...New peso bills win international award By Lawrence Agcaoili (The Philippine Star) Updated October 24, 2011 12:00 AM MANILA, Philippines - An international organization composed of central banks, currency-issuing authorities, currency producers and suppliers has recognized the new peso bills launched by the Bangko Sentral ng Pilipinas (BSP) last December. The BSP said in a statement that the International Association of Currency Affairs (IACA) has recognized the new peso notes - dubbed as the New Currency Generation (NGC) series - as one of the two finalists for best set of new currencies in the world. The winner of the Best Currency Award was the new series of shilling notes from Uganda while the other finalist was the new series of rupee from Sri Lanka. However, the new Philippine bank notes was given a special award for best security features. The citation was given to the NGC’s optically variable device (OVD) patch feature present in the new P500 and P1,000 bills. The BSP said the security feature consisting of the reflective foil that bears the image of the BSP logo with a parrot in the P500 bill and the South Sea pearl inside the clam in the P1,000 bill would make it difficult for counterfeiters to imitate. BSP Monetary Board member Armando Suratos and BSP Deputy Governor Juan de Zuñiga received the awards during the ceremony held in Singapore last Oct. 5. Immediately after its launching in Malacanang last December, the NGC series elicited criticism due to flaws...
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... | |Bibliografía: | |http://www.cnnexpansion.com/economia/2015/10/18/presupuesto-ley-ingresos-miscelanea-fiscal-2016 | La Comisión de Hacienda y Crédito Público de la Cámara de Diputados aprobó el domingo en lo general el dictamen de la Ley de Ingresos de la Federación para el Ejercicio Fiscal 2016. El documento incluye una propuesta para elevar hasta 16.40 pesos por dólar la expectativa de tipo de cambio promedio en el proyecto de presupuesto del país en 2016. La expectativa contemplada en el proyecto original de presupuesto enviado a principios de septiembre por el Gobierno del presidente Enrique Peña Nieto al Congreso era de 15.90 pesos por dólar estadounidense. La paridad del peso mexicano ante el dólar cerró el viernes en 16.3725/16.3785 pesos, según el precio final del Banco de México. El proyecto estima un crecimiento de entre 2.6 y 3.6% para el Producto Interno Bruto (PIB) de la segunda mayor economía de Latinoamérica el año próximo, por encima del rango de entre 2.0 y 2.8% para 2015, con un déficit fiscal de 0.5%. Los detalles Con 39 votos a...
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...АДМИНИСТРИРОВАНИЯ Groupe Ariel S.A. Case Artyom Kirillov Polina Dzyuba Moscow 2011 Groupe Ariel S.A. : Parity Conditions and Cross-Border Valuation Question 1 There are two ways to compute the projects NPV. The first approach is to calculate it in Mexican Pesos and then change the resulting figure into Euros at the spot rate of MXN15.99/EUR. Note that the discount rate that we have used was the yield on the long-term peso-denominated corporate bonds. Below is the screenshot showing how we have done this. Computing NPV in Mexican Pesos (resulting NPV in Euros is 138,902) Question 2 The second approach is to transfer each cash flow from Mexican Pesos into Euros using the future rates (e.g. in year 5 we use the rate for this particular year rather than the spot rate). Note that the discount rate that we have used was the yield on the French 10-year government bonds. Once again, below you will find a screenshot. Computing NPV in Euros (resulting NPV in Euros is 144,633) In case the required rate of return on the project is higher than that on the 10-year government bonds (for instance, 8%), the resulting NPV will be lower than the...
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...At the end of 1994 Mexico was hit by one of the worst economic crisis in its history, which is called "The Peso crisis" or "Tequila Crisis" and is considered one of the first ones that had global effects. After only three weeks in charge, the newly elected President Ernesto Zedillo Ponce de León was forced to lift the upper band of the exchange rate by 15%, devaluating de facto the Mexican currency. In fact, the Central Bank of Mexico had insufficient international reserves to keep the fixed exchange rate with the US dollar. This triggered panic among Mexicans, who started buying dollars because they were fearing that further and more serious devaluations would occur. This contributed to exacerbate the situation even more. The crisis was very harsh, but thanks to a US$50b rescue package from USA, the IMF, the Bank for International Settlements and private commercial banks, Mexico was able to roll over its short term dollar denominated debt and did not default on its short term securities. As it results from the following data, Mexico managed to recover very quickly: * The GDP decreased by 5.8% in 1995, but in 1996 and in 1997 it grew by 5.9% and 7.0% respectively * Household final consumption expenditure contracted by 11.5% in 1995, but in 1997 it went back again to 1994 level * Foreign direct investments decreased by 13% in 1995 and by 4% in 1996, but they grew by 40% in 1997 to a level 16% higher than in 1994 * Unemployment rate grew by almost 3 percentage...
