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Haydn W

The return of the US dollar | Mohamed El-Erian | Business | theguardian.com - 4 views

www.theguardian.com/...d-el-erian-return-of-us-dollar

shared by Haydn W on 18 Nov 14 - No Cached
  • The return of the US dollar The resurgence of the US currency could be the first promising step in steering the world economy away from crisis
  • The US dollar is on the move. In the last four months alone, it has soared by more than 7% compared with a basket of more than a dozen global currencies, and by even more against the euro and the Japanese yen.
  • Two major factors are currently working in the dollar’s favour
  • ...11 more annotations...
  • Second, after a period of alignment, the monetary policies of these three large and systemically important economies are diverging, taking the world economy from a multi-speed trajectory to a multi-track one.
  • First, the United States is consistently outperforming Europe and Japan in terms of economic growth and dynamism – and will likely continue to do so – owing not only to its economic flexibility and entrepreneurial energy, but also to its more decisive policy action since the start of the global financial crisis.
  • With higher US market interest rates attracting additional capital inflows and pushing the dollar even higher, the currency’s revaluation would appear to be just what the doctor ordered when it comes to catalysing a long-awaited global rebalancing – one that promotes stronger growth and mitigates deflation risk in Europe and Japan.
  • ECB President Mario Draghi signalled a willingness to expand his institution’s balance sheet by a massive €1 trillion ($1.25 trillion).
  • Furthermore, sudden large currency moves tend to translate into financial-market instability.
  • There is also the risk that, given the role of the ECB and the Bank of Japan in shaping their currencies’ performance, such a shift could be characterized as a “currency war” in the US Congress, prompting a retaliatory policy response.
  • Today, many of these countries have adopted more flexible exchange-rate regimes, and quite a few retain adequate reserve holdings.
  • an appreciating dollar improves the price competitiveness of European and Japanese companies in the US and other markets
  • But a new issue risks bringing about a similarly problematic outcome: By repeatedly repressing financial-market volatility over the last few years, central-bank policies have inadvertently encouraged excessive risk-taking, which has pushed many financial-asset prices higher than economic fundamentals warrant.
  • This is not to say that the currency re-alignment that is currently underway is necessarily a problematic development; on the contrary, it has the potential to boost the global economy by supporting the recovery of some of its most challenged components. But the only way to take advantage of the re-alignment’s benefits, without experiencing serious economic disruptions and financial-market volatility, is to introduce complementary growth-enhancing policy adjustments, such as accelerating structural reforms, balancing aggregate demand, and reducing or eliminating debt overhangs.
  • The US dollar’s resurgence, while promising, is only a first step. It is up to governments to ensure that the ongoing currency re-alignment supports a balanced, stable, and sustainable economic recovery. Otherwise, they may find themselves again in the unpleasant business of mitigating financial instability.
  • Haydn W on 18 Nov 14
     
    This article details the so called resurgence of the US dollar, in terms of currency value. The currency itself has risen by around 7% against other currencies but Guardian economist Mohamed El-Erian warns that without the appropriate accompanying central bank policies, the rise of the dollar could cause further market volatility and at worst a new crash. El-Erian calls for governments to enact policy to support balance the current currency realignment. 
Marenne M

Nigeria devalues currency as oil prices drop - FT.com - 5 views

www.ft.com/...9b-11e4-8321-00144feabdc0.html

'currency value'

shared by Marenne M on 25 Nov 14 - No Cached
  • Nigeria has devalued its currency by nearly 10 per cent and raised interest rates to record levels, in one of the clearest signs yet of how oil producing nations are struggling as energy prices drop sharply.
  • Marenne M on 25 Nov 14
     
    This article describes the devaluation of the fixed currency rate of Nigeria as a result of the decreased energy prices. Nigeria is an oil producing country and therefore earns a lot of its income through oil exports. Now that the prices of other energy has dropped, there is a lower demand for the Nigerian oil, leading to fewer exports. The Nigerian central bank has now devaluated its currency by 8.4 percent in the hope that the lower prices will encourage a greater demand for their oil exports.
Pip Dop

