MM value is getting a little ridiculous
+6
nikko_33
Shnipe
nicholas2000
Revilo X
Eugene Bautista
Negosyo sa tao
10 posters
Page 1 of 1
MM value is getting a little ridiculous
Not ours, just it seems everybody else:
Current MM value: Big 10 Pop Size (Therefore, the biggest economies)
So the question is: Do we lower our PHP to the 0.005 level to be competitive?
Current MM value: Big 10 Pop Size (Therefore, the biggest economies)
Country | MM Value (per currency) |
Serbia | 0.01g |
USA | 0.009 g |
Brazil | 0.008g |
Poland | 0.011 g |
Rep. of Macedonia | 0.009 g |
Bulgaria | 0.009 g |
Hungary | 0.009 g |
Turkey | 0.008 g |
Indonesia | 0.008 g |
Spain | 0.008 g |
So the question is: Do we lower our PHP to the 0.005 level to be competitive?
Negosyo sa tao- Number of posts : 369
eRep Function : Ministry of Finance Minister, and MM Trader
Reputation : 1
Registration date : 2009-03-27
Re: MM value is getting a little ridiculous
if we put it to 0.005 we can't gain profit with it. 0.008 is much better i suppose
Eugene Bautista- Number of posts : 114
eLocation : Luzon, Philippines
eRep Function : Congressman
Reputation : 1
Registration date : 2009-04-02
Re: MM value is getting a little ridiculous
I think no...
0.005 is the cost of printing PHP.
When you say competitive, does it mean exporting our product?
I think for now, we can stay @0.007 - 0.008 and see what will be the MM movement for the next few days.
If we offer PHP at 0.005, the gov. will not gain from MM.
0.005 is the cost of printing PHP.
When you say competitive, does it mean exporting our product?
I think for now, we can stay @0.007 - 0.008 and see what will be the MM movement for the next few days.
If we offer PHP at 0.005, the gov. will not gain from MM.
Revilo X- Number of posts : 1279
eLocation : Palawan
eRep Function : ePhilippines
Reputation : 8
Registration date : 2009-06-03
Re: MM value is getting a little ridiculous
I think we should try to keep it right where it is.
nicholas2000- Number of posts : 15
Reputation : 0
Registration date : 2010-04-08
Re: MM value is getting a little ridiculous
With the way things work now, it doesn't really matter what our currency value is at. If our goods are cheaper, people will come here and buy them to sell elsewhere, if they're more expensive, people like PiZ will bring prices down.
The only advantage is that people might come here to buy land.
The only advantage is that people might come here to buy land.
Shnipe- Number of posts : 124
eLocation : Philippines
eRep Function : Chief Prophet of the Narwhal
Reputation : 2
Registration date : 2010-11-04
Re: MM value is getting a little ridiculous
Recent changes in eRep mechanics may have precipitated this situation; especially that 500 HP thing. It would be wise to wait for things to settle down before making any major move on the gov side.
I think local business owners could wait a bit more since our wages are lower than most countries'. And with our new liberalized import tax scheme, we may soon see foreigners selling PHP's they earned off our market. Historically, they tend to lower the PHP value since they'd want to convert their PHP's into gold quickly, either to hoard them or exchange for their own currencies.
So the BoP may not need to adjust its current rates at all; impatient PHP holders could just do it for the BoP by offering the PHP at 0.007g or even lower.
At this point, further vigilance on the MM movements is required. If the situation gets worse in about a week, then let's adjust accordingly.
I think local business owners could wait a bit more since our wages are lower than most countries'. And with our new liberalized import tax scheme, we may soon see foreigners selling PHP's they earned off our market. Historically, they tend to lower the PHP value since they'd want to convert their PHP's into gold quickly, either to hoard them or exchange for their own currencies.
So the BoP may not need to adjust its current rates at all; impatient PHP holders could just do it for the BoP by offering the PHP at 0.007g or even lower.
At this point, further vigilance on the MM movements is required. If the situation gets worse in about a week, then let's adjust accordingly.
nikko_33- Number of posts : 718
Reputation : 0
Registration date : 2009-03-30
Re: MM value is getting a little ridiculous
In a week it is.
I meant competitive in terms of both exports and buying land. lol. Gotta be more vigilant in definitions.
I meant competitive in terms of both exports and buying land. lol. Gotta be more vigilant in definitions.
Negosyo sa tao- Number of posts : 369
eRep Function : Ministry of Finance Minister, and MM Trader
Reputation : 1
Registration date : 2009-03-27
Re: MM value is getting a little ridiculous
Ahh I see...
With regards in buying land, I don't see any advantage if we sell PHP @ 0.005. Because the government will not earn anything if we sell at the said rate.
Let's wait for one week, and let's resume this discussion :)
With regards in buying land, I don't see any advantage if we sell PHP @ 0.005. Because the government will not earn anything if we sell at the said rate.
