Currency Devaluation??? Get your USD now

[Manu Invisibli Ltd.]

Looking for anyone who is concerned about a pending currency devaluation. Premise being that the TT Dollar will soon be allowed to float freely and maintain a price set by the forces of demand and supply as opposed to being artificially kept at the current rate by the Central Bank pumping USD into the economy.

This will greatly affect the buying power of your TTD as let's say you have 600,000.00TTD in savings but the currency is devalued, your money at that point would only be able to buy 400,000.00 TTD worth of goods. If however that same 600,000.00 TTD was in USD, (100,000.00USD) you would be able to buy 600,000.00 TD worth of goods either directly or selling it at the new price higher price point for 800,000.00 TTD.

What do you guys think? Genuinely concerned or not?

If you or anyone you know is co

[make meh care]

i ketching me arse for USD dollars now and 4ever

[crazybalhead]

Can't get USD anyway, so why beat up?

[Country_Bookie]

OP ever hear about a self fulfilling prophecy?

It happens when say, some ppl are concerned about a possible devaluation of the TTD, even though the Central Bank's monthly reports consistently show that there are USD reserves to cover more than a year's worth of imports. They go around telling everyone that the devaluation coming, making everyone fearful. Everyone then tries to sell their TTD and buy USD to hoard. USD that would normally be sold to businesses who need to pay their bills end up being hoarded.
This leads to a shortage of USD, leading to even more speculation about a devaluation, even more hoarding and demand etc. Eventually when the central bank can't defend the currency any longer, they are forced to devalue.
The actions of those who were fearful in the 1st place eventually was partially responsible for the event of which they were most fearful.

[Miktay]

Looking for anyone who is concerned about a pending currency devaluation. Premise being that the TT Dollar will soon be allowed to float freely and maintain a price set by the forces of demand and supply as opposed to being artificially kept at the current rate by the Central Bank pumping USD into the economy.

This will greatly affect the buying power of your TTD as let's say you have 600,000.00TTD in savings but the currency is devalued, your money at that point would only be able to buy 400,000.00 TTD worth of goods. If however that same 600,000.00 TTD was in USD, (100,000.00USD) you would be able to buy 600,000.00 TD worth of goods either directly or selling it at the new price higher price point for 800,000.00 TTD.

What do you guys think? Genuinely concerned or not?

If you or anyone you know is co

Float freely? Ha ha ha ha ha ha ha ha...

No Central Bank lets their currency float freely. That's why its called a managed aka dirty float.

But that's beside the point.

Something or someone has clearly decreased the supply of USD.

[88sins]

The decrease in availability recently has come about due to the effects of various factors & practices, such as the drive in recent years to get Americans to buy U.S. made items to boost their own employment & GDP, as well as the low selling price of oil recently is a major contributor to the issue.


op, doh worry. small countries like T&T are way too dependent on developed nations for far too many things to ever consider free floating their currency & would in short order quickly collapse if ever they did.

[1UZFE]

This cud be merged with d political ched. Im sure some wud defend this.

[daxt0r]

Ay dis wouldn't affect Bank Transfer payment for car right? this is like only strictly cash constriction ?

[88sins]

Ay dis wouldn't affect Bank Transfer payment for car right? this is like only strictly cash constriction ?

i doh believe dis
ah seein it, but jus doh believe it

[pugboy]

6.7 is the rumor

[EFFECTIC DESIGNS]

The decrease in availability recently has come about due to the effects of various factors & practices, such as the drive in recent years to get Americans to buy U.S. made items to boost their own employment & GDP, as well as the low selling price of oil recently is a major contributor to the issue.


op, doh worry. small countries like T&T are way too dependent on developed nations for far too many things to ever consider free floating their currency & would in short order quickly collapse if ever they did.

This puts my mind at ease thanks for explaining it.

[X2]

I am thinking north of 7.5:1... which would devastate the economy.... but then it would force a stronger push towards self sufficiency and boost the manufacturing sector.... changes would take years to adjust.... should have been done 10 years ago...

[janfar]

That will definitely lead the inflation of epic proportions. They need to put proper systems in place to prevent inflation before devaluating the dollar, which I think should be done BTW.

[redmanjp]

well i've heard somewhere that even the US dollar may be devalued anyway so not sure if it will make a difference

https://www.google.com/search?q=us+dollar+devalue&ie=utf-8&oe=utf-8

[88sins]

well i've heard somewhere that even the US dollar may be devalued anyway so not sure if it will make a difference

[url]<span class="skimlinks-unlinked">https://www.google.com/search?q=us+dollar+devalue&ie=utf-8&oe=utf-8</span>[/url]

yes it would. our currency is pegged to the USD, so if the USD value increases, the buying power of our TTD increases with it, if it decreases the buying power of ours decreases, tho not necessarily in direct proportion.

