Bitcoin is Not like Gold
Bitcoin has a uniqueness problem – Bitcoin has lots and lots of unique features and advantages that you can read about. However, I find one particular risk that you can drive a truck through. Compared to US Dollar (or Euro, Pound, any national currency) which by definition can have only one of each – and therefore […]
Hedge Accounting and Beyond: Currency Volatility and Movements Aren’t Just Treasury’s Problem
It seems that commodity price escalation — and recent retrenchment, in certain markets — has gotten the better of the global sourcing volatility discussion of late than currency fluctuations. Yet currency volatility and price mo…
Thinking Through the Procurement Implications of a Rising RMB
In the past couple of weeks, there’s been an abrupt turn of events around the RMB, (from US pressure, and Chinese push-back) to a state where China appears ready to let the RMB rise. A recent Financial Times article shares some of the global currency and monetary implications that an appreciating RMB may bring. But […]
Will the US Punt on China Currency Manipulation?
The US faces a number of foreign policy concerns at present, including several that could develop into significant crisis situations (think Bay of Pigs, for those who are versed in 20th century diplomatic/military history). One is the situation in Iran, which thus far, President Obama has chosen to largely ignore, pursuing a light wrist-tapping diplomatic […]
What is a Fair Value for the RMB — and What Does it Mean for China Sourcing?
Supply Chain Digest recently ran a feature highlighting
an academic paper that suggests China should let the RMB appreciate
10% relative to the dollar. The story suggests that “if such a move
were to happen, it would effectively increase the…
Currency Devaluation: First Venezuela; Next, China?
Venezuela, the most recent former democracy to fall into the hands of
a truly kooky dictator with nationalist ambitions, recently devalued the bolivar in an attempt to shore up its challenged currency. A recent Reuters wire story captured the esse…
