Exchange rates: what determines the value of the dollar?
what causes depends on the price and the growth of the dollar, the ratio of the value of currencies of different countries? Why it sometimes is cheaper? To these questions you will find answers below. The causes of UPS and downs will be considered and tell us about them, the editor of the portal , where you can find the current exchange rates online.
Change the indicated cost primarily depend on the credit system, which dictates their conditions around the world. To be more precise, the system of the economy that gets taken out loans in us banks.
Also, the dollar equivalent depends on the amount of American gold, that is, the greater the amount of gold the government has, the more confident rests on the Bank exchanges the currency of these countries. This principle applies to any currency and country. A Prime example is Africa, where the amount of precious metals is much greater and their production by private companies.
the behavior of the currency is so unpredictable that even the most advanced experts can't predict 100% how it will behave.
For example, consider the fluctuations of the American currency against the ruble. They are not chaotic but have some background and reason.
Main causes of fluctuations in the value of the dollar
the causes of the fluctuations in the dollar can be divided into the following groups:
the- exterior
- internal.
External factors
the Main external factors influencing the growth of the dollar is the world price of oil. Since Russia is an oil appendage of the world, its economy is directly dependent on the price of this strategic raw material. There is a direct correlation: the higher the price of oil in dollars, the lower rate of the American currency to the Russian ruble. This condition is the main decisive factor influencing the exchange rate of the U.S. currency relative to the Russian currency. If the price of oil begins to fall, then Russia starts to lose the profit from the sale of oil. She is forced to devalue its own money to the ruble equivalent of proceeds in the cost of oil has not disappeared or decreased not too noticeable.
Another important ‘external" factor is the rate of the dollar relative to other currencies. If the U.S. currency depreciates against the Euro, it is cheaper and the ruble.
Internal factors
the Main internal factor influencing the fluctuations of the us dollar against the Russian ruble is the demand for currency in the Russian Federation. If there is a decline of quotations on the stock market, investors are moving from stock in more reliable assets. As a result, the demand for currency is growing, and along with the demand is growing and the course. This process is often unable to resist the foreign exchange intervention of the Central Bank of Russia.
Another reason is the General economic and political situation in Russia. In times of crises the credibility of the local currency falls, and people are starting to buy dollars as the most stable and reliable currency. This leads to a significant appreciation of the U.S. currency against the Russian ruble.
Parameters that affect the dollar exchange rate
the Main parameters that affect the price of the us dollar relative to other currencies:
the- the Volume of current emissions, this figure has a direct impact on the value of the monetary unit;
- the country's Economy, which is called by the Issuer. The stronger the economy of the United States of America, the less chance that will decrease the value of its currency.
Ïåðåâåäåíî ñåðâèñîì "ßíäåêñ.Ïåðåâîä÷èê": translate.yandex.ru.
Source: http://uzinform.com.ua/