Bitcoin Volatility Problem Solved? Bringing Block Chain Benefits to Traditional Fiat Cu... - 5 views

www.ibtimes.co.uk/ditional-fiat-currency-1474485

Bitcoin currency volatility

shared by Pip Dop on 23 Nov 14 - No Cached
  • Pip Dop on 23 Nov 14
     
    This article is about one of the less mainstream currencies that exist: Bitcoin. This is an online currency that has genuine potential, but, as the article explains, one of the biggest obstacles to mainstream adoption for bitcoin is its price volatility. The unpredictable price volatility means that for the vast majority of people, the currency is impossible to use as it would be too risky. The payments that ARE made with Bitcoin are immediately converted into real currencies, defeating the point of Bitcoin.
  • Daniel Soto Aggard on 26 Nov 14
     
    Great article. Really informative. I actually didn't know about the Bitcoin, but this is very insightful.
John B

No downward pressure on currency: banker - 3 views

www.gulf-times.com/...d-pressure-on-currency:-banker

Currency value

shared by John B on 21 Nov 14 - No Cached
  • John B on 21 Nov 14
     
    This article deals with the currency of Sri Lanka, the rupee. The traders say there is a downward pressure on the currency, while the government denies this.
Yassine G

Islamic State Says It Plans to Issue Its Own Currency - NYTimes.com - 2 views

www.nytimes.com/...o-issue-its-own-currency-.html

currency supply value

shared by Yassine G on 22 Nov 14 - No Cached
  • Yassine G on 22 Nov 14
     
    This article talks about how a group of people is considering creating their own currency.This raises many questions as would it be acceptable and what s the outcome on the rest of the world's economy especially that gold is intend to be used. 
Aleksi B

Toyota posts 23% jump in net income, helped by weak yen, cost cuts - 2 views

www.autonews.com/...e-helped-by-weak-yen-cost-cuts

Currency values cost cuts toyota

shared by Aleksi B on 25 Nov 14 - No Cached
  • Aleksi B on 25 Nov 14
     
    This article shows that taking advantage of different currencies Toyota managed to increase their net profit
Sungmin Lee

How to game the $5.3 trillion currency market - 0 views

money.cnn.com/...rency-trading-foreign-exchange

exchange rates Big Banks

shared by Sungmin Lee on 12 Nov 14 - No Cached
  • Sungmin Lee on 12 Nov 14
     
    Three traders, who called themselves the "Three Musketeers", worked in big corporate banks and that met in a chat room to coordinate their buying and selling to shift currencies to their favor. Regulators have caught onto what these traders and banks have been doing and fined them with a fine over $4 billion.
Mariam P

Russians boost foreign-currency deposits in October -central bank data - 6 views

www.reuters.com/...deposits-idUSL6N0T841O20141118

currency values

shared by Mariam P on 24 Nov 14 - No Cached
  • Mariam P on 24 Nov 14
     
    Russians had 3.856 trillion roubles' ($82.27 billion) worth of foreign-currency deposits as of Nov. 1, compared to 3.421 trillion roubles on Oct. 1, an increase of more than 12 percent. Their rouble deposits fell by 0.3 percent to 13.829 trillion roubles over the same period, according to the central bank.
  • Pip Dop on 29 Nov 14
     
    The article presents an insight on what seems to be the most significant economic effect of the sanctions the EU has imposed on it in response to their invasion of the Ukraine.
Haydn W

NBRD: Belarus pursues balanced exchange rate policy | Economy | Headlines - 1 views

eng.belta.by/...hange-rate-policy_i_77318.html

Exchange Rates Belarus

shared by Haydn W on 16 Nov 14 - No Cached
  • MINSK, 14 November (BelTA) - Belarus pursues a balanced exchange rate policy and has been reducing the exchange rate of the Belarusian ruble gradually
  • Deputy Chairman of the Board of the Belarus National Bank Sergei Kalechits said at the Belarus-UK investment forum in London on 14 November
  • "We pursue quite a balanced exchange rate policy which is aimed at gradual reduction of the exchange rate. On the one hand, this is a reaction to the devaluation of the currencies of Belarus' major trading partners, which allows us to maintain the competitiveness of domestic exports,"
  • ...3 more annotations...
  • Sergei Kalechits also noted the National Bank pays great attention to the efficiency of credit resources. "This, too, is a key to the monetary stability," he said.
  • In general, an important element in raising foreign investment and improving the investment climate is the macroeconomic and monetary stability, primarily due to the lower inflation. "This is what our monetary policy is aimed at. Due to objective reasons, this rate is still fairly high,” he said.
  • The second goal that our monetary policy is aimed at maintaining the country's international reserves,” Sergei Kalechits noted.
  • Haydn W on 16 Nov 14
     
