Google+ Followers

Saturday, 23 October 2010

Saudi monetary policy outperforms key economies

Saudi Arabia is adopting a monetary policy that is more stable than that of advanced economies given its massive local currency reserves, the Gulf Kingdom's largest bank has said.

National Commercial Bank (NCB) said a surge in foreign assets because of strong oil prices has turned Saudi Arabia into a major net creditor with the world's highest foreign reserves after China and Japan.

'It is no wonder these days that monetary policy in Saudi Arabia is exhibiting a high degree of stability and predictability compared to advanced economies that are still deliberating over another round of quantitative easing in a fiscally tight environment,' NCB said in a study sent to Emirates 24|7."

gulfnews : Minister justifies Emaar MGF deal

An Indian minister defended the Delhi Development Authority's (DDA) so-called "bailout" to developer Emaar MGF in connection with construction of the Commonwealth Games Village.

Urban Development Minister Jaipal Reddy said the DDA bought 333 apartments from Emaar MGF for Rs7.6 billion (Dh626.54 million) so that the developer would have enough cash to complete the Village. He said he was not consulted on the deal but supported it.

While investigating agencies are zeroing in on all aspects of the Village's construction, including possible financial anomalies and construction defects that caused a huge embarrassment to the country before the Games got under way, Reddy's statement has caused ripples in political circles and is being termed as a "shrinking of the probe".

THE HOUSING DOUBLE DIP IS HERE | PRAGMATIC CAPITALISM


This could have enormous macro impacts if this becomes a protracted decline (via Clear Capital):
Clear Capital’s latest data through October 22 shows even more pronounced price declines than our most recent HDI market report released two weeks ago. At the national level, home prices are clearly experiencing a dramatic drop from the tax credit-induced highs, effectively wiping out all of the gains obtained during the flurry of activity just preceding the tax credit expiration.
This special Clear Capital Home Data Index (HDI) alert shows that national home prices have declined 5.9% in just two months and are now at the same level as in mid April 2010, two weeks prior to the expiration of the recent federal homebuyer tax credit. This significant drop in prices, in advance of the typical winter housing market slowdowns, paints an ominous picture that will likely show up in other home data indices in the coming months.