What do currency exchange rates mean

Description: Such practices can be resorted to by a government in times of economic or political uncertainty or even to portray an assertive stance misusing its independence. A government can resort to such practices by easily altering.

A recession is a situation of declining economic activity. Declining economic activity is characterized by falling output and employment levels. Generally, when an economy continues to suffer recession for two or more quarters, it is called depression.

Description: The level of productivity in an economy falls significantly during a d. It is always measured in percentage terms. Description: With the consumption behavior being related, the change in the price of a related good leads to a change in the demand of another good. Related goods are of two kinds, i. Description: Apart from Cash Reserve Ratio CRR , banks have to maintain a stipulated proportion of their net demand and time liabilities in the form of liquid assets like cash, gold and unencumbered securities.

Treasury bills, dated securities issued under market borrowing programme. In the world of finance, comparison of economic data is of immense importance in order to ascertain the growth and performance of a compan. Description: Institutional investment is defined to be the investment done by institutions or organizations such as banks, insurance companies, mutual fund houses, etc in the financial or real assets of a country.

Simply state. Marginal standing facility MSF is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely. Description: Banks borrow from the central bank by pledging government securities at a rate higher than the repo rate under liquidity adjustment facility or LAF in short. The MSF rate is pegged basis points or a percentage. Description: If the prices of goods and services do not include the cost of negative externalities or the cost of harmful effects they have on the environment, people might misuse them and use them in large quantities without thinking about their ill effects on the env.

It is an indicator of the efficiency with which a company is deploying its assets to produce the revenue.

Asset turnover ratio can be different fro. Choose your reason below and click on the Report button. This will alert our moderators to take action. Nifty 18, The Brazilian real tumbled against the U. Read more. The Nigerian naira dropped to a new record low of NGN Major Economies. South-Eastern Europe. Sub-Saharan Africa. Central America.

Monetary and Financial Sector. Precious Metals. Region Reports. Country Reports. Annual Subscriptions. Exchange Rate vs USD An exchange rate between two currencies is the rate at which one currency can be exchanged for another. Exchange Rate Data Albania This reduced bank rates for anyone lending or saving in euros. That reduced the value of the currency itself. The ECB announced its version of quantitative easing in March Yet, the euro is special. It's the second most popular currency after the dollar.

More than million people use it as their sole currency. It's one of the largest economies in the world. Interest rates, money supply, and financial stability all affect currency exchange rates.

Because of these factors, the demand for a country's currency depends on what is happening in that country. First, the interest rate paid by a country's central bank is a big factor. The higher interest rate makes that currency more valuable. Investors will exchange their currency for the higher-paying one. They then save it in that country's bank to receive the higher interest rate. Second, is the money supply that's created by the country's central bank. If the government prints too much currency, then there's too much of it chasing too few goods.

Currency holders will bid up the prices of goods and services. That creates inflation. If way too much money is printed, it causes hyperinflation. Hyperinflation usually only happens when a country must pay off war debts. It's the most extreme type of inflation. Some cash holders will invest overseas where there isn't inflation, but they'll find that there isn't as much demand for their currency since there's so much of it. That's why inflation can push the value of a currency down.

Third, a country's economic growth and financial stability impact its currency exchange rates. If the country has a strong, growing economy, then investors will buy its goods and services. They'll need more of its currency to do so. If the financial stability looks bad, they will be less willing to invest in that country. They want to be sure they will get paid back if they hold government bonds in that currency.

If you're traveling overseas to another country that uses a different currency, you must plan for exchange rate values. When the U. If the U. Since the exchange rate varies, you might find the cost of your trip has changed since you started planning it. You can search online to find the exchange rate of the U. Google has a tool to help with this. It even shows a chart revealing whether the dollar is strengthening or weakening.

If it's strengthening, you can wait until right before your trip to buy your currency. Check to see if your credit card company charges conversion fees. If not, then using your credit card overseas will get you the cheapest exchange rate.