Next in the Currency Wars: Denmark

[Diplomatico]

"After half a decade of growing ever sleepier, the currency market has started the year with its most volatile period since 2011. As the victims of the Swiss franc detonation lick their wounds, Denmark is battling to avoid its krone becoming the next victim of the global currency wars, wielding a combination of negative interest rates plus market interventions to sell its own currency plus scrapping government bond sales as it defends its peg to the euro. I've seen this movie before; it never ends well.

Denmark sprang a rate-cut surprise last week; the central bank will now charge you 0.5 percent for the privilege of having kroner on deposit. The bank's third easing in less than two weeks came after it spent as much as 100 billion kroner ($15 billion) this month trying to weaken its currency, according to estimates by Scandinavian lender Svenska Handelsbanken. Taking on traders is an expensive business."

http://www.bloombergview.com/articles/2015-02-01/guess-who-the-next-casualty-of-the-currency-wars-is-?cmpid=yhoo

[elgordo38]

Let George Soros have a run at them. He did a number on the bank of England some years ago.

[SheungWan]

Let George Soros have a run at them. He did a number on the bank of England some years ago.

Soros was more successful with weakening currencies eg the Pound and the Baht, but failed with the HKD, so bear in mind if you want to line up by buying Danish Krone.

[StasD]

Soros bought a lot of Ukranians debts. I hope he will get back nothing

[Sophon]

Bear in mind that Denmark has successfully defended the Danish Krone peg since 1986 - first against the Deutsch Mark and later the Euro. And it's a lot easier for a Central bank to defend it's currency against people trying to strengthen it than it is when they are trying to drive it down.

Sophon

[rickirs]

I'd rather be holding the Danish Krone than the Russian Rubble. Denmark has a far better opportunity to recover its currency than Russia.

[Sophon]

I'd rather be holding the Danish Krone than the Russian Rubble. Denmark has a far better opportunity to recover its currency than Russia.

Totally different situations. The market is trying to strengthen the Krone because it believes it's undervalued and will go up if the peg against the Euro is broken (like happened to the Swiss Franc). The pressure on the Ruble is downwards because of their total reliance on oil exports combined with the sanctions. If the Danish Central Bank wanted the Krone to strengthen, all it would have to do is let the market have it's way.

Sophon

[TM77]

I`m buying DKK cash for a better rate than any bank in Hua Hin ( Check rates at Bank foreign currency rates page)

Meeting in front of Kasikorn Market Village any time during bank hours.Just let me have a pm in deutsch or english with the amount you want to change to Baht, then we agree on rate and meeting time)

[SheungWan]

I`m buying DKK cash for a better rate than any bank in Hua Hin ( Check rates at Bank foreign currency rates page)

Meeting in front of Kasikorn Market Village any time during bank hours.Just let me have a pm in deutsch or english with the amount you want to change to Baht, then we agree on rate and meeting time)

The guideline I use for personal exchange of baht for ___________ is the TT Exchange mid-point. Both parties = advantage.

[SheungWan]

Soros bought a lot of Ukranians debts. I hope he will get back nothing

When you are able to walk the walk, do let us know.

[elgenon]

The American dollar is too strong. Needs to have negative rates too. War time!?

Some smart people are worried about deflation.

[SheungWan]

The American dollar is too strong. Needs to have negative rates too. War time!?

Some smart people are worried about deflation.

That presumably doesn't include the gold bugs who are permanently fixated on inflation.

Edited February 4, 2015 by SheungWan

[UDONJIM]

Let George Soros have a run at them. He did a number on the bank of England some years ago.

Soros was more successful with weakening currencies eg the Pound and the Baht, but failed with the HKD, so bear in mind if you want to line up by buying Danish Krone.

Hey SheungWan,

About 4-6 weeks ago, I predicted 'currency wars' in Asia and a devaluation of the Baht (it's just about to happen) and you lambasted me. What's your'e take on that situation now?

[Jaggg88]

Let George Soros have a run at them. He did a number on the bank of England some years ago.

Yes he did, when the UK tried to keep within the limits of the 'Exchange Rate Mechanism'. A financial device designed to prove the UK were strong enough to join the Euro. UK interest rates hit circa 15% in an attempt to prop up the £. It failed miserably and cost many ordinary ppl their homes, but the good news was it stopped the UK joining the Euro. Soros made billions! The Bank of England lost billions.