Search Results for "value of the euro to the dollar over time"

May
19

Anatomy of the EU Economic Crisis

Posted by: | Comments (0)

The European Union (EU) economic crisis is regarded by many as the biggest challenge that the group has ever faced. Years ago, the euro, eu’s official currency, was hailed by many as the currency that will dethrone the dollar. However, as soon as the Greek economic tragedy came, currency speculators who used to rely on the euro, suddenly changed their minds and dumped their euro currency holdings. What exactly happened?

Let’s talk about what overvalued selling means in the context of the euro and the 2010 EU crisis.

Currencies exchange rates differ almost every day. They are quite freely dictated by market prices, i.e. Supply and demand. If the euros circulating in the world market lose demand, the euro loses value. There are many factors that affect this. However, in the context of the EU economic crisis, the main trigger is the burden that is Greece. Thus, everybody braced themselves for the plunge of the Euro as soon as news of the Greek debacle broke out.

Read More→

Incoming search terms:

Categories : Economy
Comments (0)
Mar
29

Euro and US Dollar Exchange Rate

Posted by: | Comments (0)

The Euro has come a long way since it entered into circulation on January 1st, 2002. It is now the official currency of 16 of the 27 member states of the European Union (EU) – with the notable exception of United Kingdom, and is consequently used daily by some 327 million Europeans.

Most experts in the Financial world thinks that the US Dollar will continue to depreciate against the Euro over time, with the Euro taking over US Dollar as the world’s undisputed reserve currency eventually. However, during the financial crisis that started in late 2008, many banks and companies became bankrupt and investors started to find solace in putting their money into stable foreign exchange, Gold and commodities. This became a boon to US dollar (and the Japanese Yen) and there was a sharp appreciation in the US Dollar against most of the world’s major currency – including the Euro.

China, Russia and India (major global investors in the US Dollar) have long indicated that they want to see changes in the international monetary system in the wake of the financial crisis. They are however, careful to not push their desire for change too far in case the dollar slumps. This will lead to the value of their HUGH dollar-denominated investments plummet, something that will not bode too well with their tax payers.

The main difference between the Euro and the US Dollar is time. US dollar has been around in circulation much longer, therefore it is deemed as more reliable. Fundamentally, the Euro is almost as stable as the US dollar now with the backing of the European Union, a coalition of European nations. The perception to the ability of Euro to withstand any financial/global/economic crisis will gradually improve over time. This is especially true as more countries and sovereign wealth funds (SWF) starts to buy into Euro as reserve.

Incoming search terms:

Categories : Economy
Comments (0)

Modern historiography specialists have long argued that an essential segment in the study of human evolution is inextricably tied to the basic understanding that societies generally emerge, progress and fall cyclically. Such frequency in social evolution is not just a consequence of endogenous factors, it also results from the impact of the external environment, be it close – neighboring constituencies vying for the same resources – or far – as part of a larger geographical area.

History teaches us another fundamental truth, predominantly unveiled in social sciences: humans are inherently prone to believing in the danger of the unknown, the fear that uncertainty – when present in life – brings an intolerable level of complexity in handling daily activities. Economists, in tandem with the larger group of social scientists, ascribe the word “risk” to this angst.

Risk lies in everyday life. From birth to death and in between the terrestrial episode called life, humans experience a sophisticated relationship with risk and utilize it as a powerful catalyst to furthering their interests. We fear the unknown not just in temporal terms – e.g.: what will tomorrow be? – but also in more practical, present-day terms, that is, what will happen today?

Read More→

Incoming search terms:

Categories : Economy
Comments (0)