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...John Grady Cole and Lacy Rawlins. McCarthy gives readers an example of Mexico’s economic status when he writes, “How much they pay you? We was getting two hundred pesos a month. In Texas what do they pay for this work. I dont know. Hundred a month. Hundred dollars. Yessir. Eight hundred Pesos. Yessir. I reckon” (McCarthy 164). By writing about how much one would be paid for working on a ranch in Mexico compared to working on a ranch in America, McCarthy shows his readers the difference in the wealth of the two nations. An article from Time Magazine also gives readers an idea of what the Mexican economy is like by saying that, “The average Mexican worker makes 1 peso and 25 centavos an hour. At that rate, he has to work ten hours to buy lunch fro a family of five, 72 hours to pay an average rent in the center of the city, and 160 hours to buy a suit of clothes” (Time). Despite the close proximity of the United States and Mexico, the United States is the wealthier of the two nations due to the value of the Peso compared to the value of the dollar, the corrupt status of the Mexican justice system and government, and Mexico’s lack of natural resources. The value of the Mexican peso is significantly less than the American dollar. According to Jose Alvarez-Ramirez, the value of approximately fourteen Mexican pesos is equivalent to the value of one American dollar. In All the Pretty...
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...• Farmington (Antilles) N.V. – This facility is an offshore “shell corporation” by which the U.S. parent exports U.S.-manufactured products to Mexico and other countries. When dealing with key customers, the exporters do accept pesos, but exports are regularly billed in USD. As a result, they have receivables in both USD and Mexican pesos, which can be seen as both an opportunity and a threat in relation to the devaluation of the peso. • Farmington de Mexico – This facility is a 100% Mexican-owned subsidiary that focuses on locally manufactured products to domestic companies. Seeing as the company’s market share is substantial, their primary practice is to transfer a large percentage of its profits to the parent’s U.S. bank accounts. Sales transactions are made with Mexican pesos, which are then exchanged for USD, before being transferred to U.S. bank accounts. • Exportaciones (Farmington) S.A. – This facility is located in Veracruz, a port city on Mexico’s east cost, and manufactures products for export to Latin America. Built at the same times as the Farmington de Mexico facility, payables are in USD, and much like the other facility, Exportaciones repays a large percentage of its earnings to U.S. bank accounts. The devaluation of the peso should lead to a positive effect on the company’s...
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...subsidiary to purchase and install a new cost-saving machinery at a manufacturing facility in Monterrey. This new equipment will allow automating recycling and remanufacturing of toner and printer cartridges, and would have a useful life of 10 years. To analyze the investment proposal, Group Ariel needs to conduct a DCF analysis and run an estimate for the Net Present Value (NPV) for capital expenditures. However, the company needs to keep in mind the exchange rate between Mexican Pesos and Euros, as well as the inflation rates over time and the risks involved with this type of investment. Indeed, a major challenge for the analysis will be deciding which currency to use between the Euro and the peso. Scenario #1: Mexican Inflation = 7% Given the fact that the expected future inflation is 7% for Mexico and 3% for France. The discount rate used for the Peso NPV can be calculated using the equation for the International Fisher Effect: WACC-Mexico = 12.19% · Method A: NPV in pesos and then in Euros. The NPV in Pesos = 1,478,505[1] and using this NPV, we can translate it into Euros using the current MXN15.99/EUR exchange rate. The NPV in Euros is €92,464. [1] See Exhibit 1. · Method B: NPV in Euros. Assume that PPP and Fisher Equation holds, then we can get the future spot rate of exchange for each year and conclude the NPV in Euros at €92,464[2] · Conclusion: The NPV of this equipment investment would be same whether we use Method A or Method B as long as IRP and PPP hold...
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...Documents Required Upon Entry Upon entry into Cuba, it is recommended that visitors have a return air ticket and evidence of sufficient funds for the duration of their stay. Travellers arriving with "air only" tickets must show that they have sufficient funds to meet their minimum financial needs (equivalent to CUC 50 per day for the duration of the stay). Airport Tax There is a mandatory airport tax of CUC 25 payable only in Cuban convertible pesos. =========================================== When reporting a crime to local police, you should insist on receiving the Comprobante de Denuncia as confirmation that a report has been made. Police officers may speak only Spanish. Passports and Visas A valid Canadian passport is required for Canadians intending to visit Cuba. The passport must be valid for at least one month beyond the date of your expected departure from Cuba. Canadians must also carry a tourist card (or visa), or a business or student visa. The tourist card is generally provided by tour operators or airlines, or can be obtained from a Cuban government office in Canada in the case of privately organized flights. It can also be purchased at certain airports in Canada. Health Insurance Since May 1, 2010, travellers must present proof of health insurance in order to enter the country. Upon arrival, travellers may be required to present an insurance policy, insurance certificate, or medical assistance card valid for the period of their stay in...
