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Since our topic this week is on exchange rates i thought it would be a good time to address a topic of interest to me - virtual money. the bitcoin is accepted as a form of currency by many and from the article, we can deduce that it has a high exchange rate. A norwegian man had bout $27 worth of bitcoins which now translates to $886,000. this value and exchange rate is un-paramounted and extremely high but there are reasons for this. Bitcoins are now being used as a form of currency for illegal trading - forged documentation serving as an example. This increase in demand has lead to appreciation for the value however many countries are just starting to recognise the bitcoins currency value. many owners are just starting to accept bitcoins as a form of payment in the hopes that it can appreciate and they can sell it for more in the future. However in the article we get an understanding that the bitcoin fluctuates greatly. This detracts consumer confidence however the sheer idea of investing in virtual money is enticing to many, increasing the demand for the bitcoin.

The areticle is about the Reserve Bank of India stopped listening to lullabies of praise on its exemplary handling of monetary and exchange rate policies. The current policy keeps piling up useless reserves, offers wholly avoidable arbitrage opportunities to patriotic residents and even more patriotic non-residents, hikes interest rates, depresses growth and widens the fiscal deficit. People are raising dollar debt and not bothering to cover forward. They are confident that the rupee would either appreciate against the dollar or at least hold steady till repayment time.When dollars come into India, they have to be converted into rupees. This conversion bloats our forex reserves and injects rupees into the system. If all the rupees created as a result of dollar inflows were to be allowed to add to the money supply, that would reduce interest rates and also create the potential for inflation. So the RBI sterilises such rupee injections by selling government bonds and mopping up rupees from the system. The increased supply of government bonds brings down their price, hiking the yield. Thus, sterilisation pushes up interest rates.

Discusses exchange rate between USD, GBP and EUR

This article shows an example of how exchange rate changes can affect revenue for firms. 

This article illustrates the relationship between the pound and the Australian dollar, as well as the pound and the New Zealand dollar. The article states that "the Pound to Australian Dollar median forecast is for 1.8300 GBP/AUD in 8 months" and the latter exchange rate is "predicted to reach 2.1200 GBP/NZD in 8 months."

This article talks about how fluctuating exchange rates might have less to do with how a country performed one year, and more to do with other countries and how those countries performed that year.

Due to a combination of factors, the value of the Euro is expected to depreciate relative to the United States Dollar in the next few days. The European Central Bank lowered its base interest rates to their lowest levels in many years due to an issue of stagflation (no growth, high inflation) which is expected to decrease the value of the currency further. Meanwhile, economic growth in the US has exceeded expectations, making it likely that the value of the Euro will fall very again very soon.

NEW DELHI got caught off guard by recent appreciation of the rupee, particularly against the euro, the majority of the exporting firms surveyed by FICCI want the Reserve Bank to peg a fixed currency exchange rate. They took a cue from China, which has pegged a fixed rate of yuan against the US dollar.An overwhelming 88 per cent of the 278 exporting firms participating in the survey, said the sudden appreciation in rupee has affected their margins. They lost on account of forward contracts that were booked to hedge currency risk.

In a large foreign bank, there are reports coming from insiders that employees manipulated foreign exchange rates. As this market isn't regulated, all claims would have to be monitored through individual interactions.

When it comes to the reasons of deflation most of the economists see it as a monetary phenomenon which is affected by demand and supply. If the supply of money is more than demand then the value of money increases and prices go up as a consequence. When the supply of the products are higher than demand it results with the mass production which leads to the fall of prices. Some people believe that the deflation occurs because of the mass production and falling the aggregate level of demand. The biggest effect of deflation is unemployement. Deefletion is more serious and dfficult than inflation. To prevent deflation first is give an upward push to the aggreagte demand by increasing government spending or the second they can increase the money supply by decreasing cash reverse ratio.

When it comes to the deflation some of the economists believe that it is a monetary phenomenon which is affected by supply and demand. The reasons that leads to deflation are if supply of money is less than its demand than the value of money increases and the prices would go up. If the supply of the product is more tha its demand then it will lead to the mass production which the large amount of products will lead the prices to fall immidietly. The biggest effect of deflation is unempoyment. Deflation is more diffucult and serious than inflation. To prevent deflation first give an upward push to the aggregate demand by increasing government spending or the secong they can increase the money supply by decreasing cash reserve ratio.

Japan is facing deflation, and it will effect the consumer confidence because of the exchange rate, this will cause a downward slope in the aggregate demand to shift to the left.

this article is about the fact that the US is dollar is suffering from a value depreciation. However i think that the interesting part about this article is the fact that people are reluctant in the US to accept the fact that they are on the decline from being the number on economic super power in the world.