Something: Factors Affecting Foreign Exchange Rates
| Factors Affecting Foreign Exchange Rates | The Importance Of Death In The Holocaust |
| THE INFLUENCE OF DUAL IDENTITY | 634 |
| LENNIES LONELINESS QUOTES | 39 |
| ANALYSIS OF EUTHYPHRO AND SOCRATES | 478 |
| COMPARE AND CONTRAST HIROSHIMA AND NAGASAKI | 11 hours ago · Foreign exchange impact: In countries with currencies other than the U.S. dollar, revenues and expenses are translated using monthly average exchange rates. Certain discussions in this release isolate the impact of year-over-year foreign currency fluctuations to better measure the comparability of operating results between periods. Hence, if the exchange rate ever neared the bottom of its permitted range, DM (€ at the DM/Euro conversion rate), the government would be obliged to intervene. In , the UK had inflation three times the rate of Germany, higher interest rates at 15%, and much lower labour productivity than France and Germany, which indicated the. Apr 05, · Factors Affecting Currency Exchange Rate Economical Author: pinsoftek.com Custom Academic Help+ Subject: Factors Affecting Currency Exchange Rate Economical Keywords: factors, affecting, currency, exchange, rate, economical Created Date: 4/18/ PM. |
Changes in the interest rates also impact the foreign exchange amount. Forex rates are always taken into consideration before doing any kind of foreign financial transactions. Anderson, state that increase in the interest rate may cause the currency of a particular country to appreciate in value. This is because high interest rates can be provided to lenders thereby attracting more foreign investments.
Navigation menu
Current Account of a Country A current account reflects the transactions taken place in trade and the foreign investments earned by a particular country. The balance in the account is usually comprised of exports, imports and debts and various other transactions. As discussed earlier, an overall a balance needs to be achieved between the domestic currency and the foreign exchange rates. National debts also impact the domestic affairs and the public affairs. A country with huge debts is less likely to attract foreign investment, which in turn can lead to inflation of prices.
Expert Answer
This can cause a decrease in the exchange value of the currency of that particular nation. This reflects the changes in the import and export prices of goods. When export prices rise, it means that the country has improved its terms of trade and when import prices rise, then the country needs to focus on the terms. Often during the earlier case, higher revenue is earned by a nation which increases its currency value over a period of time. This is the strength of any country which impacts trade to a major extent. A glaring example is the recent Hong Kong protests, which caused huge disturbances in trading and foreign businesses.
Various industries suffered a depreciation in its value due to Factors Affecting Foreign Exchange Rates political turmoil Rapoza, A country with sound financial and trade policy however, will attract more foreign investments. UAE in this case is a leading example http://pinsoftek.com/wp-content/custom/sociological-imagination-essay/violence-essays.php foreign investments across the globe. Below few recent policies of the government will also be discussed to further clarify the issue. Recession When Factorss country experiences recession, the government likely falls under debts causing a fall in the interest rates.
As a result of which foreign capital is decreased causing a weakening in the currency value. The world has been going through a period of recession since the s. Europe and USA was the most affected.
However economists say that UAE can face recent periods of recession at any time, as a global recession is on the rise Wardeh, Speculation Scholars say that if the currency value of a country rises, then investors will automatically be more in demand of the currency value in order to make a profit for the future. With this, the exchange rates will also increase causing foreign link to inflow. In the reports it showed that the Foreign Exchange Reserves comprised of 5. The Factors Affecting Foreign Exchange Rates recent step that was taken by the Government of UAE was to raise the standard of the money exchange houses.]
One thought on “Factors Affecting Foreign Exchange Rates”