South Korea - Start Controls Won Currency Exchange Rate.

Reporting SEOUL - The latest news of economic challenge, 'The South Korean government' announced the start to limit currency trading in the banking sector.

Transactions in banks and financial institutions 'south korea' which is bounded forward currency transactions, cross-currency swaps and currency non-deliverable forwards.

Reuters, Sunday, 13 June 2010, this step is intended to control short-term debt and fluctuations in the flow of funds so that it can suppress the economic risk.

The financial authorities 'south korea' fear a sharp decline in the won exchange rate, as long as world market turmoil caused by the debt crisis will negatively affect European Affairs of ginseng. 'South Korea' to stabilize the exchange rate and reduce overseas borrowing.

"This policy aims to reduce fluctuations in capital flows that could trigger a systemic risk to the state and not the intervention to a specific value, said Minister of Finance, financial regulators, and 'South Korean Central Bank'," in a joint statement.

He added that countries should prepare a special rescue tools for critical instruments such as the high volatility in capital flows.

Restrictions should be implemented in October, and is applicable to local and foreign financial institutions. But official data from Government 'south korea' indicates a foreign bank must immediately implement this new rule.

These new rules will reduce the forward and futures transactions by bank and non-bank institutions in the 'south korea' by 50 percent. Capital requirements for foreign banks increased 240 per cent of bank capital.

As a result, local banks' capital requirements is only one thirtieth of a foreign bank. Currently, foreign bank derivative transactions reached 300 percent of their capital, while local banks have visited only 15.6 persen.Terimakasih (otofinanceinfo)

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Prevent Crisis Spreads Greece, the EU Prepare Dana M. USD670.

Monday, May 10, 2010 - 9:02 pm

Reporting BRUSSELS - The European Union finally agreed on an emergency fund amounting to 500 billion euros or equivalent USD670 billion to protect the euro zone countries from the financial market wolfpack.

As quoted from the 'Reuters', on Monday, December 10 mei 2010. decision deals a substantial emergency fund can be taken in order to prevent the spread of the debt crisis go on and Greece.

As is known, that the euro currency last week plummeted to its lowest point during the last 14 months against the dollar. But now, the euro climbed almost two percent in early trading in Asia, and on trade in the U.S. rose by two percent.

While the price of gold, regarded as a safe haven investment, fell by 1.5 percent after touching a record high last week.

Where the European Union plans to take out a loan in the form of loan and loan guarantee fix the value of 600 billion euros, or USD805 billion. Where is the loan guarantee for a loan of euro zone countries worth 440 billion euros, which amounted to 60 billion euros from the stabilization fund and an additional 100 billion euros of funds from the International Monetary Fund loans (International Monetary Fund / IMF).

Market mechanism seems to threaten members of the eurozone countries that have debt will suffer the same fate as Greece. Safety net intended to protect other countries that have swollen budget including Portugal, Spain and Ireland.

Greek and addressing the crisis, the IMF has approved meminjaman 30 billion euros, bringing the total funds collected for the bailout Greece mencapaui 110 billion euros. Where for 5.5 billion euros will be disbursed immediately. I hope this information is useful to you. (otofinanceinfo)

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Indonesian Government's Proposed No Negotiation about Tax Ratio

Yogyakarta Reporting - Economist Mutual Fund Research Institute, "Purbaya Yudhi Sadewa" suggested the government should not negotiate with the Indonesian House of Representatives about the tax ratio (the ratio of taxes).

Because it concerns the performance in achieving the targets agreed upon with the assumption that the House of Representatives.

"The Indonesian government has given the power to run the government. It is better to receipts submitted to the Indonesian Government not to discussions with the House. Later on when baseball on target then can there dimaki-maki (DPR), but do not negotiate on it," he said when met at the office of Coordinating Minister for Economic Affairs, Jalan Banteng Square, Jakarta, Friday (16/4/2010).

In addition, he also advises not to try to raise the tax ratio for tax ratio was determined based on the target has been achieved the Indonesian Government. If still want to be raised still need some time.

"Do we determine the numbers in the sky because it will be in the clouds. Other countries there are 20 percent, but please do not be achieved within one to two years, needs fundamental change," he said.

