It is electronic cash. Not hard currency

Foreign deposit fixed deposits especially for pririority clients get better spreads on the buying and selling

Most of the time dual currency accounts has the best rates as far as i know

crixalis

This post has been edited by cRiXaLis: Jul 26 2011, 09:34 PM

Got two questions

1. How many banks do not apply 2nd tier rates. Afaik only citibank.

2. How many banks has FD with interim interest? and how many of them has interm interest per month basis on a 1 year contract.

crixalis

It is strong now thanks to the trade surplus to china mainly on coal.
Actualy economy is not in a good shape and hence the high interest rate trying to reduce spending.

Nice.

Its best you understand interest rate. Also go and check the banks average deposit to lending ratio in Aus. Its worse than the statistic shows as its being helped by foreign wholesale funding like debt instruments etc and I might add ppl like your goodself.

The pic that was shown by you is actually countries that are least affected by old money politics.

Aus also has almost a unfair trade with a lot of countries. Its either I owe you a lot or you owe me alot. To be fair they suppose to be trading equally.When unfair trade happens a lot of debt instruments will be made with the backing of your country economics.I have forgotten the name of the Swiss bank that handles this, and once met a guy who works there during a wedding. Its really interesting hearing him talk what actually happens behind the scenes.

China spending now has been the most interesting. They have been stocking up a lot of raw materials with the extra trade surplus they have to negate from any future issues. Thats basically using current extra cash to make sure the future holds bright.

So the big question. What has Australia been doing with their extra cash??

Its always a bad thing for a develop country to have high interrst rate. They are trying to encourage savings but with the high inflated living cost, its still not working yet. The reason for this is to increase their deposit to lending ratio.

crixalis

This post has been edited by cRiXaLis: Jul 28 2011, 10:35 AM

1.Their currency strength does not reflect their economy
2.Learn reason for interest rate and it has nothing to do with housing bubble or the economy crisis
3.Stop reassuring yourself that you made a correct fundamental risk assesment when you bought and realize the real trurh on its currency price hike.

crixalis

The us economy on housing bubble was not on interest rate.
It was majorly on leveraging deposits and future paper trading. They went to nonsensical levels. I know you know so good for you but its not that simple as to blame low interest. Keep it simple
Interest is for managing inflation period. Back to Aud, their currency strength does no reflect their economy. This is a biggie on basing on fundamentals

crixalis

This post has been edited by cRiXaLis: Jul 28 2011, 04:23 PM