I know there's no real source for this but I thought it was interesting...
http://www.stevequayle.com/News.alert/04_Money/041022.no.USD.supp2.html
U$D Selloff Continues in Eastern Bloc
Oct. 22, 2004
Many of you don't know I am a hedge fund trader specializing in currencies. I talk to people from around the world every day.
This came my way the other day from a contact in the biz and I thought you might be interested in it. The last time there was this much urgency to dump the U$D in that area of the world was a few months prior to 9-11.
This could mean something and it could mean nothing....but we take notice in my line of work.
Name Withheld
message:
Hey Name Withheld,
I just got another email from the guy I told you about before in Cz Repub. who owns 3 money changing houses and is an FX Spot trader as well . This is his broken email to me summarizing, the USD is flat out being dumped, still. It isn't making headlines for some "reason". He, as you may remember I told you, has a strong tie to a large bank in Cz...banker said they are flooded with USD from people changing their accounts over to another currency...EUR, Cz money etc...anything to get out of USD. The Chinese he says there are dumping all their USD. We're not talking FX specs, we're talking mom and pop dumping what they thought a month ago was a solid hedge…the USD.
The person has sent me two other emails in two weeks saying the same thing..one of which you got already, evidently it is an ongoing thing to sell off USD. I didn't know the Chinese are heavy into Cz but evidently they are and dumping USD too. He says yards (Billions). After all, he's the one changing it!
Take it for what it's worth but be real quick with that close button on your Euro shorts should the house of cards implode faster than we thought. It's already jumped the gun 2-3 weeks in my book. Here is the letter from Prague contact: Dear XXXXX! Thanks for ur advice..I'm too flat now just waiting. but if we don't go back to 1.2450 (Eur-Usd) in the next 48 h, that meaning my friend the crash is sooner then later...it seems something from the G7 to take the usd down. I wana to be honest with u I dont like the rush from big Chinese fish here they are selling the usd at this level and buying any thing CZK..PLN..SFR...EUR..everything. they start from the morning ..and I‚m talking with a huge number as real money..they are changing their USD accounts and ..XXXXX Im talking about yards (Billions) my friend here in the CZ say the Chinese have a large biz..operation..our CB(Central Bank) today cant to hold the crash. it was the first time when the usd in czk at 24,95. Good luck my friend thank you once again luck see u soon....
End
Now the panic on the Chech guy is this....he sees Chinese dumping billions of U$D a day through HIM, not caring about the rate. He has no option but to facilitate the transactions. So he is now LONG a huge amount of U$D in a market that has his Chinese customers freaked out so much they are totally ditching the U$D for anything else they can get liquidity for. This guy now has to go into the Interbank market and try to get rid of this huge U$D position, but needs to ditch it ASAP to avoid taking a huge loss on it. But there aren't many buyers looking to stock up on the U$D lately, so it starts to fall.
What can happen is if he and others stop buying the U$D due to the risk, it starts to fall and the Central Banks have to step in. last fall there was a brutal U$D sell-off that lasted from Sept to Jan. The Bank Of Japan spent an incredible amount of U$D (Trillions) trying to slow the fall. We made a huge amount of $$$ off it too. The "fundamentals" don't say it should happen again this fall but it is looking that it might anyway due to the above activities perhaps.
In the FPT this could be a precursor to some kind of attack against American interests.
Name withheld
For anyone who doesn't like Quayle (and I know there's a few of you), here's another source...
http://www.timebomb2000.com/vb/showthread.php?t=124267
[ECON/BIG FREAKING DOT] Russian Central Bank Stops Supporting Dollar
Hold on to your hats boys and girls, it gets interesting from here.
Central Bank Stops Supporting Dollar
Oct. 22, 2004
News From Russia
The weighted average dollar exchange rate was 29 RUR/USD in the first 90 minutes of trade at a special session today. Thus, the official dollar rate for October 23-25 will decrease by RUR0.12. This is the most considerable one-day drop of the dollar against the ruble since late April. The low on the deals was even 28.95 RUR/USD at the UTS.
According to commercial bank dealers, the Central Bank has not supported the dollar despite a large selling of dollars by market participants.
Banks sold over $436m at a special session at 11:30 a.m. Moscow time. Yesterday, the trade volume was just $19m at the UTS at the same time. The average lot of dollars to be sold was $1.7m in the first 90 minutes of trading.
A Bank of Moscow expert told RBC TV that the trade volume on MICEX including a special session for today deals almost reached $1bn in the first 30 minutes of trading. The expert said that the Central Bank's activities could be attributed to the dollar's decrease on international exchanges and growth in the gold and currency reserves in Russia. However, the Central Bank's leaving the market at the end of the week was quite unexpected. The specialist thinks that the Central Bank is currently concerned about its obligations on preventing inflation.
http://www.worldnetdaily.com/news/a...RTICLE_ID=41029