![]() It doesn’t help when your own national investors and corporations are offloading the domestic currency as fast as they can. Even the continent’s more aligned economies, Chile, Mexico, Peru, and Colombia, are slowing down as a result of declining demand for commodities, in particular from China, as well as a strengthening dollar. Venezuela’s Bolivar is collapsing. Argentina continues to languish neck-deep in stagflation. The Brazilian real has lost close to a fifth of its value so far this year. ![]() Indeed, in a July 15 report, Morgan Stanley strategists warned clients that they could not identify a single Latin American currency worth recommending. The countries that rode the wave of rising commodity prices “are now seeing the other side,” he said. One result is that traders on the $5.3-trillion-a-day Forex exchange are fast losing faith in the region’s currencies. “It’s hard to say anything positive,” Win Thin, global chief of emerging markets strategy for Brown Brothers Harriman, said about Latin America. The main cause of the pain has been the collapse of the global commodity complex, owed in large part to China’s less-than-smooth landing. Five years ago it was one of the world’s fastest growing regions, with 6.1% GDP growth this year, the way things are going, not so much. And nowhere is this truer than in Latin America. ![]() There are two problems, however: first, after intervening with daily auctions for the last four months, the Bank of Mexico’s foreign currency reserves are at their lowest point since October last year and second, the likelihood is that central bank intervention will have limited, if any, effect, for the simple reason that the current downward trend is a result of forces far beyond Mexico’s borders.Īt the beginning of 2014, the IMF warned in an uncharacteristically prescient forecast that things could turn ugly in emerging markets. The worse the situation gets, the more likely it is that Mexico’s Central Bank will intervene with its own mini bazookas. Particularly hard hit are companies with heavy debt loads denominated in dollars. With external trade accounting for 63% of the national economy, the impact is unavoidable. Some imported goods, including medical appliances, plastics and petrochemicals have registered price increases of between 10% and 15% over the last couple of months. Since then, the peso’s value has continued to slide against the dollar, and the pain is beginning to show.Īs El Financiero reports, although inflation, at around 3%, remains at historically low levels, pressures are beginning to rise. The Commission upped the ante, announcing it would conduct daily auctions of $52 million, without setting a minimum price requirement. Like so many central bank interventions these days, it failed: by March, it took 15 pesos to buy a dollar. In December last year, with the exchange rate dropping to 14 pesos to the dollar, the country’s Exchange Rate Commission launched a currency intervention program in a bid to prop up the peso, or at least stymie its slide. This is a change that went into effect earlier this month, so it's still in the learning phase.At 16.25 pesos to the dollar currently, the peso has lost roughly 20% of its value against the dollar within a year. It's a way to help the seasonal CMs pick up shifts first before FT CMs grab up all the OT. If no one picks it up after a couple days, then it becomes available to people for OT. 1st the shifts are opened to people who would be on regular time. If it's already an OT shift for them, they can trade it to someone as an OT shift.Īs for EHH, shifts on the hotline open in phases. If the person is scheduled on regular time, they can only trade the shift to others who would be paid regular time. That will help keep your overall average down. The best way to manage it is to work about couple weeks way above 24, then work a couple weeks below it. It doesn't matter if you work 25 or 55, anything over 24 is calculated towards that Cap. If you work over 24 hours a week for X time (I think it's half the year?) then you'll get capped to 24. The CAP is related to the magic number - 24 hours.
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