New Zealand Dollar Drops After Central Bank Sells Currency - where is George Soros ?

Quote from pqt:

If a government says its currency isn't worth sh!t, why should I buy it? :eek:
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if NZD is worth shit then why they need to say that...(?!) :cool:
 
Source : Bloomberg

The Reserve Bank is set to ``strike again'' in the currency market to curb gains in the country's exchange-rate, according to UBS AG, the world's second-largest foreign-exchange dealer.

``The first intervention was a shot across the bow,'' Adam Myers, a currency strategist at UBS in London, said yesterday. ``They'll strike again. They will move the market a lot further if they intervene a second or third time.''

Good to know what UBS´position is in NZD...
 
Quote from Digs:

BUY BUY, the RBNZ has no money...

- Too much money in goes to state social welfare, and the proposed state super scheme
- If the BOJ cant win with intervention, how can little RBNZ
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Because it's about liquidity. They need less ammunition in a market that is rather illiquid. Betting against a central bank that has made it's position known is pure foolishness, especially when that bank has proved it is willing to act on it's position.

Go ahead, try to be a hero. This is a zero sum game and I'll be happy to take your money.
 
Quote from Ivanovich:

Because it's about liquidity. They need less ammunition in a market that is rather illiquid. Betting against a central bank that has made it's position known is pure foolishness, especially when that bank has proved it is willing to act on it's position.

Go ahead, try to be a hero. This is a zero sum game and I'll be happy to take your money.
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Is this really your conviction concerning central bank interventions ? Most probably market players like George Soros and others made a fortune because they were afraid of central bank intervention ? If you take into consideration that Japanese investors are already invested with 17 billion NZD in bonds, does a couple of Millions by RBNZ intervention impress you ? Illiquid markets ? You don´t have a clou about how fast market liquidity is there if it is "needed"...
 
Quote from Ivanovich:

Because it's about liquidity. They need less ammunition in a market that is rather illiquid. Betting against a central bank that has made it's position known is pure foolishness, especially when that bank has proved it is willing to act on it's position.

Go ahead, try to be a hero. This is a zero sum game and I'll be happy to take your money.
More...

So what about some out of the money put options ? Maybe you´re making a fortune with the help of RBNZ !!???
 
THEY ARE SELLING THEIR OWN CURRENCY...the printing press means they have unlimited supply...this situation is nothing like 1992
 
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