Essays Tagged: "Australian dollar"
Boom and Bust: Financial Deregulation and the East Asian Financial Crisis of 1997/1998
atriated, a less favourable exchange rate may apply. *For example, if the exchange rate between the Australian Dollar and the Yen is one to one, I will spend AUD 1 million to receive YEN 1 million. Ho ... pend AUD 1 million to receive YEN 1 million. However, when I have to repay, if the Yen is worth two Australian Dollars, I will have to pay the equivalent of AUD 2 million in return.Provided that I inv ...
Subjects: Businesss Research Papers > Markets & Exchanges
Money: what is it worth to you?
ou don't notice the intricate details - do you understand what is meant by the strengthening of the Australian dollar? What about the prices of shares? Do you really know what all those bank fees and ... are the rates that you exchange your money for to get a different currency. A strengthening of the Australian dollar means that you can buy more of other currencies for each Australian dollar you hav ...
Subjects: Businesss Research Papers > Markets & Exchanges
Decribe what and how the FOREX market works in Australia
e Foreign Exchange Market is the buying and selling of various currencies. The exchange rate of the Australian dollar is the price of 1 unit (1 dollar) expressed in terms of another currency. The 2 mo ... The trade-weighted index (TWI)The measure against the US dollar is important because trading of the Australian dollar in the Forex market is highly concentrated against the US dollar.The measure of th ...
Subjects: Social Science Essays > Political Science
Why the balance of payments and the current account deficit are so important.
the world. The balance of payments may give an explanation for, as an example, why the value of the Australian dollar has appreciated. A current account deficit occurs when the current account does no ... nt account.The balance of payments may give reasons for economic occurrences. As an example, if the Australian Dollar falls in value, the balance of payments may give an answer for why it has happened ...
Subjects: Social Science Essays > Economics
The causes of current account deficit.
s been maintained investment cycled have also been a key diver of short-term instability in the CAD.Australian's needs to spend more on investment and all Australian's save is the cause of the current ... rrent account deficit. The investment projects have created jobs, increased living standard for all Australians and have helped generate the income necessary to make payment in the imported foreign ca ...
Subjects: Social Science Essays > Economics > Economic History
Austrlia - Balance of Payments and the pressure on the dollar
omestic product (GDP). Over the next five years, the comparison proved itself to be accurate as the Australian dollar lost over 40% of its value. Currently, there are signs that an even larger problem ... ed levels and led to unrealistic expectations.Why Look at the Balance of Payments?As we look at the Australian economy, we need to consider the balance of payments. The current account and the capital ...
Subjects: Businesss Research Papers > Markets & Exchanges
Drought and the Australian Economy-
Drought and the Australian Economy-2002/03IntroductionAustralia's economic performance was mixed during the drought. ... performance was mixed during the drought. Some parts of the economy expanded due to the competitive Australian dollar and other parts where effected due to the severe drought and other world issues in ... ism uncertainties and tourism down turn.The following are some negative and positive effects on the Australian economy during the recent drought period.Negative EffectsGrain production was reduced by ...
Subjects: Social Science Essays > Economics
FACTORS AFFECTING SUPPLY AND DEMAND OF AUSTRALIAN DOLLARS
changes in the equilibrium exchange rate. Another factor, which can affect the supply and demand of Australian dollars, is intervention in the market by the Reserve Bank of Australia.DEMANDThe demand ... exports of goods and services and its assets.In simple terms, people who may have a demand for the Australian dollar could include:Foreigners wanting to purchase Australian exportsInternational touri ...
Subjects: Businesss Research Papers > Markets & Exchanges
Should Australia return to a fixed exchange rate, rather than a floating currency exchange system? (oral presentation)
Since the inception of a floating currency exchange rate system, the Australian dollar has declined by over 30% and as a result many economist have warranted the return ... eign exchange market. For example, the diagram above we see the effects of a rise in demand for the Australian dollar, causing an appreciation in its value.On the other hand, a fixed exchange rate, is ... ncies and acted each day to clear the foreign exchange market of any excess demand for or supply of Australian dollars, thus allowing the dollar to stay at a fixed rate.A free floating exchange rate a ...
Subjects: Social Science Essays > Economics > Foreign & International Economics
Australia's Exchange Rates and the effects from global events
te is determined by the market forces of supply and demand. This system means that the price of the Australian dollar is normally decided in the foreign exchange market by overseas currency buyers (de ... r currency because it cuts demand for our exports. This can cause imbalances and volatility for the Australian currency in conjunction to the troubled country Acts of war and terrorism have maj ...
