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The Impending Currency Battle of Central Banks

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The Impending Currency Battle of Central Banks

There is a battle that Central banks will go through which involves currencies around the world. 

This war could have a positive or negative impact on a country’s economy depending on the country and the perspective.

Not long ago Central banks responded accordingly to the fluctuations of the world banking system. 

There was affordable credit and the lower value of the USD.

The lowering of the USD helped China’s assets, and marketing emanates. 

This decrease in the USD created a thirst for global trade from 2009-2014.

Towards the middle of 2014, the central banks have experienced the opposite of growing trade. 

Instead, the increase in the value of a dollar created an adverse effect on China and decreased China’s flow of capital, commodities, and exports.

China used to borrow a devalued USD and boost their investments for top giving markets.

With the rising of the USD dollar value, it lessened China’s competitive edge.

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This struggle in the global markets continues through the year 201 because of a stronger dollar. 

Groups have tried to reduce the value of a dollar like G20 nations such as Argentina, France, Turkey, India, Brazil, and China to name a few.

The U.S. dollar has a gain of 25%, and the value of the dollar went from 80-100 according to the USD Index.

The problem with foreign exchange is that while a stronger dollar may benefit the consumer owner of the dollar, it can mean at the same time extreme losses for other countries experiencing negative impact when the monetary value rises.

Contrary to the currency value increases, countries like Japan may benefit from a stronger dollar because it weakens the yen.

The USD’ role is both domestic and international.  Depending on which country you are in there will be a battle of central banks. 

The rise of the USD could mean good things as well as have an adverse impact on the economy.

Some banks will try to lower their interest rates in hopes of giving a rise to exports. 

On the opposite end, if the banks did reduce their interest rates it may result in capital flights.

Capital flights may lead to the devaluing of currency and the reduction of purchasing power and riches of those who own the currency.  Consumers may appeal to placing their cash into money that results in a stronger dollar.

It is like a circle. 

China can to try to devalue their currency.  If China decides not to do this, their currency rises causing others to devalue their currency and lessen exports in the market.

It’s almost like a Catch 22. 

If you do something about the value of the dollar, it produces some negative and positive effects. If you don’t do something it also produces negative and positive effects.

Sources also speculate that if the Federal Banks cannot raise interest rates after growth, they will no longer be credible.

Price increases will speed capital flow into the USD, and the value of a dollar will go higher.  The higher the value of the dollar, the more China will suffer and so will US profits overseas.

What does a top dollar mean for the USA?

  • A high dollar could make products made by foreign manufacturers more appealing to the American consumer.
  • Products made by foreign countries could threaten our U.S. companies such General Motors or Ford.
  • It would be more competitive for our U.s businesses to compete with the Euro.
  • Conversely, a stronger dollar could affect our sales international trade of exports.  This battle is both good and bad and is seems to stem from the value of a dollar.

The central banks deal with these fluctuating rates in world trade.  The result can lead banks and financial workers at a crossroads of what to do.

The strength of the dollar also shows signs that the United States economy is improving.

It is even more beneficial for Americans to travel around the world since the power of the dollar. 

The price of imported goods is lower and can entice Americans to purchase internationally.

If any central bank raises the rate, it will attract assets in search of a rise in return and the currency to appreciate.

Central banks everywhere are at a war regardless of what policy enforces by the Federal Reserve.  There will be gain and losses in this war.

Do we advocate a high dollar and raise domestic consumer’s power to purchase or do we support a devaluing of the dollar to open up to countries who depend on our devaluing of the dollar? 

Whatever country you live in, this currency battle may be right or wrong for you and the central banks.

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Business

RetailMeNot’s Five to Buy in February

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RetailMeNot's Five to Buy in February
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The wintry temps may make you cold, but February deals are sure to warm your heart. It’s not only a great time to shower your valentine with roses and gifts, but it’s a great time to make other smart and timely purchases as well.

The shopping and trends expert for RetailMeNot, Sara Skirboll, agrees. “With the biggest football game of the year, Valentine’s Day and Presidents Day on the horizon, retailers will offer tremendous savings on a variety of categories — from TVs and TV dinners to all of your Valentine’s Day needs.

1. Play Cupid

With Valentine’s Day this month, shoppers might be struggling to find the right present that symbolizes their love. You can never go wrong with a customized gift made especially for them. This month, shoppers looking to go the extra mile for their loved one will save an average of 40% on items like personalized photo albums, picture frames, wall art and more. You name it, they make it — and just because it’s customized doesn’t mean it will break the bank. Turn to retailers like Shutterfly who is offering a RetailMeNot exclusive for 28% off your regular priced purchase.

2. Ding-Dong Deals

While some might make dinner reservations at the fanciest restaurant in town, many will opt to eat at home. Those who do can take advantage of special promotions and discounts. In fact, diners can save an average of 30% off all month long, so be sure to search the food delivery deals from RetailMeNot. Right now, DoorDash is offering 25% off your first purchase and Postmates is offering $15 delivery credit for existing users.

