It will be used to bolster foreign-exchange reserves depleted by a failed attempt to prevent devaluation of the Thai currency, the baht, and further threatened by the flightof short-term foreign money.
Devaluation means inflation, capital flight (and who wants to hold a depreciating currency?), increased cost of capital, destroyed savings and a lower standard of living.
The trick is writing software and algorithms that tackle industry-specific problems, such as flight scheduling that keeps pilots below flying limits and financial models that account for the cost ofcurrency exchanges.
Much of the recent weakness simply reverses the earlier safe-haven flight to dollars, a sign of investors' optimism about riskier assets rather than their fears about America's currency.
Chavez imposed currency controls a decade ago trying to stem capital flight as his government expropriated large land parcels and dozens of businesses.