Insights into Economics - Assignment 2 by https://padlet.com/isiah_gibson/5qn2r1nb57v Foreign Exchange Rates en-us 2018-10-27 03:30:38 UTC 2023-02-03 05:29:15 UTC hello@padlet.com It's all about Foreign Exchange Rates by Isiah Gibson isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/297609225 2018-10-27 03:42:12 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/297609225 Welcome to my Foreign Exchange Rate Padlet isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/297609239 Within the posts on this padlet wall I will be exploring the  topic of Foreign Exchange Rates especially in the Canadian context.. 
By the end of your visit ,I hope that you would have an understanding of  the following:

Exchange rates, and  how they work, factors which influence  exchange rates and developments in the foreign exchange market.

I hope that you would understand how foreign  exchange rates affect you and how your choices can affect foreign exchange rates.



]]> 2018-10-27 03:42:37 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/297609239 The Bank of Canada and exchange rates isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/297609431 The Bank of Canada is the nation's central bank whose stated role is "to promote the economic and financial welfare of Canada".
On March 01, 2017 the bank made a changein its policy of publishing daily exchange rates. The Bank decided to list only twenty six currencies which conducted frequent transactions against the Canadian dollar.  It went further to limit the publication of these rates to a single daily figure for each currency.
One of the things which I learned is that the Bank does not position itself as the provider of rates for transactional purposes.  Prior to this I was of the belief that the Bank would be the entity which regulated these rates. The article below gives an informative overview of how this policy evolved in light of developments such as the emergence of other trading platforms and open access to information via the internet

]]> 2018-10-27 03:46:04 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/297609431 Foreign exchange rates and factors which influence them isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/299202423 An exchange rate is the price of a nation's currency in term of another currency. An exchange rate has two components: the domestic currency and the foreign currency. which can be quoted directly or indirectly. 

In other words, the foreign exchange rate determines the value at which one country's currency converts into another country's currency. It is important to note that it is also one of the key indicators of a country's relative economic strength.
This article looks at the relationship between the Canadian and U.S currencies over the past ten years. It goes further by looking at specific factors which influence each of the two counties.
How do we respond to changes in the exchange rate? Example: If  the Canadian dollar is stronger , Canadians may tend to travel or shop outside of the country because of the increase in spending power.

Some of the factors include:
The rate of inflation
Interest rates
Balance of payments
Government debt
Political stability and performance

From reading this article I have come to understand what a strong influence the cross currency rate has on the economic and business climate in both countries. It made me realise how important it is for us to pay attention to what is happening in the business, political and economic affairs of countries with whom we have relations.
]]> 2018-10-31 23:28:37 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/299202423 Foreign exchange and immigration isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/299211989 This video gives a practical example of one of the areas that foreign exchange rates has an impact . Canada has been known to have a comparatively open immigration policy. A significant amount of persons living in Canada are foreign-born. 
Have we ever stopped to think about the cost which immigrants are willing to pay for the benefits of what they perceive as a better life? Based on the cross currency rate between Canada and their home country, migration can represent a significant investment for the individual. We all know or have met someone who migrated to Canada .However, we may have never given a thought to The role that foreign exchange played n the process..

This is an area which I took an interest in as someone who would consider living and working in Canada to acquire work experience in my field of study.

 ]]> 2018-11-01 00:52:16 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/299211989 History of the Canadian dollar isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/302362331 It is so easy for us to conduct transactions today especially when we pay with cash. Did you think that there was a time when money bills did not exist? There is an interesting story behind the introduction of the Canadian currency which we use daily.

Being born in an era where money bills and coins are the accepted mode of trading, I never imagined that the Canadian dollar was not the original currency of this nation.  I have discovered that in the early 1700's gold coins were used for trading before the Canadian pound was introduced.

What is even more interesting is that different provinces used their own dollar until a unified currency was accepted in 1949. Today the currency consists of polymer bills and coins. 

Can you imagine what it would be like today if each province  had retained its own currency in light of increased travel and trade?  This would certainly bring a complicated twist to the foreign exchange currency market.




]]> 2018-11-08 22:39:21 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/302362331 Recent developments in the foreign exchange market isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/306588165 On September 30, 2018 The U.S.A, Canada and Mexico came to a new agreement to update the NAFTA agreement.Although the new deal does not go into effect immediately, there has been a response already in the foreign exchange market. According to this video the Canadian dollar has soared to a U.S . 78 cents rate.
The producer explains how one of the provisions can bring benefits to Canadian cross border shopping. This provision will increase the duty free allowance from fifty U.S. dollars to one hundred and fifty U.S dollars.
Based on this we can expect that cross border travel and shopping will increase.  While this is good news for us consumers, it can prove detrimental to Canadian retailers.
This has impressed upon me that economics is more than just a theoretical science. It is involved in our everyday individual decisions such as choosing to purchase cheaper foreign goods.


]]> 2018-11-21 02:33:44 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/306588165 Some things you may need to know isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/307358195 By now we may have accepted that foreign exchange fees are unavoidable .It  may not matter to persons who plan an occasional vacation outside of their country. This article discusses the topic of  the cost of foreign exchange transactions for persons who need to exchange currency frequently. It also offers valuable advise on how those costs can be minimized.

Did you know that apart from the exchange rate that there are other costs which you may pay? I will explain two of them:
1. Spread- This  is the profit which the bank of foreign exchange company adds to your cost
2.Fees- This can be a flat rate or percentage fee .

As a recent user of an international credit card and foreign exchange services I have found the information about the additional fees enlightening. I am now able to fully understand why the amount of money I receive is invariably less than my calculations based on the quoted daily rate.

For tips on how to minimize your costs, I invite you to follow the link


]]> 2018-11-24 03:26:39 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/307358195 Forex Training isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/307454105  A simple google search can generate up to two million entities offering 'Forex Training Courses. In my research I have discoverd that here are two main categories of training.
In choosing a training course one should do some research and look for things such as the reputation of the entity, certification and time and costs involved.
One valuable lesson I have learned from surveying this topic is to be wary of claims from trainers who guarantee instant and tremendous profits.


]]> 2018-11-25 02:49:16 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/307454105 Forex Trading isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/309732059
Forex ,FX  or currency trading is a global decentralized market  which involves buying or selling currency for profit off changes in its value. At the moment it is largest and most liquid market in the world.
For someone who does not have any understanding of this area, the video gives a basic definition and an explanation of some of the key terms we may have been hearing. This video is presented by InstaForex, a company which acts as a broker or financial advisor to the investor.
I have learned the meaning of key terms such as :currency pair, platform and trading accounts.
The one thing that has impacted me -understanding that careful choice of a broker is more valuable than the amount of money you have to invest. 
In addition to this video, I invite you to take a look at my post on "Protection in the Forex Market"

]]> 2018-11-30 12:42:19 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/309732059 Protection in the Forex market isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/309799025 In recognising that the forex market could be unpredictable, the players in the investment industry created the Canadian Investment Protection Fund in 1969.  
This organisation plays a critical role in Canada's financial system by providing protection for investors who have accounts with its registered members. In the event that the investment broker becomes bankrupt, the investor has recourse to recover his/her property.
The lesson for me or anyone thinking of entering this market is to check that the dealer is a registered member of CIPF.
I invite you to look at the attached brochure for further guidance

]]> 2018-11-30 14:59:32 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/309799025 Reflections isiah_gibson https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/309917366 2018-11-30 18:32:44 UTC https://padlet.com/isiah_gibson/5qn2r1nb57v/wish/309917366