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Developing countries

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Sep 20, 2013 08:36 am
#1
Omar33 User

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Зарегистрирован: 22/08/2013

How will the third world countries cope with the rising price of the dollar? Most of the things need to be imported and with the falling domestic economy the price hike is only going to increase. Will the dollar keep increasing against thier Economy?

https://www.fxstat.com/widget/link?t=small&c=7&s=19015&o1=growth&o2=drawdown&o3=monthly&o4=equity

Sep 25, 2013 04:58 pm
illiterate User

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Зарегистрирован: 21/04/2011

Of course it will increase prices of imported commodities. But exchange rate is not a good indication of strength of an economy. If growth rate is high, inflation will automatically increase and currency starts to devalue. Per capita income increases and thus overall economy grows. A country should be worried if growth rate is low but inflation is high.

https://www.fxstat.com/widget/link?t=medium&c=1&s=25892&o1=growth&o2=drawdown&o3=monthly&o4=equity

Sep 26, 2013 05:32 pm
Jogi User

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Зарегистрирован: 06/06/2011

Dollar is an international currency and more than 80% of total foreign currency transactions r made in dollars. That is why it has managed to keep itself at a good position. Relative strength of a currency depends on overall economic situation and inflation in a country. Sometimes countries devalue their currency on purpose

http://www.fxstat.com/widget/link?t=wide&c=1&s=26883&o1=growth&o2=drawdown&o3=monthly&o4=equity

Sep 27, 2013 06:08 pm
Sasha User

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Who told u that dollar is rising?

 

It is only rising against a few, very weak, currencies. Dollar outlook is not very positive and I dun think it is going to get any stronger in next couple of years.

Sep 29, 2013 02:31 pm

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Зарегистрирован: 21/04/2011

Sasha is right. 

Both Eur and Usd r going to get weaken as I dun see any solid strength in U.S economy or solution to Eurozone debt problems.

Stick to your rules

Oct 04, 2013 10:50 am
A123 User

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Зарегистрирован: 20/08/2013

Originally posted by Jogi

Dollar is an international currency and more than 80% of total foreign currency transactions r made in dollars. That is why it has managed to keep itself at a good position. Relative strength of a currency depends on overall economic situation and inflation in a country. Sometimes countries devalue their currency on purpose

 



 

Can explain more about the part that some countries devalue their currency on purpose !!!

why would they do that?

https://www.fxstat.com/widget/link?t=wide&c=1&s=18981&o1=growth&o2=drawdown&o3=monthly&o4=equity

Oct 04, 2013 03:06 pm
Jogi User

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Зарегистрирован: 06/06/2011

Originally posted by uniquetrader

 

Sasha is right. 

 

Both Eur and Usd r going to get weaken as I dun see any solid strength in U.S economy or solution to Eurozone debt problems.

 



 

In recent past, japan was accused of weakening its currency intentionally. I dun see any serious danger to either U.S or Eurozone as they have already passed the difficult phase of crisis. No doubt that recovery is taking long especially for Eurozone but I dun think it will have any serious impact. Recent U.S shutdown has almost no impact on dollar as most analyst expect this shutdown to end soon. 

http://www.fxstat.com/widget/link?t=wide&c=1&s=26883&o1=growth&o2=drawdown&o3=monthly&o4=equity

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