Let's wait for one week, and let's resume this discussion :)
Revilo X- Number of posts : 1279
eLocation : Palawan
eRep Function : ePhilippines
Reputation : 8
Registration date : 2009-06-03
Re: MM value is getting a little ridiculous
Ahhh....
Exports - It is admittedly being adversely affected by the current situation. But I think local businesses could weather this for the time being. Let's adjust if we see no improvement in the days to come.
Landbuyers - I think we should establish a fund to cater to this market. As I've mentioned before, it could be a citizen - BOP transaction, where the citizen will send the gold for PHP's to BoP at lower rates (0.007g at the moment would be good). We could set this up and announce and promote this in the media, so citizens would be aware of this facility.
Whatya think?
Exports - It is admittedly being adversely affected by the current situation. But I think local businesses could weather this for the time being. Let's adjust if we see no improvement in the days to come.
Landbuyers - I think we should establish a fund to cater to this market. As I've mentioned before, it could be a citizen - BOP transaction, where the citizen will send the gold for PHP's to BoP at lower rates (0.007g at the moment would be good). We could set this up and announce and promote this in the media, so citizens would be aware of this facility.
Whatya think?
nikko_33- Number of posts : 718
Reputation : 0
Registration date : 2009-03-30
Re: MM value is getting a little ridiculous
I think the rate of .01 - .008g has worked out pretty well for us, and plus I think the comparison in the first post is a bit apples to oranges here. We do not have an economy the size of the eUSA or eSerbia, and our market being so small really cannot stand up the the whitewash of competition from the gazillions of companies in the "top 10" . If there is a need for us to devalue, then it should be done at a later time.
As for the land buying scheme, it is an interesting idea.
As for the land buying scheme, it is an interesting idea.
Myung Kei- Number of posts : 225
Age : 30
eLocation : Here, Duh!
eRep Function : "Playa"
Reputation : -3
Registration date : 2009-09-23
Re: MM value is getting a little ridiculous
Prior to the citizenship required to buy land change the serbians in NZ where doing this. They sold 1000NZD for 7gold for land and only land because you dont want to give someone 1000 currency for use in a market where they could gain a few G and lose the gov money. So they made print screens of the land screen mandatory. I purchased about 5 land places this way and its pretty effective and benefits everyone involved makes the gov gold and gives someone a new land spot to purchase a comp and bring in more taxes and such. Seems like a win/win/win lol although now you have to have citizenship in the country you are purchasing land in so you could only offer this service for the people of ePH. On that note I would be interested in something like this as a citizen of ePH as I need more land :3
This only works if you funnel the gold into a "government" org. Which I have no idea at this point if we have (only my 1st day here ^__^ ) but that way you can donate more than 10gold into it :)
This only works if you funnel the gold into a "government" org. Which I have no idea at this point if we have (only my 1st day here ^__^ ) but that way you can donate more than 10gold into it :)
DisDick- Number of posts : 24
Reputation : 2
Registration date : 2011-03-18
Re: MM value is getting a little ridiculous
Precisely what I was talking about weeks ago in another thread.DisDick wrote:Prior to the citizenship required to buy land change the serbians in NZ where doing this. They sold 1000NZD for 7gold for land and only land because you dont want to give someone 1000 currency for use in a market where they could gain a few G and lose the gov money. So they made print screens of the land screen mandatory. I purchased about 5 land places this way and its pretty effective and benefits everyone involved makes the gov gold and gives someone a new land spot to purchase a comp and bring in more taxes and such. Seems like a win/win/win lol although now you have to have citizenship in the country you are purchasing land in so you could only offer this service for the people of ePH. On that note I would be interested in something like this as a citizen of ePH as I need more land :3
This only works if you funnel the gold into a "government" org. Which I have no idea at this point if we have (only my 1st day here ^__^ ) but that way you can donate more than 10gold into it :)
Citizenship is now needed to buy land?!
Oh well...we could still cater to the local buyers.
nikko_33- Number of posts : 718
Reputation : 0
Registration date : 2009-03-30
Re: MM value is getting a little ridiculous
+1Negosyo sa tao wrote:In a week it is.
I meant competitive in terms of both exports and buying land. lol. Gotta be more vigilant in definitions.
Ariel- Number of posts : 3426
eLocation : Philippines
eRep Function : Statesman, Public Servant, Entrepreneur, Journalist, Baker
Reputation : 18
Registration date : 2009-03-24
Re: MM value is getting a little ridiculous
Well, it's nearly been a week so let's review.
I've just looked at one big market, the eUS, and guess what? Their f****** MM value is at 0.006. Yah for us who have a higher MM value than the eUS.
I've just looked at one big market, the eUS, and guess what? Their f****** MM value is at 0.006. Yah for us who have a higher MM value than the eUS.
Negosyo sa tao- Number of posts : 369
eRep Function : Ministry of Finance Minister, and MM Trader
Reputation : 1
Registration date : 2009-03-27
Re: MM value is getting a little ridiculous
Yeah, I've also been worriedly watching the downward movement of the MMs for the past few days. Not only the US, but most other countries' currencies are taking the same trajectory.