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...25-YEAR TRACK OF MEXICO’S INFLATION Reference: ("inflation.eu worldwide inflation," 2012) This line graph represents Consumer Price Index (CPI) inflation for the last twenty-five years in Mexico. The graph spans from 1987 to 2011. The data recorded is the inflation percentage for the year. The high for the last twenty-five years was 159.17% in 1987. The low for the last twenty-five years was 3.33% in 2005. There are two spikes of inflation. These occurred in 1987 and 1995 and were sparked by economic irresponsibility. The first spike in inflation, which occurred in 1987, was a result of poor fiscal policy implemented by President Echeverria and President Lopez Portillo. Their presidential terms ran from 1970 to 1982. During their tenure they implemented expansionist policies that exceeded the limitations of Mexico’s economy. ("Encyclopedia of nations," 2012) The results of these policies resulted in corrupt and inefficient government and large external debt. In 1982 President Madrid’s solution to this fiscal irresponsibility was the implementation of higher taxes and higher interest rates. These policies did nothing to decrease inflation. It wasn’t until 1985 when the decisions to promote Mexican imports and liberalize trade that inflation would decrease. The last year of extraordinary inflation percentages was 1987. The policies of President Madrid would result in lower inflation percentages until 1995. President Salinas would use these same policies as well as the...
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...EXTENSIÓN DE TRICEPS 2 SERIES 8 A 10 REPS. CURL DE BICEPS 2 SERIES 8 A 10 REPS. EJERCICIO SERIES REPETICIONES PESO MUERTO 3 SERIES 6 A 8 REPS. PRENSA PIERNA 3 SERIES 10 A 12 REPS. ESTOCADAS (TIJERAS) 3 SERIES 8 A 10 REPS. GEMELOS 3 SERIES 6 A 8 REPS. ABDOMINALES 4 SERIES 8 A 15 REPS. CUERPO INFERIOR A: 1 | www.youtube.com/expresionazul Rutina creada por GERO de imparableTV CUERPO SUPERIOR B: EJERCICIO SERIES REPETICIONES DOMINADAS 3 SERIES 6 A 8 REPS. PRESS MILITAR 3 SERIES 6 A 8 REPS. REMOS SENTADO EN CABLE 3 SERIES 8 A 10 REPS. PRESS DE BANCA CON MANCUERNAS 3 SERIES 8 A 10 REPS. FONDOS 2 SERIES 10 A 12 REPS. CURL BICEPS C/BARRA 2 SERIES 10 A 12 REPS. PRESS FRANCES C/MANCUERNAS 2 SERIES 10 A 12 REPS. EJERCICIO SERIES REPETICIONES SENTADILLAS 3 SERIES 6 A 8 REPS. PRENSA PIERNA 3 SERIES 8 A 10 REPS. ESTOCADAS (TIJERAS) 3 SERIES 10 A 12 REPS. GEMELOS 3 SERIES 10 A 12 REPS. ABDOMINALES 4 SERIES 8 A 15 REPS. CUERPO INFERIOR B: NOTAS: (Inferidas del video de Gero) - Realizar un calentamiento adecuado es la regla de oro ante toda rutina. Si buscas definición con este plan de entrenamiento realiza menos series pero la misma intensidad/peso para no perder musculatura. Los descansos son en promedio de 2-3 minutos por...
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...Gerald Y. Cruz 2003-30983 BA Political Science Econ 141 Prof. Mesina 23 March 2011 Sweet Deals: The Philippine Sugar Industry History From the 19th century until 1970s, sugar has been one of the most important agricultural products in the Philippines. Philippines have been one of top exporter of sugar in the world and the sugar has been one of the pillar of the agricultural Philippine Economy. Jose Maria Zabaleta in his paper discusses the Philippines’ comparative advantage in the sugar industry: “Comparative Advantage The middle islands of the Visayas and the northernmost island of Luzon lie in the typhoon belt of the Pacific Ocean, and its eastern seaboard, often visited by as many as twenty hurricanes a year two or three of which are often considered as destructive, is not suitable for maize, many tree crops, and year round agriculture. Sugarcane, however, grows luxuriantly and well, and suffers little from typhoon damage. It is, therefore, a crop of preference not only because its product, sugar, has a long shelf life and is easily transported, but because the farmer is never really in danger of losing his entire harvest because of its resiliency.”(Jose Maria Zabaleta) Sugar started to be commercially produced in the Philippines during the 18th century. Since then the sugar industry flourished to become a major commodity for export. In the 20th century, the greater demand for sugar in the American Market resulted into growth of the industry...
