Jul 11, 2003 06:52
21 yrs ago
2 viewers *
English term
Johanna Holmberg (X)
cut the trading range
English
Bus/Financial
What is meant by "cut the trading range" in the following sentence?
"By contrast, Hungary fell 2.8%, slipping back in June when the central bank unexpectedly raised interest rates and cut the Forint’s trading range against the euro, causing some confusion among investors."
I´m not sure whether they mean that the trading range was lowered or that it was narrowed.
"By contrast, Hungary fell 2.8%, slipping back in June when the central bank unexpectedly raised interest rates and cut the Forint’s trading range against the euro, causing some confusion among investors."
I´m not sure whether they mean that the trading range was lowered or that it was narrowed.
Responses
6 mins
Ralf Lemster
Germany
Germany
Germany
The language of financial markets
Native in: German
Works in: English to German, German, German to English, and 1 more.
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377
Selected
die Bandbreite senken
I would normally have interpreted this as a narrowing, but in this case I believe it refers to a lowering of the currency bands. Please check if this relates to events in June, when the Hungarian central bank raised its base interest rate by 2 percentage points, to 9.5%, and lowered the mid-point of the forint's trading range against the euro by 2.6 percent.
4 KudoZ points awarded for this answer.
Comment: "Thanks very much for your help!"
27 mins
Ildiko Santana
United States
United States
Native in English
&
English
United States
Accurate / Fast / Cheap -- Pick Two
Native in: Hungarian 
, English
Works in: Hungarian to English, English to Hungarian, English, and 1 more.
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162
the Forint weakened
Trading or Exchange rate (*kereskedelmi árfolyam* in Hungarian) - percentage rate of selling a certain currency in comparison to another. I'm not sure if I see the difference between ranges 'lowered or narrowed'... ;) (Strictly speaking, a range can only be narrowed, IMHO..)
11 hrs
Eva Blanar
Hungary
Hungary
Hungary
Nil satis nisi optimum
Native in: Hungarian
Works in: English to Hungarian, French to Hungarian, German to Hungarian, and 2 more.
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:
14
there was no cut/ no change in the invention band
The source text shows some ignorance about what has actually happened.
What happened was that on June 4, the National Bank of Hungary shifted the official middle of the band by 2.3%, from HUF 276.1 to HUF 282.36 per euro, compared to which the national currency can fluctuate in a +-15 % band, without an obligation of the central bank to intervene. The forint may further fluctuate within the range of HUF 240.01-324.71 per euro, it is only that the “floor” exchange rate cannot drop to 240 or below – this is where the NBH has an obligation to intervene. (The floor is important because the national currency tends to appreciate and ever since May 2001 - when the HUF was fixed to the euro, it was typically at 10-12% on the strong side.)
The rate hike also took place in two steps: first 100 bp and then, another hike on June 18, to 9.5%. The reason for the 200 bp increase was exactly that the HUF started to weaken too fast and the interest rate measure was meant to prevent an outflow of foreign funds invested into government securities.
Now I don't know what you can make out of this and in what language, at any rate, the intervention band was not narrowed, it was only "moved", by about HUF 6 per euro.
HTH,
Eva
What happened was that on June 4, the National Bank of Hungary shifted the official middle of the band by 2.3%, from HUF 276.1 to HUF 282.36 per euro, compared to which the national currency can fluctuate in a +-15 % band, without an obligation of the central bank to intervene. The forint may further fluctuate within the range of HUF 240.01-324.71 per euro, it is only that the “floor” exchange rate cannot drop to 240 or below – this is where the NBH has an obligation to intervene. (The floor is important because the national currency tends to appreciate and ever since May 2001 - when the HUF was fixed to the euro, it was typically at 10-12% on the strong side.)
The rate hike also took place in two steps: first 100 bp and then, another hike on June 18, to 9.5%. The reason for the 200 bp increase was exactly that the HUF started to weaken too fast and the interest rate measure was meant to prevent an outflow of foreign funds invested into government securities.
Now I don't know what you can make out of this and in what language, at any rate, the intervention band was not narrowed, it was only "moved", by about HUF 6 per euro.
HTH,
Eva
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