| Beware credit card rip off
Credit cardholders are being warned to beware of sharp practice on the part of some foreign retailers who charge high commissions and poor exchange rates to unsuspecting customers while shopping abroad. Credit card companies report an upsurge in complaints about the use of ‘dynmaic currency conversion,' whereby a credit cardholder finds that transactions carried out abroad have been converted into their home currency without their consent at the point of purchase, rather being charged in the local currency. This results in two foreign exchange conversions, often involving high commissions and poor exchange rates, which the cardholder is unaware of until they receive their credit card statement some time later. This is how it works. Say you purchase a handbag in Italy for €100.
Venezuela May Enact New Dollar Limits, Sanguino Says (Update2)
Jan. 24 (Bloomberg) -- Venezuelan lawmakers may further restrict currency trading by banks outside official government channels in a bid to curb a surge in inflation, the National Assembly's financial committee chairman said. Officials will seek to limit the impact on consumer prices of the parallel exchange rate, where the dollar is almost 100 percent more expensive than the official rate of 2,150 bolivars per dollar, said Committee Chairman Ricardo Sanguino. Sanguino said swapping bolivar-and dollar-denominated bonds, which accounts for a portion of the country's unregulated trading and is still legal, may be restricted by the government. The currency dropped for a third straight day in unregulated trading. ``Trading dollar bonds is currently legal, but what's allowed in a given moment may not be allowed in a different circumstance,'' Sanguino, who is heading a congressional probe on illegal trading practices in the currency market, said at a news conference in Caracas.
Flaherty sees greater IMF forex surveillance role
OTTAWA (Reuters) - Canada thinks it is possible for the International Monetary Fund to assume a larger role in policing global exchange rates, Finance Minister Jim Flaherty said on Wednesday. Plans to advance such a role have slowed recently, according to European officials, because of a lack of interest in the issue from the United States. Asked on Wednesday whether he still believed that it was possible for the IMF to be given stronger surveillance powers over foreign exchange, Flaherty said: "Yes I think it's possible ... and it will be a subject of some of our discussions on Saturday in Essen, Germany. "I think there's a clear consensus that this is an issue that needs to be addressed globally and that it's a primary subject of discussion for the G7 participants," Flaherty told reporters.
Greenback Falls To Loonie, Strong Against Rest Of Majors; Early Friday
(RTTNews) - Greenback staged sharp surges against most other majors early Friday in New York. This came along with yen's reactions ahead of the G7 meeting in Germany. The meeting which is scheduled for Friday and Saturday is expected to discuss the matter of yen, as European majors raised concern over weakening yen destroying the region's export sector. Various European fundamentals including German wholesale prize index for January came out early Friday are less likely influenced trading in the pair during the session. No economic data is expected from the US economy during the coming hours. The Canadian employment data for January came out at 7:00 am, weakened the US currency heavily. USDJPY trended slightly higher early Friday and pair collected 121.51 at 2:30 am ET.
UPDATE: Yen Battles Yuan For G7 Spotlight
NEW YORK (Dow Jones) -- The Chinese yuan now has a bit more competition in the contest for the most undervalued currency. The weakness in the Japanese yen is dominating the market's attention as financial leaders from the Group of Seven leading industrial nations prepare to meet in Essen, Germany, this weekend. European officials, worried about the impact of a rising euro on the eurozone's economy, have complained that a weak yen gives Japan an unfair trading edge. But will anybody listen to their complaints? The yen slumped to a four-year low against the dollar, an all-time low against the euro, a 14-year low against the British pound, and nine-year lows against the Australian dollar, New Zealand dollar and the Swiss franc earlier this year. Japan's currency has been especially weak versus the euro in recent years, losing about 50% of its value since the end of 2000.
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