Interestingly, our local goods markets have been performing normally - products are being offered and bought at its normal pace, including raws. So I'm wondering why we are not being adversely affected by the current MM situation.
Frankly, I'm stumped at this point. I don't know how we should react, or if we should do anything at all. I myself have been holding on to my foreign currencies, hoping its value would eventually go up. It's a new territory for all of us (USD = 0.006g?!), and I wonder how this will all turn out.
Interestingly, our local goods markets have been performing normally - products are being offered and bought at its normal pace, including raws. So I'm wondering why we are not being adversely affected by the current MM situation.
Frankly, I'm stumped at this point. I don't know how we should react, or if we should do anything at all. I myself have been holding on to my foreign currencies, hoping its value would eventually go up. It's a new territory for all of us (USD = 0.006g?!), and I wonder how this will all turn out.
nikko_33- Number of posts : 718
Reputation : 0
Registration date : 2009-03-30
Re: MM value is getting a little ridiculous
As of 21:10 eRep time on Day 1,235, the current spread on PHP is 164%. It is selling for .007 and being bought at 235 PHP per one gold, or ~.004.
At least on the gold side, the currency is rapidly going even below government-sustainable levels.
At least on the gold side, the currency is rapidly going even below government-sustainable levels.
Hekter- Number of posts : 618
eLocation : ePhilippines
eRep Function : General of the eUS Army
Reputation : 8
Registration date : 2009-05-18
Re: MM value is getting a little ridiculous
I really don't know what should be done at this point, but as a businessman, I think we can still compete in other country with the current MM rate specially in Oil and MT since the demand for these are very high.
I am also amazed to see that our job market is not extremely high unlike in US and other countries, maybe this is one of the reason why we are not much affected by what is happening in MM rates. Buffer?
Should we still play the wait and see game?
I am also amazed to see that our job market is not extremely high unlike in US and other countries, maybe this is one of the reason why we are not much affected by what is happening in MM rates. Buffer?
Should we still play the wait and see game?
Revilo X- Number of posts : 1279
eLocation : Palawan
eRep Function : ePhilippines
Reputation : 8
Registration date : 2009-06-03
Re: MM value is getting a little ridiculous
I'm not extremely knowledgeable on eRepublik economics, but could our currency staying stable be a result of our relatively small population and lack of participators in the monetary market?
This wouldn't be the first time that small countries with few MM players have fared better than larger countries.
This wouldn't be the first time that small countries with few MM players have fared better than larger countries.
nicholas2000- Number of posts : 15
Reputation : 0
Registration date : 2010-04-08
Re: MM value is getting a little ridiculous
Can someone teach me how this MM thing works? Please. xD
Ariel- Number of posts : 3426
eLocation : Philippines
eRep Function : Statesman, Public Servant, Entrepreneur, Journalist, Baker
Reputation : 18
Registration date : 2009-03-24
Re: MM value is getting a little ridiculous
Ariel wrote:Can someone teach me how this MM thing works? Please. xD
Basically, you take a line graph and then draw some up and down lines like you would on an seismograph or on a heart monitor. Then, you interpret the results and then scream that the sky is falling.
But on a serious note, do we want to keep our currency at .08?
Myung Kei- Number of posts : 225
Age : 30
eLocation : Here, Duh!
eRep Function : "Playa"
Reputation : -3
Registration date : 2009-09-23
Re: MM value is getting a little ridiculous
Let's see. Based solely on your seismograph-sky-is-falling analogy, yes.
Ariel- Number of posts : 3426
eLocation : Philippines
eRep Function : Statesman, Public Servant, Entrepreneur, Journalist, Baker
Reputation : 18
Registration date : 2009-03-24
Re: MM value is getting a little ridiculous
I think we should keep the official govt. rate at .008, while letting the market value float.
MM quick and dirty:
spread: the difference between what people are selling PHP at vs. what the people buying the PHP want
what the people buying the PHP want: the first screen when you click the MM link
what people are selling PHP at: when you change the "buy" option from gold [default] to PHP in the MM screen
The rest of the MM is just how people think the spread will change due to free market comp, and other economic decisions that entities like govt. make. It's a racket unless you're paying a lot of attention.
What else?
MM quick and dirty:
spread: the difference between what people are selling PHP at vs. what the people buying the PHP want
what the people buying the PHP want: the first screen when you click the MM link
what people are selling PHP at: when you change the "buy" option from gold [default] to PHP in the MM screen
The rest of the MM is just how people think the spread will change due to free market comp, and other economic decisions that entities like govt. make. It's a racket unless you're paying a lot of attention.
What else?
Negosyo sa tao- Number of posts : 369
eRep Function : Ministry of Finance Minister, and MM Trader
Reputation : 1
Registration date : 2009-03-27
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