| Illegal forex deal: Director is fined
Kota Kinabalu: A company director was fined RM2,000 or three months' jail by the Magistrate's Court here Tuesday for illegal involvement in a foreign exchange (forex) deal with a foreign firm three years ago. Local Jeffary Mudi, 35, of Asset Forrich Sdn Bhd (AFSB), admitted before Magistrate Azreena Aziz to committing the offence between Jan. 10 and May 20, 2005 at Lot A1202-7-11, 12th floor, Wisma Merdeka, here. The company was also ordered to pay RM2,000 fine for the same offence. Mudi admitted to having been involved in the forex deal, without the permission from the Foreign Exchange Controller, with a New Zealand firm, Goldex Equities Limited, whose registered address was Level 2, Windsor Court, 128-136, Parnell Road, Auckland. Mudi and the company had committed an offence under Section 4(2) of the Foreign Exchange Control Act 1953 (Act 17) read with para 9(b), Section 2, fifth Scheduled of the same Act, which is punishable under para 7(2), Section 2, Fifth Scheduled of the same Act.
Australian Dollar Advances as Commodities, Gold Prices Increase
Feb. 9 (Bloomberg) -- The Australian dollar advanced for a sixth day, tracking a rise in the price of commodities the nation exports, such as gold. The currency headed for the biggest weekly gain in two months after the Reuters/Jefferies CRB index of 19 commodities jumped 1.5 percent to the highest in a month. Raw material exports add about 14 percent to economic growth. Australia's dollar rose above 78 U.S. cents yesterday for the first time in two weeks after the unemployment rate fell to a 31-year low. ``The Australian dollar continues to grind higher, extending yesterday's post-data gains,'' said Danica Hampton, a currency strategist at Bank of New Zealand in Wellington. ``The gain in base and industrial metals is providing some support.'' The currency bought 78.17 U.S.
London Extends Lead Over New York in Currency Trading (Update3)
Jan. 22 (Bloomberg) -- London extended its lead over New York as the world's biggest center for currency trading in the six months through October, according to central bank surveys. Trading grew to an average $1.06 trillion a day in London during October, up 6 percent from April, and shrank 7.5 percent in New York to $534 billion in the period, semi-annual surveys conducted by the Bank of England and Federal Reserve showed. ``London has always been the centre of foreign-exchange,'' said Ian Stannard, a currency strategist in London at BNP Paribas SA. ``It's continuing to grow and extend that lead.'' A growing share of the city's volume is from currencies other than the euro and dollar as eastern Europe economies expand and investors take advantage of Japan's low interest rates to sell yen and seek higher yields elsewhere.
Chinese banks ask for more hedging instruments to reduce exchange ...
Major Chinese banks are asking for more hedging instruments that will allow them to juggle foreign exchange losses as the yuan appreciates. "As the yuan increases in value, Chinese banks are becoming more exposed to potential exchange losses when they convert overseas profits into yuan and conduct foreign exchange transactions with their own assets," said Wen Bin, a senior strategic analyst with the Bank of China (BOC). "Chinese commercial banks need more derivative instruments to hedge against exchange losses," said Wen, adding that the country's foreign currency exposures of 80 billion U.S. dollars were mainly concentrated in the Industrial and Commercial Bank of China (ICBC), the China Construction Bank (CCB), Bank of China and Bank of Communications.
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