Latin America Makes International News! & China continues strengthening its "free floated" currency... having risen 20% since 2005

As described in my previous post... Latin America is sadly trapped within mass media as a mere "attention grabbing story." I in no way what so ever intend to make this sound as if I am criticizing, Reuters, I have nothing but the utmost respect for the organization which is why I use their video "embed" feature. They truely do strive to offer unbiased reporting and are represented by the best of the world's journalists.

This post is simply a effort to convey the particular and unique attention that is given to Latin America as a whole.

Colombian cocaine seizures soar --- Reuters





Ellion joings young communists --- Reuters




High Altitude Training --- Reuters: Finally a bit of positive news... hehe - High Altitude Training for Olympics

Bloomberg LP

Yuan Extends Gains to 20 Percent Since End of Peg on Inflation

By Judy Chen and Kim Kyoungwha

June 17 (Bloomberg) -- The yuan extended gains to 20 percent since China ended a fixed exchange rate to the dollar in 2005, passing the milestone as Treasury Secretary Henry Paulson prepares to meet with Chinese officials.

The currency climbed to a post-peg high of 6.8918 per dollar today as the People's Bank of China seeks faster appreciation to curb the cost of imports and slow inflation. The so-called Strategic Economic Dialogue in Annapolis, Maryland today and tomorrow will focus on energy and the environment after the yuan's advance eased trade tensions with the U.S. that dominated previous meetings.

``Inflation remains the dominant policy issue in China,'' said Sue Trinh, a currency strategist with Royal Bank of Canada in Sydney. ``The focus will be on more rapid appreciation of the yuan.''

The currency climbed 0.12 percent to 6.8918 a dollar in Shanghai as of 1:03 p.m., from 6.9004 yesterday, according to the China Foreign Exchange Trade System. It's risen 1.7 percent this quarter compared with a 4.2 percent advance in the previous three months.

The yuan may rise to 6.5 by the end of 2008, Trinh said.

China's trade surplus, which rose to a record in 2007, narrowed in May, for the first time in five months, while foreign-exchange reserves surged 40 percent to $1.68 trillion in March, flooding the economy with cash and fueling inflation.

Trade-Weighted Index

Goldman Sachs Group Inc. said in a report yesterday that the yuan will gain about 10 percent in a year as China stems inflation that slowed to 7.7 percent in May from the almost 12- year high of 8.5 percent in April. To cool inflation, the central bank has ordered banks to set aside bigger reserves five times this year after raising interest rates six times last year.

The currency has strengthened almost 6 percent against the dollar this year, nearing the 7 percent gain for all of 2007.

The Westpac Nominal Effective Exchange Rate, a trade- weighted index for the yuan that includes the euro and the yen, has climbed 5.7 percent so far this year, compared with the 3.4 percent gain for all of 2007. Gains in the yuan may accelerate versus the euro as policy makers calm criticism from officials in Europe and the dollar rises against major currencies.

``We are expecting to continue to see trade-weighted appreciation,'' said David Mann, a senior currency strategist at Standard Chartered Plc in Hong Kong. ``So the moves in the yuan may be more dictated by the broad dollar than was the case previously.''

Reform is Critical

China needs to move ``more quickly'' on yuan appreciation and exchange-rate reform will be ``critical'' to the country's social stability, said Paulson on June 10 in Washington. China's central bank said on May 14 that it will further increase the exchange rate's flexibility to curb price increases.

Gains in the currency attract speculative capital, injecting cash into the financial system already awash with money from the trade surplus and foreign direct investment.

China will strengthen monitoring of money inflows after the surplus for the capital and financial account, a measure of investment flows, jumped more than seven-fold in 2007 to $73.5 billion from $10 billion a year earlier, the State Administration of Foreign Exchange said on June 5.

The People's Bank of China said yesterday in a report that investors' expectations for continued appreciation of the yuan are attracting inflows of ``hot money,'' and should such expectations turn around, a ``massive outflow'' of money will affect China's financial security.

Forward Rates

The central bank may ``unexpectedly adjust the pace of yuan appreciation, like the stagnation in April, to deter investors betting on one-way appreciation,'' said Yang Shengkun, a currency analyst in Beijing at China Citic Bank Co., a unit of China's biggest state investment company.

China slowed yuan gains to 0.35 percent in April, the smallest monthly advance in more than a year, prompting traders to pare bets for the extent of yuan appreciation in the next 12 months. Inflows of ``hot money'' into China may have reached $500 billion last year due to trade, investment and firms borrowing abroad, according to research by Shanghai Securities Co. published in the China Securities Journal.

One-year non-deliverable forwards contracts, agreements in which assets are bought and sold at current prices for future delivery, show traders are betting on a 6.6 percent rise in the yuan to 6.4680 in the next 12 months. The yuan will reach 6.65 per dollar by year-end, according to the median estimate of 23 analysts surveyed by Bloomberg News.

To contact the reporters on this story: Judy Chen in Shanghai at xchen45@bloomberg.net; Kim Kyoungwha in Beijing at kkim19@bloomberg.net.

Last Updated: June 17, 2008 01:21 EDT


Sneaking this in at the end of the post for all those out there who know what Bembos is--the Peruvian Fast Food Chain which competes quite admirably with Mc Donalds, KFC and other mainstream and international fast food names. The video is a bit long and can get boring, but here is the explanation of it from youtube. In short... a Peruvian fast food chain is expanding to India. It is simply incredible the exchange going on in today's globalized society, 20 years ago no one would have thought emerging markets like Peru and India would be cooperating in fast food among all else. The first video simply describes the deliciousness that is Bembos... sadly it's in Spanish, and I apologize for those of you out there who do not speak / understand it. There are subtitled videos available if you use either my search provided by google or go straight to youtube and simply type in "Bembos."

Copy/Pasted from Video Description on youtube.com

Bembos -- Best Burger in the World




The South American fast food chain Bembos opened its first outlet in Delhi NCR yesterday at the Great India Place Mall in Noida.

Bembos has been maintaining its leadership in hamburger sales in front of strong competitors in the international market like Mcdonalds & Burger King in South America and are now eying the Indian market.

"Our three Bembos outlets in Mumbai are doing exceptionally well & we are very excited at the proposition of catering to people in the Delhi NCR region," said an upbeat Anil Kapur, the master franchisee of Bembos in India.

So what makes bembos special? Apart from the colourful interiors, the size, taste & price points are the USP of the Bembos burgers.

"We are elated at Bembos coming to India," said Carlos A Yrigoyen, the acting Ambassador of Peru in India, who along with his wife Regina inagurated the outlet. "Nothing is as delicious as a Bembos grilled burger, " Yrigoyen said.

Also present at the inaguration were Rahul Mittra CEO Brandsmith with wife Sarina, Dimple Kapoor, Bharati Chajjed Associate Director Standard Chartered, apart from heavy print & electronic media.

"Brandsmith is very happy to be associated with such a premium brand from South America, " said Rahul Mittra who has been accredited with successfully managing international brands like Ceres juices from South Africa & Weetabix from UK." We will ensure it gives the big daddies a run for their money, "said Mittra.

H.S. Communication.