Because MONEY!!! Obviously.YaTingPom wrote:How is ditching the USD anti Vietnam?vladimir wrote:I don't understand the economic advantages of this at all, but I suppose the logical question would be...if the dollar is so advantageous, why do most countries have their own currency?
I'm sure national pride plays a part, and this is what the CNRP are doing here, it fits in with the anti-Vietnam rhetoric.
CNRP to end dollar economy within a year
"The final straw actually involved my mortal enemy vladimir, who you may or may not know is an insufferable, overposting asshat."
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Does a rising dollar pull liquidity and growth away from the region? And the huge rising $ denominated debt in the region gets costlier as local currencies weaken. Isn't that how the Asian crisis played out?
http://stockcharts.com/h-sc/ui?s=EEM&p= ... 8959972180
But on the other hand the $ has been the safe haven in any crisis.
http://stockcharts.com/h-sc/ui?s=EEM&p= ... 8959972180
But on the other hand the $ has been the safe haven in any crisis.
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I wish I understood the complexities of currencies and finances within an aconomy and the general flow of it throughout the world. I doubt anyone on this board does either, unless they are economists...but then why would they be in Cambodia!spitthedog wrote:Does a rising dollar pull liquidity and growth away from the region? And the huge rising $ denominated debt in the region gets costlier as local currencies weaken. Isn't that how the Asian crisis played out?
http://stockcharts.com/h-sc/ui?s=EEM&p= ... 8959972180
But on the other hand the $ has been the safe haven in any crisis.
Long term (10 years) they should eventually ditch the USD. It's holding onto a time where Cambodia was "transitioning" and now it's time to move on, just for the physiological effect.
Go KHR!
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I tried to briefly address the advantages and disadvantages above. The major disadvantage to having the dollar is that a country loses the ability to have any sort of independent monetary policy, however the major advantage is the level of stability. Played out here in Cambodia, that means that the costs of exporting goods in Cambodia is increasing globally disproportionately to what would occur under normal market forces, however FDI has been increasing in a large part due to the stability of the dollar economy.vladimir wrote:I don't understand the economic advantages of this at all, but I suppose the logical question would be...if the dollar is so advantageous, why do most countries have their own currency?
I'm sure national pride plays a part, and this is what the CNRP are doing here, it fits in with the anti-Vietnam rhetoric.
Not every country will get massive investment just because they have the dollar. It certainly helps Panama, for instance, and indeed Cambodia with the large Chinese and regional investment. But having a stable currency isn't enough in itself to motivate investment into random countries - look at Greece (which isn't a 'random' country, I just mean that people aren't putting money there because it has the Euro, any more than they may put money in a random country that switched to the dollar). Cambodia has a unique set of circumstances to benefit from it, but it almost certainly also hurts several sectors, such as agriculture and the garment industry. That being said, it does also help to keep the cost of imports steady, which has helped in the past two decades as Cambodia started from a place of needed to import everything for infrastructure development, which is also slowly changing.
I think the word you want is plagiarise.Miguelito wrote:I should just quote Wikipedia next time.logos wrote:That's a lot of words to confirm you don't have a clue
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Nope, I mean "quote" / "copy":YaTingPom wrote:I think the word you want is plagiarise.Miguelito wrote:I should just quote Wikipedia next time.logos wrote:That's a lot of words to confirm you don't have a clue
Permission is granted to copy, distribute and/or modify Wikipedia's text under the terms of the Creative Commons Attribution-ShareAlike 3.0 Unported License and, unless otherwise noted, the GNU Free Documentation License.
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I think it is Joel Brinkleys book that talks about the ministry of finance printing riel and getting loads more printed under the counter to be shared amongst the lads.
Can the leaders to trusted to manage their own economy without weakening it by taking a few extra cases of riel from every printing run for themselves.
Can the leaders to trusted to manage their own economy without weakening it by taking a few extra cases of riel from every printing run for themselves.
Woosh!Miguelito wrote:Nope, I mean "quote" / "copy":YaTingPom wrote:I think the word you want is plagiarise.Miguelito wrote:I should just quote Wikipedia next time.logos wrote:That's a lot of words to confirm you don't have a clue
Permission is granted to copy, distribute and/or modify Wikipedia's text under the terms of the Creative Commons Attribution-ShareAlike 3.0 Unported License and, unless otherwise noted, the GNU Free Documentation License.
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Didn't US, UK Germany and France do the same thing recently?ផោមក្លិនស្អុយ wrote:I think it is Joel Brinkleys book that talks about the ministry of finance printing riel and getting loads more printed under the counter to be shared amongst the lads.
Can the leaders to trusted to manage their own economy without weakening it by taking a few extra cases of riel from every printing run for themselves.
QE I think it's called.
Also, they did give out free money to kickstart the economy and get the locals to use the local currency.
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I haven't heard of that book, would be interested to find it. At this point I certainly don't think they can. I could see how it would be beneficial to them to able to print their own money (the riel), have it more or less pegged to the dollar, and be able to print off some extra bundles for themselves, without making a full switch, so interest rates don't skyrocket.ផោមក្លិនស្អុយ wrote:I think it is Joel Brinkleys book that talks about the ministry of finance printing riel and getting loads more printed under the counter to be shared amongst the lads.
Can the leaders to trusted to manage their own economy without weakening it by taking a few extra cases of riel from every printing run for themselves.
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Quantitative Easing.YaTingPom wrote:Didn't US, UK Germany and France do the same thing recently?ផោមក្លិនស្អុយ wrote:I think it is Joel Brinkleys book that talks about the ministry of finance printing riel and getting loads more printed under the counter to be shared amongst the lads.
Can the leaders to trusted to manage their own economy without weakening it by taking a few extra cases of riel from every printing run for themselves.
QE I think it's called.
Also, they did give out free money to kickstart the economy and get the locals to use the local currency.
"According to the International Monetary Fund, the U.S. Federal Reserve System, and various economists, quantitative easing undertaken since the global financial crisis of 2007–08 has mitigated some of the economic problems since the crisis." (Wikipedia )
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There is a bit of a difference between strategic QE and a suitcase full of cash for me and my mates.YaTingPom wrote:Didn't US, UK Germany and France do the same thing recently?ផោមក្លិនស្អុយ wrote:I think it is Joel Brinkleys book that talks about the ministry of finance printing riel and getting loads more printed under the counter to be shared amongst the lads.
Can the leaders to trusted to manage their own economy without weakening it by taking a few extra cases of riel from every printing run for themselves.
QE I think it's called.
Also, they did give out free money to kickstart the economy and get the locals to use the local currency.
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