Us Dollar Essay

dollar was close to an eight year shortage against the real, having lost more than 33% of its value during 2009 alone. During the past 12 month era, the exchange rate of the U.S. dollar (USD) has diverse from a low of BRL R $1.5310 to in height of BRL $1.7790. During 2010, the United States dollar typically kept an everyday exchange rate between (BRL) R$1.70 and (BRL) R$1.80, occasionally reducing below the (BRL) R$1.70 level.

a) A fall in the value of the Australian dollar (AUD) against the U.S. dollar (USD) benefit Billabong in two folds, strengthened price competitiveness and translation advantage. Firstly, the Americas segment accounts for about 50% of Billabong’s sales revenue in 2008 and 2009. (Appx.1) In case of depreciation of AUD against USD, the price of imported surfwear to the U.S. in terms of USD will decrease. The US importers demand more for Billabong’s products. The sales increases from the strengthened price competitiveness. Secondly, when Billabong received payment from the importers, it will translated back into AUD for use in Australia. As AUD depreciate, the receipt in USD can be translated into more AUD than before, bringing

The US dollar is used in the majority of the international transactions and therefore that happens to the American economy, will influence the international financial resources. Dollars bring big consequences both for the USA and for other countries. The economy of many countries depends on currency dollar. The increase in its course reduces the volume of the income in dollars for the country. And change of US dollar more considerably, than change of an exchange rate of the country. On the

The U.S. has had the most universal currency for decades because of America’s great influence on the world, and because the american capitalist way. In an economic standing America is at the top because of the value of the U.S. dollar. All throughout history dating back to the turn of the nineteenth century the U.S. dollar has been used all over the world both during times of depression and in times of recession. The times the U.S. the U.S. dollar value the most is when there isn't much of it around, but right now America is a a steady climb to inflammation which means the dollar is losing strength. The less the dollar is valued the less power the U.S. has and the more countries will use other secondary currencies. Socialism can stop this from happening altogether and allow America to stay powerful. In a shared wealth economy the money taxed from the people is returned to the people by offering free education and zero medical expenses. This also helps to increase the amount of money in middle class pockets by taxing higher class people more according to their income. When money is held by the people it circulates through the country more before returning to the government, this allows the the vale of the dollar to

Although the Yuan is seen as the new alternative there is one more currency lurking and becoming to be seen as a new way to exchange money, and that’s Bitcoin. Bitcoin is an indented source where individuals create accounts to buy accents in order to have credit. That credit is later use for other individuals to purchase goods anywhere in the world without paying fees to any government bank in order to exchange their currency. But is still works about the same way that the Federal Reserve works since it’s money that it’s not back up by any materialize product as gold and silver and instead just faith that the investors will continue to support it. But the Federal Reserve and Bitcoin still are different since Bitcoin is not support by any government nor has any centralize bank running it. This causes mayor impact to the U.S, since companies and countries might no longer have to go and exchange their currency in dollars and may do it straight forward from one currency to another. In time, the dollar would lose value and the U.S economy may change drastically.

“A weak currency is the sign of a weak economy, and a weak economy leads to a weak nation.” – Ross Perot. The words of the 1992 Presidential candidate still ring true today, and in fact they have since the abolition of the gold standard in 1971 by President Nixon. Ever since that warm August day the United States has been on a death plunge into immaculate amounts of debt. However, by the establishment of the silver standard in the way I will explain to you today, makes it clear that action on such a policy must be taken.

The Fed has the power to reduce or rise interest rates may have an indirect effect on the dollars’ value, and September 11 effect was one of government indirect intervention that to respond to temporary disturbance. Low interest rates may reduce the amount of foreign flow of funds into the U.S., though it is still hard to predict foreign investors behavior because it is all depends on numbers of

The financial crisis of 2008 has been described as the worst financial crisis the world has seen since the great depression, but there are now murmurings of the potential for an even greater financial crisis, a currency crisis, caused by the demise of the US Dollar. The Dollar has been the reserve currency of the world since it took over from the Pound at the end of world war two, but we examine if it is about to crash spectacularly?