Subjects: Businesss Research Papers > Markets & Exchanges
Overview of the Reserve Bank of Australia
ward looking.Thirdly, the RBA can exercise its control over the exchange rate, and the value of the Australian dollar. In simple terms, the RBA can increase interest rates to increase the value of the ... ity over the issuing of bank notes. Its jobs include the issuing, reissuing and cancellation of all Australian banknotes in circulation. It works through a number of departments including the Note Iss ...
Subjects: Social Science Essays > Economics
Australia and its exchange rate
ermine the exchange rate price, although the Reserve Bank can, and has so in the past 'managed' the Australian exchange rate in order to smooth out large fluctuations in the value of the AUD. There ar ... ether the AUD appreciates against other currencies or depreciates will determine the effects on the Australian economy and how well it performs in relation to other nations in the global economy.The v ...
Subjects: Social Science Essays > Economics
Amcor - Case Study
lidate its position so as to improve its financial viability. This can be owed to the fact that the Australian dollar appreciated against US and Euro currencies. As a result the profits have reduced a ... ure. This is because the assets, liabilities and earnings acquired are in currencies other than the Australian dollar. These are exposed to exchange rate fluctuations and it can't be effectively neutr ...
Subjects: Businesss Research Papers > Case Studies
How exchange rates are determined and their impact on the Australian economy
The Exchange rate is the price of the Australian Dollar expressed in terms of another currency. The two most common measures of the exchan ... n, the British pound and the euro.Over the closing decade of the twentieth century the value of the Australian dollar ($A) generally declined against the major currencies (US dollar, UK pound, and Jap ... Reserve Bank of Australia (RBA) - Government interventionWhen the RBA intervenes, it buys or sells Australian dollars against another currency, almost always the US dollar. To support the exchange ra ...
Subjects: Social Science Essays > Economics > Rates & Indexes
RBA
ined in the Reserve Bank Act 1959. It has three main objectives, which include the stability of the Australian currency, the maintenance of full employment and the economic prosperity and welfare of t ... Bank. It is action taken by the RBA in order to influence the cost and availability of money in the Australian economy through influencing the general level of interest rates. The RBA meets every mont ...
Subjects: Social Science Essays > Economics
Commerce - Foreign Debt
ternational assets (what the rest of the world owes us). Recently in December 2005 - February 2006, Australian net foreign debt has risen to $472.823 billion, growing 5 percent.During the same period ... igures from the Reserve Bank of Australia show that foreign debt is proving to be a problem for the Australian economy. Foreign debt is ever increasing and this debt is a growth constraint for the Aus ...
Subjects: Social Science Essays > Economics
Monetary Policy In Australia
the RBA is very interested in the theoretical concept of the NAIRU.2.The economic prosperity of all Australians: Closely related to the first point, in this instance the RBA is pursuing a certain stan ... lated to the first point, in this instance the RBA is pursuing a certain standard of living for all Australians. This has been interpreted to mean that not only should they have a job, they should als ...
Subjects: Social Science Essays > Economics
A report on the hedging strategy of CITIC Pacific Limited
nto foreign exchange forward contracts. However, CITIC Pacific has chosen Accumulator contract with Australian dollar as target. That is to say, CITIC Pacific has the right to purchase Australian doll ... o purchase Australian dollar with a discount when it's appreciating but there is an upper limit; if Australian dollar depreciates in the period stipulated in the contract, CITIC Pacific has to buy it ...
Subjects: Social Science Essays > Economics
Major domestic & international events impact the value of the Australian Dollar
Good morning...Today I will be talking about the fluctuations in the Australian dollar by some of the major domestic and international events.'The Australian dollar is t ... ld foreign exchange markets, accounting for over 6% of worldwide foreign-exchange transactions. The Australian dollar is a commodity dominated currency and is popular with currency traders due to high ... commodity super cycle.'Increase in globalisation and the dollar becoming free floating, has led the Australian dollar to been heavily influenced by international factors. These include overseas intere ...
Subjects: Social Science Essays > Economics > Foreign & International Economics
Risk Management and The Foreign Exchange Market
rate is the rate of one currency in terms of another.For example:AUD/USD = .6230which means that 1 Australian dollar will buy 62.30 US cents. In this example AUD is the commodity or unit currency, an ... cash flow mismatches.FX Swaps - worked example:Consider a US parent company that wants to lend its Australian subsidiary cash for which it has no immediate use (ie the parent has a short-run surplus ...
Subjects: Social Science Essays > Economics > Rates & Indexes