Home' Trinidad and Tobago Guardian : January 30th 2014 Contents A30
Guardian www.guardian.co.tt Thursday, January 30, 2014
NOTICE FOR SALE
(I) One (1) Used Black & Silver Glass Van
(Caravan) Reg. No. TCX 8866
(II) One (1) Used Grey Nissan Wingroad
Station Wagon Reg. No. PCs 1812
(III) One (1) Used Blue Holland 4WD Wheel
Tractor Reg. No. TCU 6666
√ Bids must be submitted on official bid forms
which are available at any Branch of the ADB.
√ Sealed offers are to be deposited into Tender
Box located ONLY at our Head Office.
√ Bids must be addressed to:
The Secretary Tenders Committee -
Chattel Sale Agricultural Development
Bank #87 Henry Street, Port-of-Spain
√ Chattels are to be sold as is where is; transfer
fees are to be borne by the purchaser.
√ The Bank does not bind itself to accept the
highest or any offer.
√ Unsuccessful bidders will not be acknowledged.
Vehicles can be viewed at Rex Kar Limited
at#198 Uriah Butler Highway, Charlieville,
For further information, please call 623-
6261 ext. 292 / 293 /288 between the hours
of 8:00 a.m. and 4:00 p.m.
BIDS CLOSE AT 3:00 PM ON WEDNESDAY
12TH FEBRUARY 2014
LONDON---It s proving contagious.
First it was the central bank of India. A day later,
yesterday, its counterparts in Turkey and South
Africa followed suit in raising interest rates. But
any hopes they had in supporting their currencies
were dashed as markets continued to fall.
Currencies in emerging economies have been
battered in recent days by a number of factors,
including concern over global growth and the US
Federal Reserve s decision to rein in its money-
A lower currency has the potential to stoke infla-
tion by raising import prices---controlling inflation
is the primary responsibility of central banks around
India s central bank got the ball rolling with its
surprise decision Tuesday to raise its main interest
rate by a quarter of a percentage point to 8 per
cent. Though it justified the move in terms of
keeping a lid on inflation pressures, protecting the
rupee is widely considered to have been a key
Those considerations were clearly behind the
decisions in Turkey and South Africa. The Central
Bank of Turkey said it was raising its main overnight
lending rate to 12 per cent from 7.75 per cent and
more than doubling its one-week rate to 10 per
cent from 4.5 per cent.
The bigger than expected increases come in the
wake of a sharp slide in the Turkish lira which has
hit a record low against the dollar on concerns
over global growth, the prospect that a police
bribery scandal might destabilise the government,
and the change in the monetary policy stance of
Turkey, like other emerging economies, has seen
an influx of foreign investment over the past few
years as the Fed and other central banks
have pumped the prime to shore up their
economies. Now that the Fed has begun
the process of reducing its stimulus, much
of that money is expected to be with-
South Africa s central bank was clear
that the falling rand was behind its decision
to raise its main interest rate by a half per-
centage point to 5.50 per cent.
"The recent depreciation of the rand, if
sustained, will raise significantly the risk
to the inflation outlook," it said in a state-
ment laying out the reasoning behind its
rate hike. "Our inflation forecast shows a
marked deterioration, despite the absence
of clear evidence of domestic demand
The motivation seems clear enough, but
will it work?
Some analysts are skeptical that higher
interest rates will be enough to stem the
volatility and point to the past to suggest
that the endeavour will fail.
"The history of using interest rates to
defend a currency usually ends in tears,"
said Neil MacKinnon, global macro strate-
gist at VTB Capital.
And if one day s reaction in the markets
is anything to go by, the jury will likely
stay out for a while.
Despite an early lift higher, the Turkish
lira is struggling again, down 4.1 per cent
on the day against the dollar at 2.27 lira.
Meanwhile, the South African rand was
down 3 per cent at $0.0888. (AP)
Emerging economies hike rates to defend currencies
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