Chinese banks struggle to hedge bloated dollar holdings

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Chinese Banks Facing Losses on Dollar Assets as Yuan Rises

From Xinhua News Agency
via People's Daily Online, Beijing
Wednesday, August 23, 2006

http://english.people.com.cn/200608/23/eng20060823_296115.html

Major Chinese banks, with an estimated $80 billion in foreign currency assets, will face losses if the yuan keeps rising in value, bank executives said Wednesday.

Banks holding U.S. dollars would "definitely suffer losses as the renminbi, or the yuan, continues to appreciate," Pang Xiusheng, the China Construction Bank's chief finance officer, told Xinhua.

Barrick stung by GATA's criticism of hedge book amid bid for NovaGold

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8:55a ET Tuesday, August 22, 2006

Dear Friend of GATA and Gold:

Barrick Gold has accused GATA of trying to mislead the investment world about the mining company's attempt to acquire NovaGold Resources Inc.

Barrick's charge comes in an interview given to MineWeb's Dorothy Kosich by the company's senior vice president for corporate communications, Vince Borg, who seems to be claiming that the company's hedge book really isn't so bad.

Euro nears high of year against dollar

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From Agence France-Presse
Monday, August 21, 2006

http://news.yahoo.com/s/afp/20060821/bs_afp/forexus

The euro neared its highest point of the year against the dollar on expectations of rising interest rates in Europe's common currency zone, dealers said.

While the European Central Bank is forecast to keep raising rates, data in the United States and Japan indicate that borrowing costs there are likely to stay steady, analysts believe.

Ted Butler: First nickel, then silver?

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10:18p ET Monday, August 21, 2006

Dear Friend of GATA and Gold:

Silver market analyst Ted Butler examines the de-facto default of the London Metals Exchange's nickel contract and warns that the same disgrace looms for the New York Commodities Exchange and its silver contract. Butler's commentary is titled "First Nickel, Then Silver?," and can be found at GoldSeek's companion site, SilverSeek, here:

Russian bank thinks it gains prestige by selling 2% to MorganChase

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It may be the camel's nose under the tent, except that the camel smells better.

* * *

JPMorgan Buys 2% of Bank of Moscow

From Reuters
Monday, August 21, 2006

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reut...

MOSCOW -- JPMorgan said on Monday it had bought a 2 percent stake in Bank of Moscow, Russia's fourth-largest bank by assets, in an investment it had flagged in June.

India to slash duties on scrap and raw gold imports

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By Sangita Shah
Financial Express, Mumbai
Friday, August 18, 2006

http://www.financialexpress.com/fe_full_story.php?content_id=137730

The government is soon likely to relax scrap and raw gold import norms, paving the way for greater and cheaper imports of the precious metal into the world's largest gold- consuming country.

Sources close to the Reserve Bank of India stated that the concerns regarding raw gold, which will be imported by classifying it under brass imports, have been resolved. "The government is likely to announce reduction in import duty on raw gold to bring it on par with pure gold," the industry veteran added.

Sprott raises stake in NovaGold; Barrick confident of keeping Donlin Creek

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12:19a ET Friday, August 18, 2006

Dear Friend of GATA and Gold:

Sprott Asset Management Inc. of Toronto reported to the U.S. Securities and Exchange Commission this week that it has acquired another 421,800 shares of NovaGold, worth about $7 million, and raised its percentage of ownership of the company from 4.65 percent to more than 5 percent:

http://www.sec.gov/Archives/edgar/data/1173420/000127700606000040/000127...

Nickel soars, prompting metal exchange to impose trading limits

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By Matthew Craze
Bloomberg News Service
Wednesday, August 16, 2006

http://www.bloomberg.com/apps/news?pid=20601087&sid=asYC7.TrNQd8&refer=h...

LONDON -- Nickel prices climbed to the highest since at least 1987 as stockpiles dwindled, forcing the London Metal Exchange to impose trading restrictions for the first time in a year.

After nickel surpassed $29,000 a metric ton, twice its level at the start of this year, the LME ordered for delivery rules to be suspended because of shortage of the metal. Inventories have plunged 83 percent in the past year.

Join GATA at the New Orleans Investment Conference in November

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6:20p ET Tuesday, August 15, 2006

Dear Friend of GATA and Gold:

....Do you know what it means
....To miss New Orleans?

Louis Armstrong did, and GATA sure does too. Many of the contacts and friendships that got our organization going were made at the New Orleans Investment Conference, which generously (and courageously) gave us a part to play back when government intervention against the gold market was not as believed and understood as it is now.

Join GATA at the New Orleans Investment Conference in November

Section:

6:20p ET Tuesday, August 15, 2006

Dear Friend of GATA and Gold:

....Do you know what it means
....To miss New Orleans?

Louis Armstrong did, and GATA sure does too. Many of the contacts and friendships that got our organization going were made at the New Orleans Investment Conference, which generously (and courageously) gave us a part to play back when government intervention against the gold market was not as believed and understood as it is now.