Earlier, experts from the input document of Commission XI of DPR RI Budget Simulation Macro-P Asumis cited okezone 2010, the House Commission XI forcing the Indonesian government to increase the tax ratio to 13.5 percent of GDP this year to support the creation of economic growth 6.2 percent in order to keep the budget deficit remained 2.1 percent of GDP.

In the data, with the House Commission XI on calculating tax ratio 13 per cent of gross domestic product (GDP) Rp6.050 trillion, the tax collection increased to Rp786, 5 trillion, bringing the total state revenues increased to Rp1.028 trillion.

With these assumptions, there are a number of scenarios that appear related to the correlation between the tax ratio, economic growth and budget deficits.

However, if spending is maintained at Rp1.104, 6 trillion, then state revenues potentially up to Rp1, 028 trillion, with a permanent record deficit Rp76, 55 trillion. If the budget deficit was kept Rp129, 8 trillion, or 2.1 percent, the state expenditure could be increased to Rp1.157, 8 trillion.

Meanwhile, if the Government of Indonesia is able to raise the tax ratio to 14 percent of the required increase of 16 percent or a total of Rp847 trillion. If the tax ratio increase of 15 percent of the tax revenue needed Rp907, 5 trillion or an increase of 24 percent.

Even if, based on initial demand of the House of Representatives Commission XI tax ratio increase of 16 percent, the government of Indonesia needs to boost tax revenue rose by 32 percent or a total of Rp968 trillion.

In the meeting last night, the amount of tax ratio is yet to be decided and will be specifically discussed between the Government of Indonesia and the House of Representatives Commission XI on next week. (Martinhaeszone)

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Mutual Funds Can Be an Asset Base KPD

NEW YORK Reporting - In No V regulation G6 of Customer Funds Management Guidelines Based on the Nature Fund Management Agreement and the Individual by Bilateral Investment Manager to be signed by the Capital Market Supervisory Agency and Financial Institution (Bapepam-LK) stated, mutual funds, certificates of deposit, and KIK EBA is an effect that can be an asset base in fund management contracts (KPD).

"Deposits that include the effect, but we limit may only be 25 percent," said Chairman of Bapepam-LK Fuad Ahmad Rahmany in Jakarta.

He explained that these restrictions because the deposit is a banking product, while investment managers (MI) is the manager of capital market securities. If the placement of deposits as the underlying asset exceeds the limit of rupture determined in the regulation, the regulator will give a deadline for fund to reduce the rates.

However, if MI is ignored, Bapepam-LK will confront while on the repo, it still will look into the matter whether the entry into securities? However, according to him, in terms of accounting, including securities, while it substantially repo borrowing money.

"It is still debated. (Repo) are still in the gray area," he said.

The plan, these rules will be ratified at the end of March. Then, back to Thursday (15/4/2010) ini. until that happens, according to Fuad, because there are some changes in the draft rule is still communicated with the players in the industry.

"So in this new KPD rules do not let the little things so much trouble," said Fuad.

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Weekends, JCI fact eroded by Asian markets

YOGYAKARTA REPORTING - Combination of stock price index (CSPI) weekend experiencing weakness in Asian stocks that occur create (CSPI) trailed, although the observed global market improves. entirely internal to the sector moves increasingly weakened.

At the end securities trading "shares" on Friday 16 April 2010, "JCI" weakened 21.86 points, or about 0.75 percent to 2878.67 level. JII fell 2.13 points to 464.79, LQ45 Index fell 5.05 points seemed to 557.41.

A total of 131 stocks fell from the value of the transaction which was recorded at Rp3, 32 trillion, with a volume of 4.35 billion shares. 70 shares and 74 shares did not move higher.

In the Asian region, the index fell as much as 171.61 points Nikei or 1.32 percent to 11102.18, the Straits Times index fell 9.75 points, or 0.32 percent to 3007.19. and the index on the "Hang Seng" down 292.56 points, or 1.32 percent to 21865.26,

All shares in various sectors was observed to have weakened, which leads to the weakening of commodity sectors around for 22 points, while the mining sector fell as much as 4.75 points. Pda only property sector that observed by about 0.4 points higher. (martinhaeszone)

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