    This article from Belarusian news agency BeITA explains the exchange rate policy of the Belarusian National Bank, as described by Deputy Chairman Sergei Kalechits. It explains policy regarding the managed float status of the Belarusian Ruble and how the government pursues a balanced policy surrounding the currency, aiming to reduce the interest rate whilst maintaining competitive advantage with domestic exports.
Amanda Anna G

Venezuela to toughen price controls, set profits - Yahoo News - 0 views

news.yahoo.com/rofits-122109181--finance.html

pirce-controls

shared by Amanda Anna G on 14 Nov 13 - No Cached
  • CARACAS, Venezuela (AP) — Venezuelan President Nicolas Maduro is extending price controls and will place limits on profits as he extends attempts to curb the galloping inflation that is eroding support for his rule.
  • Maduro made the announcement in a late-night television address Sunday in which he also vowed to step up inspections of businesses selling shoes, clothing, automobiles and other goods to make sure they aren't gouging consumers.
  • Amanda Anna G on 14 Nov 13
     
    In Venezuela, the president Nicolas Maduro has extended price controls to prevent the inflation that is (against) support for his rule. "We can't allow our hard currency to be used to rob people through the sale of these goods." he harangued businessmen he accuses of usury. This article relates to price controls and politics, and shows how price controls might look like when a country is ruled by dictatorship.
Zube Iheobi

Banks brace for £3bn fine over foreign exchange rigging | The Times - 0 views

www.thetimes.co.uk/...article4264317.ece

exchange rates

shared by Zube Iheobi on 30 Nov 14 - No Cached
  • Zube Iheobi on 30 Nov 14
     
    foreign exchange rigging displays the vitalness and potential benefits that can com from aving a good value to your currency
Hyobin Lim

Russia's Currency Is Plummeting and Putin's Billionaires Are Cannibalizing Each Other - 2 views

www.newrepublic.com/...psing-due-sanctions-stagnation

currency rubles

shared by Hyobin Lim on 23 Nov 14 - No Cached
  • Daniel Soto Aggard on 23 Nov 14
     
    The article concerns over the depreciation of the Ruble over the recent months that have passed. It was predicted that the Ruble would reach approximately 32.86 Rubles to the US dollar. However last month (November 1st to be exact), the Ruble reached a staggering 43 rubles to one US dollar. Being a 30 percent increase before the predicted depreciation. It has depreciated so suddenly and so quickly that the value is being measured, monitored, and shown by the minute rather than the day. Thus creating panic.
  • Hyobin Lim on 26 Nov 14
     
    Despite the Russian Central Bank's spending of $40 billion over the last two months, the ruble has been significantly dropping for weeks. The price of 1 USD was 32.86 rubles in January, but is now 43 rubles, a drop of over 30%. Food prices in Russia have sky rocketed, dairy and meat costing over 10% more.
Clemence Lafeuille

UK industry export orders hit euro headwinds - 3 views

news.sky.com/...port-orders-hit-euro-headwinds

UK exchange rates currency values

shared by Clemence Lafeuille on 20 Nov 14 - No Cached
  • Clemence Lafeuille on 20 Nov 14
     
    This article talks about the loss of faith there is in the Euro currently because of the conflict with Ukraine and Russia, and how that negatively impacts the UK because its main export zone is Europe. Also, it mentions that the pound is strong when maybe it would be better if the pound was weak, so that refers back to our debate of "Is it better to have a strong or weak currency?"
Aleksi B

