Foreign Currency Market

Foreign currencies


h1 Martes, Mayo 6th, 2008

Money is the blood of the economy, is the way of doing all the transactions. During the years, the control have moved from hand to hand, and some foreign currencies have been more important than others and have last many years.
Actually the strongest foreign currencies in the world are the dollar and the euro, today almost 67 % of all the reserves of central banks are in dollars. Gold is simply a little part and euros a 15%.
Until the creation of the dollar there was no theorical rival of the dollar, regarding to its function of reserve, the actual situation of foreign currencies is not the same as 50 years ago where dollar was the most important currency. Most of foreign currencies have been appreciated lately regarding the dollar.
Many economists agree that dollar devaluation and commercial deficit increase of the United States are the base where economy is supported, even if this situation is taking some problems, and some countries have had the idea of diversifying their reserves in dollars so that they don’t continue falling.
Today countries that are members of the OPEP (Crude Exporters Countries), think about the possibility of exchanging the foreign currency dollar as a way to obtain crude, per other stronger foreign currency. Who appears in scene to take the place of the dollar is the euro, that has been appreciated over the American currency. If this happen, it would be the end of United States’hegemony, even if this country has been based on two bases, one is a strong foreign currrency and the second one is its militar power as a way of having control over other nations.

The relevance of the pound


h1 Domingo, Marzo 16th, 2008

Dollar seems to be the measure of all the exchangable goods, during the years it has gained ground, even if this expansion has been reduced since the appearance of the euro in 1999.
In Great Britain there is a currency, the pound, that still has value in front of crisis and important changes that have suffered the world economy in the last fifty years.
The name of the foreign currency pound, appeared in the 8th century. The term pound and sterling pound appeared in the Anglo-Saxon Great Britain, when a reform transformed the principal currency, called sterling in a new foreign currency, sterling pound, that was equal to 240 sterlings.
The foreign currency pound was born related to the Silver Standard and was replaced by the gold in 1717. The symbol that represents the foreign currency pound is £ and actually even if there are some currencies that have a better position, the foreign currency pound is still one of the principal foreign currencies used in the world.
As the euro, the foreign currency pound keeps an influence zone called sterling area and it is about those countries that were part of the British empire or are members of the Commonwealth.