They need to put proper systems in place to prevent inflation before devaluating the dollar, which I think should be done BTW.

dude, for you to actually post this only shows that macro-economics really ain't your strength.

[janfar]

well i've heard somewhere that even the US dollar may be devalued anyway so not sure if it will make a difference

[url]<span class="skimlinks-unlinked">https://www.google.com/search?q=us+dollar+devalue&ie=utf-8&oe=utf-8</span>[/url]

yes it would. our currency is pegged to the USD, so if the USD value increases, the buying power of our TTD increases with it, if it decreases the buying power of ours decreases, tho not necessarily in direct proportion.

They need to put proper systems in place to prevent inflation before devaluating the dollar, which I think should be done BTW.

dude, for you to actually post this only shows that macro-economics really ain't your strength.

It actually isn't.

Want to school me?

[daas]

But it has a knock on effect. Economics don't ever exist in a vacuum so if the USD depreciates then so too will the TTD

[88sins]

here it comes

[88sins]

well i've heard somewhere that even the US dollar may be devalued anyway so not sure if it will make a difference

[url]<span class="skimlinks-unlinked"><span class="skimlinks-unlinked">https://www.google.com/search?q=us+dollar+devalue&ie=utf-8&oe=utf-8</span</span>url]

yes it would. our currency is pegged to the USD, so if the USD value increases, the buying power of our TTD increases with it, if it decreases the buying power of ours decreases, tho not necessarily in direct proportion.

They need to put proper systems in place to prevent inflation before devaluating the dollar, which I think should be done BTW.

dude, for you to actually post this only shows that macro-economics really ain't your strength.

It actually isn't.

Want to school me?

A depreciation in the value of USD will automatically equate to a loss of buying power for both currencies, though not necessarily in direct proportion.
So at 6:1 an item costing 10 USD costs 60 TTD
Devalue the USD and the cost of production goes up, both in the US & in T&T, which means we spend more TTD to buy USD to pay for those goods. So what since cost 10 USD now costs 11 USD, and lets say for example the rate is now 7:1
At a 6:1 rate the cost would be10x6=60
After both currencies devalued the cost would be 11x7=77

So that's an average increase in cost of production materials of 28.3 percent. Note labor costs and both fixed and variable overhead costs that will also go up are not calculated in this increase yet. Then manufacturers will have to increase their selling prices in order to maintain their profit margins.
When salaries are increased to cater to the needs of the working population that percentage and selling price inrease goes up even higher.

Short story shorter. Currency devaluation isn't something any nation encourages.


End of lesson one. Class dismissed.

[Miktay]

A depreciation in the value of USD will automatically equate to a loss of buying power for both currencies, though not necessarily in direct proportion.

So at 6:1 an item costing 10 USD costs 60 TTD


Devalue the USD and the cost of production goes up, both in the US & in T&T, which means we spend more TTD to buy USD to pay for those goods. So what since cost 10 USD now costs 11 USD, and lets say for example the rate is now 7:1

At a 6:1 rate the cost would be10x6=60
After both currencies devalued the cost would be 11x7=77

Tying to measure the value of a variable item with another variable item is difficult.

Its like measuring the length of an elastic measuring tape with another elastic measuring tape.

Exchange rates vary with the supply and demand for each currency.

If the US dollar devalues AND the CBTT keeps the peg to USD the exchange rate can remain unchanged. Of late the CBTT has been selling USD and buying TTD. This has caused TTD to appreciate against USD.

So that's an average increase in cost of production materials of 28.3 percent. Note labor costs and both fixed and variable overhead costs that will also go up are not calculated in this increase yet. Then manufacturers will have to increase their selling prices in order to maintain their profit margins.
When salaries are increased to cater to the needs of the working population that percentage and selling price inrease goes up even higher.

Short story shorter. Currency devaluation isn't something any nation encourages.

True. But the export sectors (esp of big developed countries) have a different perspective. Export companies encourage devaluation as a subsidy to themselves. In a devaluation they can sell more even though the buying power of the local currency has depreciated.

But most export companies hold forin bank accounts denominated in forin currencies. This is something not available to the common man.

End of lesson one. Class dismissed.