With the continuous decline of the United States economy, it leaves us to wonder if there is anything that can be done to stop this degradation. There are several economic policies that can have different effects towards the stability of our countries currency, but one that stands out is the issue of returning to a Gold Standard. Would this be the best course of action, or would it further the problems we currently have, or would it even be better to look at an alternative solution to moor our currency? Understanding these solutions will greatly benefit those of us who live in the United States and can even have a large effect on the world. Those who understand these issues have the knowledge needed to help us make a decision on what would be best for our country’s economy.

since 2000 (Edwards, S., 2005).” As a result of the increase in foreign demand for U.S. assets, Americans have had access to foreign investment enabling the United States to function with large deficits for years. Looking forward, the United States dollar and the economic health of the country is very dependent on foreign investment in U.S. assets. A potential risk looms in the chance that Asian central banks might lower their demand in U.S. assets resulting in a sharp decline in the U.S.

Through out history the currency will collapse when a nation’s debt exceeds its ability to repay even the interest. The government will try to postpone the problem by printing more and more money. But, with the larger the debt, the more dramatic the inflation must be to counter it. The Euro is predicted to crash before the dollar. The dollar, although seeming to be a sound currency, is only sound in relation to the euro. Therefore, once the euro collapses, the dollar will be exposed. After

The dollar became a pure fiat currency after the collapse of Bretton Wood System and the value of other currencies were not pegged to the dollars firmly. Therefore, U.S. dollars lack the functions as the standard of value and store of value theoretically. However, in the absence of a credible alternate currency at that time, the U.S. dollar was still considered as the default reserve currency widely (). In addition, as the exchange of weapon and military protection, in 1971, the Saudis applied pricing all of its oil in U.S. dollars only and was open to investing their surplus oil proceeds in U.S. debt securities. America then sensed the importance of crude in the constantly modern world and settled with similar deals with other oil exporting countries. By 1975, all OPEC members didn’t have a choice but had agreed to popularize trading their oil exclusively in dollars and to hold their surplus oil proceeds in the U.S. government debt markets in exchange for the military defense and welfare offers by the U.S. (Jerry 2011). Since then, with the ending of “USD for Gold “system, the world ushered in a new era of “USD

     In the present day, the world's economy is ever-changing and adjusting. Many different reasons control the reasons for this. The future of currency is something that can only be predicted and is not guaranteed. However, there are many determing factors behind the changes that can take place. Asia and North America are two continents that have economies that have recently changed or are in the midst of change.

dollar. In dollarization, the country abolishes its own currency and uses a foreign currency, such as the U.S. dollar, for all domestic transactions. 6. Emerging market exchange rate regimes. High capital mobility is forcing emerging market nations to choose between free-floating regimes and currency board or dollarization regimes. What are the main outcomes of each of these regimes from the perspective of emerging market nations? There is no doubt that for many emerging markets a currency board, dollarization, and freely-floating exchange rate regimes are all extremes. In fact, many experts feel that the global financial marketplace will drive more and more emerging market nations towards one of these extremes. As illustrated by Exhibit 2.5, there is a distinct lack of “middle ground” left between rigidly fixed and freely floating. In anecdotal support of this argument, a poll of the general population in Mexico in 1999 indicated that 9 out of 10 people would prefer dollarization over a floating-rate peso. Clearly, there are many in the emerging markets of the world who have little faith in their leadership and institutions to implement an effective exchange rate policy.

companies and investments in financial instruments. Fourth, the currency turmoil affects U.S. imports and exports as well as capital flows and the value of the U.S. dollar; the U.S. deficit on trade was rising as these countries import less and export more. Fifth, the crisis is causing economic turmoil that is exposing weaknesses in many financial institutions in Asia; some have gone bankrupt. The economic problems of the troubled Asian economies are adversely affecting the United States, Japan, and others.