India Plans Price Controls on Patented Drugs - WSJ.com - 0 views

online.wsj.com/...390443819404577633070809995582

india price controls drugs

shared by Aleksi B on 17 Nov 13 - No Cached
  • India plans to widen the scope of price controls on pharmaceuticals
  • The new proposals would extend price restrictions beyond generic medicines to apply for the first time to patented drugs
  • The plans come as Bayer AG BAYN.XE -0.17% Bayer AG Germany: Xetra €94.89 -0.16 -0.17% Nov. 15, 2013 5:35 pm Volume : 2.67M P/E Ratio 25.24 Market Cap €78.47 Billion Dividend Yield 2.00% Rev. per Employee €363,176 10/31/13 Bayer Boosted by New Drugs 09/13/13 Bayer Under Scrutiny in China More quote details and news » BAYN.XE in Your Value Your Change Short position is fighting an order from India's patent authority that required the Germany company to issue a license allowing an Indian generic-drug company to sell a less expensive copy of Bayer's patented cancer drug Nexavar.
  • ...3 more annotations...
  • India sets prices for 74 generic medicines and is considering increasing the number of medicines covered by price caps to 348
  • Any attempt to restrict prices of patented drugs likely will rankle foreign pharmaceutical companies
  • The move raised fears in India that without price controls patented drugs might be unaffordable for a majority of the country's 1.2 billion people.
  • Aleksi B on 17 Nov 13
     
    The article explains on how India are planning to put price controls on their drugs making them go for lower prices so that people can afford them.
Fiete M

Rajan Needs Help From Delhi in Inflation Fight - 0 views

blogs.wsj.com/...m-new-delhi-in-inflation-fight

elasticity india demand money inflation

shared by Fiete M on 29 Oct 13 - No Cached
  • Fiete M on 29 Oct 13
     
    This article shows how elastic Indias currency the Rupie is, and how a small increase in interest rate can cause a huge increase in inflation
Pietro AA

U.S. Oil Prices: Let the Good Times Roll - 1 views

oilprice.com/...s-Let-the-Good-Times-Roll.html

equilibrium prediction oil dollar

shared by Pietro AA on 15 Oct 13 - No Cached
  • Pietro AA on 15 Oct 13
     
    A great article talking about how the equilibrium of the oil market affects currencies, especially the dollar as barrels are mainly exchanged using dollars.
Aleksi B

Zambia attained favorable Balance of Payments in second quarter of 2014 | UKZAMBIANS - 0 views

ukzambians.co.uk/...ents-in-second-quarter-of-2014

Currency zambia balance of payments BoP

shared by Aleksi B on 16 Dec 14 - No Cached
  • Aleksi B on 16 Dec 14
     
    Zambia in recent times has been able to maintain a favourable balance of payments within the second quarter of 2014
Clemence Lafeuille

Monetary Union Works Because Europe Is Already Integrated - 0 views

www.huffingtonpost.com/...ry-union-europe_b_6430854.html

terms of trade monetary union central bank european union

shared by Clemence Lafeuille on 18 Jan 15 - No Cached
  • Daniel Soto Aggard on 18 Jan 15
     
    The monetary union of the Euro zone has been heavily criticized as only a place that shares one thing: its currency. It has been judged however they have incorrect, due to the integration of the countries' economies.
  • Clemence Lafeuille on 22 Jan 15
     
    This article really looks into how a monetary union can work when it is so divided, and it goes on to say that the political ties are what enables it to thrive without major disturbances. It also mentions how important these ties are for the central bank and monetary policy of the bloc to work
Hyobin Lim

Venezuela's New Exchange Rate System Is Paying Off - 2 views

www.usnews.com/...-with-new-exchange-rate-system

exchange rates inflation

shared by Hyobin Lim on 17 Nov 14 - No Cached
  • Hyobin Lim on 17 Nov 14
     
    Venezuela is known to have a higher inflation than that of its trading partners. In the fall of 2012, Venezuela's inflation and the black market rate for the dollar both began to rise. However, the government announced a new system, SICAD II, on February 19 to break the cycle of inflation-depreciation. So far, the new system has tamed the black market. It is predicted that SICAD II will draw currency exchanges away from the black market, but it also stated that it will worsen the inflation problem.
Zube Iheobi

Togo: Togolese economist argues for fixed exchange rates for ECOWAS currencies - 0 views

www.africanmanager.com/...detail_article.php

fixed exchange rates

shared by Zube Iheobi on 14 Nov 14 - No Cached
  • Zube Iheobi on 14 Nov 14
     
    this article demonstrates the effectivnes of having a fixed method of exchange rates for LED'C's. it alows them more stability and therefor more prospects for trade
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