judging by the plunge in the lira, the market did not seem convinced by Erdogan’s latest rant, and proceeded to slide further after closing last night down 3.0% at 6.469 which was weaker than where it was on the Friday 3 weeks ago (6.4323) when the panic spread across the market. The only softer closing level was on the following Monday (6.884) but that actually included a big intra-day rally back from the Asian wides. Yesterday was the third day in a row the Lira has weakened (post domestic holidays) while Turkey’s 5yr CDS was also +14.4bps wider and touched 500bps again (recent high was 535.0 on Aug 13).

    read more.
  • Brazil Central Bank Intervenes As Real Crashes Near Record Lows
    The bloodbath in Argentina and Turkey is evident in Brazil also where Bloomberg reports that the central bank just intervened for the first time since June 22.

    BCB reportedly intervened at 4.20 “to provide liquidity” adding that intervention intensity and frequency will depend on the market. The BCB also attempted to provide some confidence by reaffirming that monetary policy is not directly linked to recent market shocks.

    read more.


August 31, 2018 Posted by | Economics | , , , , , , , | Comments Off on Emerging Markets Currencies Bloodbath Continues …

South African Rand Flash-Crashes 10% As Turkey Contagion Spreads

  • South African Rand Flash-Crashes 10% As Turkey Contagion Spreads
    by Tyler Durden,
    Amid increased anxiety over Ramaphosa’s white farmer land confiscation and reports of a $4.2 billion bailout of state-owned enterprises, the Emerging Market rout in Turkey has sparked a collapse in the Rand in early Asia trading.

    The Rand crashed 10% against the dollar almost instantaneously as Asian FX markets opened… 

    As Simon Black warned back in March, when Ramaphosa to push for the constitutional change required to confiscate white farmers’ lands, this would guarantee a banking crisis for the country. Here’s why – a lot of this land that the government wants to confiscate probably has quite a bit of bank debt.

    read more.


August 13, 2018 Posted by | Economics | , , | Comments Off on South African Rand Flash-Crashes 10% As Turkey Contagion Spreads

Something Just Snapped: Currencies Crashing, Dow Dumped, Crude Carnage


  • Has the global currency crisis started? We will know soon. Keep in mind the Illuminist plan: the progression (roughly) of the currency collapse is: the crash will start in 3rd world countries, emerging markets, Asia …. China … Japan … Euro(Europe) … and finally the last currency standing (and to fall) will be the USD. The Illuminati want to preserve their global monetary hegemony and want all currencies to collapse. Finally, they will collapse their world reserve currency USD before introducing the One World Currency backed by gold. Got physical gold/silver yet?
  • Watch the USDJPY (hit 116.xx), the Japanese Yen is rising precipitously against the USD. The Yen carry trade is over. It is going to cause disaster to the trillions of dollars borrowed in Yen. A rising Yen causes massive (Yen) debts to default.
  • Something Just Snapped: Currencies Crashing, Dow Dumped, Crude Carnage
    by Tyler Durden, 
    Update: Offshore Yuan is tumbling before the Fix… (chart top of post) 
    China ripples may be turning into tsunamis. As FX markets creep open, something serious must have snapped. The South African Rand just crashed 10% – the biggest single-day drop since Lehman – to new record lows. At the same time, carry trades are being unwound en masse, smashing USDJPY down to 116.75 (strongest Yen in a year). Somebody do something!!!

    The South African Rand crashed 10% to a record low against the USD of 17.9169
    . This 10% collapse is the largest on record outside of the immediate post-Lehman move…

    Don’t forget – As goes the South African Rand, so goes The World?

    read more.





January 11, 2016 Posted by | Economics | , , , , , , , , , , , | Comments Off on Something Just Snapped: Currencies Crashing, Dow Dumped, Crude Carnage

China, South Africa Sign Currency Swap Deal !


  • China, South Africa Sign Currency Swap Deal !
    China’s central bank signed a currency swap agreement valued at 30 billion yuan ($4.9 billion) with the South African central bank on Friday.

    The agreement lasts for three years, and can be extended upon agreement by both sides, said a spokesman for the People’s Bank of China (PBOC).

    The deal aims to facilitate bilateral trade and investment as well as maintain regional financial stability, China’s Xinhua news agency reported.

    Also, the South African Reserve Bank (SARB) has announced in a statement that the purpose of the agreement is to support trade and investment between South Africa and China, and also to act as a mitigating resource for short term balance of payment pressures.

    The PBOC also signed swap agreements with Armenia and the Republic of Suriname in March. To promote international use of the yuan, China has signed currency swap agreements with more than 20 countries and regions since the onset of the global financial crisis in late 2008.


April 13, 2015 Posted by | Economics, GeoPolitics | , , , | Comments Off on China, South Africa Sign Currency Swap Deal !