[bluesclues]

errr.. if the value of usd increases the buying power of ttd decreases. if the value of usd decreases, the buying power of ttd decreases.

lol this is trinidad. just pray pnm can keep the countrry afloat. where they have a track record of trashing economies. i really dont think pnm has what it takes or knows the route to making trinidad more resilient in the global economy. they will either go rockefeller keynes, or try some new stunts that may or may not work. in the end, i suspect, another deficit budget is coming with the excuse... "we have no choice"

[X2]

So that's an average increase in cost of production materials of 28.3 percent. Note labor costs and both fixed and variable overhead costs that will also go up are not calculated in this increase yet. Then manufacturers will have to increase their selling prices in order to maintain their profit margins.
When salaries are increased to cater to the needs of the working population that percentage and selling price inrease goes up even higher.

Short story shorter. Currency devaluation isn't something any nation encourages.

End of lesson one. Class dismissed.

Thats a lesson ? You should not teach class with one sided views bruh...

True. But the export sectors (esp of big developed countries) have a different perspective. Export companies encourage devaluation as a subsidy to themselves. In a devaluation they can sell more even though the buying power of the local currency has depreciated.

But most export companies hold forin bank accounts denominated in forin currencies. This is something not available to the common man.

Spelling aside... ^^ That's what happens in the real world... and not just to benefit from export markets... but by all means.... keep teaching us with short stories... I love stories...

[88sins]

X2, Miktay
I don't have the time or desire to project possible macroeconomic strategic policies that a foreign state or international conglomerate might adopt. I own 2 balls,neither made of crystal.

And for all your points, the end result is still the same
Currency devaluation is not something lightly done by any nation as a part of their long term planning.

[Miktay]

errr.. if the value of usd increases the buying power of ttd decreases. if the value of usd decreases, the buying power of ttd decreases.

What if the buying power of BOTH TTD and USD decrease?

Einstein had it right. In particle and planetary physics...as with currencies...everything iz relative.

lol this is trinidad. just pray pnm can keep the countrry afloat. where they have a track record of trashing economies. i really dont think pnm has what it takes or knows the route to making trinidad more resilient in the global economy. they will either go rockefeller keynes, or try some new stunts that may or may not work. in the end, i suspect, another deficit budget is coming with the excuse... "we have no choice"

We've been running deficits for some time. Approx 4% last time I checked. Apparently it's the fashion in the developed world. And yuh know how we Trinis to follow forin fashion.

X2, Miktay
I don't have the time or desire to project possible macroeconomic strategic policies that a foreign state or international conglomerate might adopt. I own 2 balls,neither made of crystal.

And for all your points, the end result is still the same
Currency devaluation is not something lightly done by any nation as a part of their long term planning.

Then you haven't been paying attention.

Look at the purchasing power of USD over the long term. What do you see?

[X2]

If you ran a company like you run a country... you'd be out of business or in jail.

The USD 'shortage' will continue to plague us meantime. People will continue to blame 'private hoarders'... but hundreds of millions is put into the economy as needed so it is unlikely hoarding is the main concern.

A devaluation is dangerous business and surely the world is not on our side and we are happily playing the game. Oil prices are being driven down by artificial forces... natural gas prices low like a stance ride. The folly of govt to govt loans will haunt our children, but in the meantime, the only people really afraid of a devaluation are the ones that are not capable of generating FX. If the egg heads in finance (and don't forget the illuminati, old boys club and free masons meetings) were to agree to a devaluation... they need to have a recovery plan in place to curb inflation, especially as stock piling would increase almost immediately.

The current govt has a big task ahead of them... and they already preaching to tighten belt for october.... If it were to take place... either do it now... or do it in 2 years... so I can buy my stuff on amazon first.

[janfar]

When I said dollar in actually meant the TT dollar.

If our money is devalued it means we have to pay more for imported items which will in turn make said items more expensive which will in turn drive inflation.

I aint know much about macro economics but I know a little about logic.

[88sins]

We've been running deficits for some time. Approx 4% last time I checked. Apparently it's the fashion in the developed world. And yuh know how we Trinis to follow forin fashion.

I suppose I could explain the reasons why not all the time a deficit budget is a negative thing, and in some cases is actually a good thing. But right now I ain't in feelin to do al that typing, & if I give you the abridged version you might misinterpret the crux of the point.

[daas]

On the point of deficits being a trend of developed countries



While deficits carry a negative connotation, in the overall scheme of things it can actually be a good thing.

[BRZ]

If there is a devaluation coming this Budget day - Expect prices of everything Imported or with Foreign Input to Increase accordingly.

For a Long time now there has been a lack of Encouragement to "BUY LOCAL", lets see if it will come back to bite people in the rear.

Hope you all ready - Tiida new price might be $300,000.00

[daxt0r]

i get blank about 3 days now for a lil $15000 USD, bank manager saying that the central bank not issuing foreign exchange or something