came under vicious attack and had to be devalued by about 90% over the period of just a few months. Interest rates were rising sharply, as capital flight from Indonesia was accelerating a complete collapse in the financial as well as the political system in that country. The Asian Crisis also has brought down South Korea, just like Indonesia and Thailand, has gone almost bankrupt as a nation and is receiving financial assistance from the International Monetary Fund and other major countries.
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Rupee Depreciation and Impact on the Economy (Dr. Nikhil Saket, Senior Assistant Secretary, ICAI, New Delhi) Introduction Depreciation refers to a fall in the value of the domestic currency which is caused by the demand for foreign currency exceeding its supply in the market. In such a situation one has to pay more than before to get units of foreign currency. This fall takes place in the market and on its own. Market determined exchange rate serves the purpose of aligning the domestic economy with
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GOLD TRADING SUMMARY: Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crises. The gold market is subject to speculation as are other markets, especially through the use of futures contracts and derivatives. Gold price has shown a long term correlation with the price of crude oil. Indian measures to discourage gold imports is shutting the door on top exporter Dubai, where
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Knowledge of international finance can help a financial manager decide how international events will affect a firm and what steps can be taken to exploit positive developments and insulate the firm from harmful ones. Among the events that affect the firm and that must be managed are changes in exchange rates as well as interest rates, inflation rates, and asset values. These different changes are themselves related. For example, declining exchange rates tend to be associated with relativelyhigh
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IMPACT OF OIL TRADE ON EXCHANGE RATE OF INDIA Introduction India in the 21st century is one of the fastest growing countries of the world. Oil being the bloodline of the growing economy, is a necessary commodity and has a very inelastic demand, steadily growing with time. In 2011, India was the fourth largest energy consumer in the world after the United States, China, and Russia. India's economy grew at an annual rate of approximately 7 percent since 2000 and proved relatively resilient to the
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Summary Kohl’s Corporation currently does not do business in India. Kohl has opened their first store in Brookfield, Wisconsin back in 1962. Today Kohl’s operates approximately 1,160 family-oriented department stores in the United States and is now trying to establish its business in India. According to Kohl’s .com Investor relations, the company is involved in retail trading of merchandise in different forms. The company position is between the higher-end department stores and the discounters
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dollars for dong. On February 14, the State Bank announced that it has been buying foreign currencies, while the current favorable conditions have been facilitating the purchases. The bank said that the foreign currency liquidity of the banking system has improved since January 2012, while banks have sold more foreign
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China Yuan Affect on the United States and a Dollar The United States dollar is listed as one of the top ten most sought-after currencies in the world. Over the last century, the U.S. dollar has begun to depreciate in the trading industry, which has enabled China's yuan to gain a higher percentage in exchange rate. In June 2010, China adapted an enhanced more flexible exchange rate policy. After the policy was introduced the yuan value rose 0.8 over the United States dollar. The exchange policy
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Question 1 Provide short answers to the following: (a) Explain in detail the process whereby banks create money. 1. Banks have excess reserves 2. Banks lend excess reserves 3. The quantity of money increases. 4. New money is used to make payments. 5. Some of the new money remains on deposit. 6. Some of the new money is a currency drain 7. Desired reserves increase because deposits have increased 8. Excess reserves decrease. (b) What factors constrain the ability
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International Trade and Finance Speech By: Cleveland Ivery Class: ECO/372 Version 4 Date: 11/23/2013 Instructor: Spyridon Patton Good afternoon ladies and gentlemen of the house. I would like to thank you for the opportunity to speak to you today on such an important topic of
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