We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

How have goverment policies affected the exchange rate over the period 2012/13 - Essay Example

Comments (0)
Summary
The United Kingdom runs with a system of floating exchange rate where daily worth of one currency against other is ascertained by the market…
Download full paper
GRAB THE BEST PAPER
How have goverment policies affected the exchange rate over the period 2012/13
Read TextPreview

Extract of sample
How have goverment policies affected the exchange rate over the period 2012/13

Download file to see previous pages... Being a financial benchmark that permits divergent interpretations, it also entails some emotional luggage. Strong sterling is considered as a pride by some constituencies as it indicates the virility of British economy. Governments and financial authorities on the other hand are more interested in ensuring a weaker pound sterling as it helps in boosting the exports and attaining a balanced economy. Besides, the pound is rated against the euro and dollar and is progressively determined by the rate of euro-dollar instead of domestic economic updates (Lowery, 2012).
The UK economy has been found to be contracted and didn’t show growth during the last year. The sterling has been seen to lose nearly 5-6% of its worth against the euro and dollar during the January. This weaker sterling flows to businesses through elevated import costs, predominantly of raw materials (PwC, 2013).
The exchange rate outlook is evident in the above figure (RBS Group, 2013). Uncertainty within the market is a precursor of unpredictable fluctuations in the exchange rates. The management of exchange rates is a part of the monetary policy adopted by a country and the declined value of Sterling indicates that the government is interested in increasing exports and most of the businesses seem to be unaffected by the weakened sterling that may result in increased costs in importing raw materials (PwC, 2013). The major business entities within the country obtain the required raw material by building alliances.
Lowery, A. (2012). Sterling outlook: where is the pound heading against the euro and dollar? This is money. Available at: http://www.thisismoney.co.uk/money/news/article-1652304/Sterling-outlook-What-pound.html[Accessed 17 Mar 2013]
PwC. Co. (2013). The impact of recent exchange rate movements on UK businesses. Available at: ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Foreign Exchange Market and Forward Exchange Rate
Sometimes anticipatory buying of the foreign currency drives the market. Anticipation can destabilise Foreign Exchange Markets. This is because the participants tend exchange their national currency more or less depending on the expected exchange rates.
9 Pages(2250 words)Essay
Over 2012/13, to what extent was the output gap a cause for concern
The output gap is calculated by subtracting the potential GDP from actual GDP which may result in a positive output gap as well as a negative output gap. Since the potential output cannot have a definite value and is only based upon the historical data and market conditions, the output gap is always an estimate.
4 Pages(1000 words)Essay
Floating Exchange Rate
A floating exchange rate, also called s flexible exchange rate is "a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market" (Wikimedia Foundation, Inc). In the field of economics, we say that it is "determined by the private market through supply and demand" (Investopedia).
5 Pages(1250 words)Essay
Analyze what a country must consider regarding the major issues of monetary and exchange rate policies
Monetary policy is a set of guidelines established and applied by the government to have control over the market economy and other economic activities in terms of the pace, the direction and the rate of the
3 Pages(750 words)Essay
1.how has unemployment affected the economy over the last four yeasr. 2.Have unemployment rate increased or decreased over the last four years
However we can as well blame this on the population increase but all the same it is because of poor planning. Population can not be an issue of concern if birth rate is being controlled. Over the past four years the issue of unemployment has affected America and the world at
1 Pages(250 words)Research Paper
Exchange Rate Policies
China is the largest trading partner of the U.S. and it has successfully managed the exchange rate of its currency to their advantage. It would be worth contemplating the trade gap between these two countries in the last four years as
1 Pages(250 words)Essay
Using supply and demand analysis, examine how recent events over 2012/13 have affected short and long run price changes in commodity markets
Being a basic commodity, food has an inelastic demand. This implies that demand for food does not correspond to prices in the ordinary sense (Shaw 630). For instance, the prices of corn, wheat, soybeans rose by 4% within the last six months. However, demand for these
1 Pages(250 words)Essay
Examine how unemployment and inflation changed over the year 2012/13
Before discussing the changes, it is important to define what inflation and unemployment is. Inflation refers to increase in prices of goods and service over a certain period. Therefore, more money is required to purchase goods and service due to
1 Pages(250 words)Essay
Exchange Rate
In order for Kerr Inc. to mitigate the adverse fluctuations in the foreign exchange market, the company should manage the foreign exchange risk. The company can manage
1 Pages(250 words)Assignment
Currency Exchange Rate
The importance of flexibility in the exchange rate for easier correction of imbalances current account has long been at the heart of international debate. Before the financial crisis World, these debates were focused on global imbalances and the role of exchange rate policies several major Asian and oil-exporting countries with external surpluses.
16 Pages(4000 words)Essay
Let us find you another Essay on topic How have goverment policies affected the exchange rate over the period 2012/13 for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us