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40What is the exchange rate?

The exchange rate is the value of the local currency against other foreign currencies. exchange rate plays a vital role in trade and economic activity of the state, so is the currency moves by central banks as well as investors monitored. the local currency is influenced by a number of factors exchange rate against any foreign currency, those factors are:
The level of inflation:
Whenever the level of inflation rose whenever fallen value of the currency, and vice versa in the case of declining inflation, with high value and purchasing power of the currency. central banks monitor the movements of the local currency, due to the strong impact on the inflation path, where to maintain the stability of inflation is one of the priorities of the central bank of the state. Seeking countries that suffer from the low level of inflation to devalue the currency in order to support the rise in inflation towards specific levels, and this is done through what is known as facilitation measures, which in turn contribute devaluation.
Interest rate:

There is a close combine all of the interest rate relationship, and the level of inflation and the exchange rate. Central …
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rupesh1984 avatar
rupesh1984 30 Dec.

useful information!

FXNOAD avatar
FXNOAD 30 Dec.

Thank you for your comments encouraging and I hope that the article will be useful for everyone

ztraderindex avatar

its good for ading to your fundamental analysis

WallStreetBlog avatar

Muy interesante!!!

Natali_Niyazova avatar

nice article!

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Oil had a roller-coaster year in 2014 with prices dropping to multi-year lows. If the story were to be dramatized, ‘How the mighty has fallen’ would be a perfect title. Unlike other commodities, oil has a great influence on the global economy as it is a key component in all the sectors.
This article looks at the story behind the oil price fall and how the low oil prices have impacted the global economy.
Oil Price History
Fig 1: Historical prices of crude oil
Fig 1 shows the historical prices of crude oil from 1946 to date exhibiting huge swings. The volatility in the price can be explained by key events in history.
  • From 1948 through the end of the 1960s, crude oil prices ranged between $2.50 and $3.00.
  • The Organization of the Petroleum Exporting Countries (OPEC) was formed in 1960 with 5 founding members. By the end of 1971, six other nations had joined the group.
  • The Yom Kippur War started on October 5, 1973. By the end of 1974, the nominal price of oil had quadrupled to more than $12.00.
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Stix avatar
Stix 22 Feb.

I appreciate the topic. Thank you very much ! :) :)

TelisHellano avatar

Very good article indeed, precise and analytic

777Eva avatar
777Eva 23 Feb.


lelipuzik avatar
lelipuzik 25 Feb.

really cool and interesting!

al_dcdemo avatar
al_dcdemo 15 Nov.

I learned a lot from this article. Thoroughly and very well explained. Well deserved win!

orto leave comments