3. Flower Power

Everything’s coming up roses! According to a recent RetailMeNot survey, 46% of shoppers plan to buy flowers for Valentine’s Day this year, up from 34% in 2019. Many florists will be offering promotions and discounts to help shoppers prepare for the holiday. This year, retailers like 1800Flowers are having up to 40% off flowers & gifts and FTD is offering a RetailMeNot exclusive offer for 20% off sitewide.

4. Get Your Game On

Attention sports fans: Discounts on electronics are not strictly reserved for Black Friday! In fact, February is the second-cheapest time of year to buy a new TV. With the big game right around the corner and March Madness close behind, manufacturers will use those big-time events to highlight big savings on big-screen sets. Another reason for the markdowns is that new models will be released next month, so retailers will be looking to make room for new inventory. Shoppers in the market for a new TV should head to Samsung where they can get 10% cash back with RetailMeNot, and Best Buy where they can find up to 64% off clearance items.

5. Meet Your (Price) Match

Life can easily get in the way of finding “the one,” but online dating sites and convenient mobile apps are here to help. Those looking for love are in luck: Dating sites can offer up to 75% off enrollment fees to encourage singles to put themselves out there. Dating sites like eHarmony are offering 35% off all subscriptions and OkCupid is offering free membership.

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Shutterstock Announced as Official Photographer of the 2020 EE British Academy Film Awards

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shutterstock 2020 EE British Academy Film Awards
Shutterstock Announced as Official Photographer of the 2020 EE British Academy Film Awards (Photo: PR Newswire)

Shutterstock, Inc., a leading global technology company offering a creative platform for high-quality content, tools and services, today announced that it has been renewed as the official photographer of the 2020 EE British Academy Film Awards, which recognizes the very best in film over the past year. As the official photographer of the show on Sunday, February 2nd, Shutterstock’s on-site entertainment photographers, editors and engineering team will deliver exclusive high-quality images from the event at the Royal Albert Hall in London to the world in less than one minute from the image being taken.

Shutterstock’s editorial team captures, edits and distributes celebrity portraits and candid images leveraging proprietary software optimized for speed to market. As the moments from the red carpet, inside the awards show, and at the after-parties are captured, Shutterstock’s team makes lightning-fast crops and edits and transmits them directly to the desks of photo editors, writers and media. This speed-to-market empowers Shutterstock’s editorial customers to keep up with today’s fast news cycle to quickly deliver their news stories.

“We are pleased to continue our long-standing relationship with BAFTA, an arts charity whose purpose of celebrating and supporting the best work and talent in film, games and television is closely aligned with Shutterstock’s,” said Candice Murray, Vice President of Editorial at Shutterstock. “As a company whose passion is rooted in creativity, it is always an honor to be selected to shoot and share these unique moments recognizing the industry’s top creatives from around the world at the BAFTAs.”

“Shutterstock is best equipped to provide the world’s media with high-quality images of our awards ceremonies and year-round program through their advanced creative platform,” said Claire Rees, Photography Director for British Academy of Film and Television Arts. “Our partnership has grown over the years and as Shutterstock’s technology and service continue to evolve, we continue to see greater results in amplifying the mission of BAFTA around the world.”

Shutterstock’s annual partnership with BAFTA, a world-leading independent arts charity, originated in 2013 and includes editorial photography coverage of the Television Craft Awards, Games Awards, Television Awards, Young Game Designers Competition, Scotland Awards, Cymru Awards and Children’s Awards.

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Business

Amazon Profits Surge as Investment in Faster Shipping Pays Off

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Amazon Profits Surge as Investment in Faster Shipping Pays Off
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By Dominic Rushe

Amazon’s massive investment in faster shipping paid off for the tech company over the Christmas holidays with record sales and four times as many customers taking advantage of its free one-day shipping offer over the shopping season compared with last year.

Amazon is spending billions making one-day shipping the default for its Prime members and the gamble helped drive its revenues up over $87bn for the final quarter of 2019, or $29bn a month, compared with $72.4bn in the fourth quarter of 2018.

Profits increased to $3.3bn in the fourth quarter, up from $3bn in the same period last year, after a fall of 25% from July to September due to its costly shipping investments. Amazon’s shares shot up over 10% in after-hours trading.

“We’ve made Prime delivery faster – the number of items delivered to US customers with Prime’s free one-day and same-day delivery more than quadrupled this quarter compared to last year,” said Jeff Bezos, Amazon founder and CEO.

Amazon’s bumper Christmas – the best in its history – came as other retailers including Target, Macy’s and JC Penney have reported lower sales.

Amazon Web Services (AWS), its cloud computing business, reported revenues of $9.9bn for the quarter, up 34% from the year-ago period.

Amazon also gave an update on its number of Prime subscribers, who pay an annual fee for faster shipping and access to free content on its streaming media services. Bezos said the company now has over 150 million paid Prime members around the world, up from 100 million last April.

Amazon’s share price has lagged its tech giant peers in recent months as investors have worried about its spending. The latest results push the company back into the exclusive club of tech companies now valued at over $1tn including Apple, Alphabet and Microsoft.

Copyright © 2020 theguardian.com. All rights reserved.

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