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...your analysts told you that the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. What actions, if any, should you take? At least 250 Words. Answer- Since the subsidiary has been located in Mexico, and once manufactured those component parts are get delivered to the U.S therefore the cost of production in Mexico should be less than that in U.S. However, the subsidiary in Mexico is financed by the bank borrowings in the U.S. Hence, it is important that the value of the U.S Dollars should be less with respect to the Mexican Peso. Since, Mexican Peso is expected to depreciate by 30 per cent against the U.S Dollars on the foreign exchange markets over the next year, therefore the value of Mexican Peso is expected to fall. Hence, the exports of Mexican products would rise. The firm should decrease its production activities in Mexico for the time being. It should decrease its investment in the subsidiary in terms of U.S dollars so that the demand for Dollars will fall which has become expensive in terms of Mexican Peso. In fact, the company should increase its manufacturing activities in U.S so that it would reduce the cost of production because of domestic production of the component parts. The firm should also go for rise in finance from Mexican banks so that it can become easy for the company to finance the wholly owned subsidiary. Investment in terms of Mexican Peso would lower down its cost of production...
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...Mexico. They need to analyze the net present value of the project, keeping in mind the exchange rates between Mexican Pesos and Euros in order to maximize their return. They also need to keep in mind the inflation rates over time and the risks involved with this type of investment. Analysis Number 1. Groupe Ariel is recycling old equipment in Mexico. They will need to use pesos to calculate their cash flows to see how this part of their project will impact their finances. They also need to convert this peso amount into Euros. We began the analysis by computing the Net Present Value (NPV) of Ariel-Mexico’s recycling equipment. This was done by first taking the incremental peso cash flow rate by subtracting the cost of the old manual equipment, from the cost of the new equipment. As is displayed in [exhibit XX] the incremental cash flow is represented as positive numbers because the reduced cost is equal to cash flow. Next the depreciation costs were subtracted from the incremental cost totals. The first three years of depreciation included depreciation from the new equipment and the remaining scheduled depreciation of the old equipment. After tax of 35% was deducted from the cash flow the depreciation was added back to represent the tax shield. The NPV was calculated using the NPV function on Microsoft Excel. The discount rate that was used for the Peso NPV was calculated using the equation for the International Fisher Effect and as can be seen in the answer to Problem...
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...the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. What actions, if any, should you take? Depreciation is a reduction in the value of an asset with the passage of time, due in particular to wear and tear. When the analysts predicted that peso would depreciate by 30 percent, it would mean that all the assets purchased in peso depreciate by 30 percent in their value correspondingly. If the peso depreciates by 30 percent as expected, relatively, the dollar value of the Mexican subsidiary would decrease as well. With the depreciation of peso, the demand for peso would increase and more consumers would start to buy goods in peso because the same amount of money paid to buy a good carries a lesser value. In contrast, the demand for goods in U.S dollar would decrease. This would result in the decreasing value of the company’s Mexican subsidiary in U.S dollars. With the expected depreciation in mind, the company would want to protect the company by collecting the foreign receivables before the depreciation takes place, so that it would not lose its value. Furthermore, by avoiding major peso-denominated costs until after devaluation, would likely cut down costs for the company. In contrast, U.S dollar-denominated purchases should be made before the devaluation and change peso-denominated major accounts into dollars if it is possible. By doing this, it prevents the drop in values of peso...
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...Mexico: The Tequila Crisis 1994-1995 What Caused Mexico’s peso crisis of December 1994? Mexico, the Latin American country that survived the huge debt crisis in the 1980’s found itself amidst one of the most viral economic crises that it had ever encountered in its history. The crisis took place under President Zedillo; however, the causes of the crisis are usually linked to Carlos Salinas de Gortari and his outgoing administration. Gortari’s government currency policy put an unbelievable strain on the nation’s finances. In the early 1990’s, Mexico seemed to have established itself as a reformer and was establishing economic development. Domestic deregulation and privatization combined with liberalization of trade and investment led to rapid growth and massive inflow of direct and foreign investments. By May 1994 Mexico falsely believed that there was prosperity in the nation and that it in fact could be a first world nation. The Banks were just lending credit without conducting proper checks or having any accountability and it was widely known that the currency was overvalued and there was economic mismanagement taking place. The situation was not helped and led to a collapse in confidence by several political shocks that took place like the uprising in the South and the assassination of the leading presidential candidate (Gil-Diaz, the CATO journal vol.17 no 3). The government’s corruption caused the increased account deficit fostered by consumer binding and...
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