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Novak Djokovic ( P Slide)
 

Novak Djokovic ( P Slide)

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    Novak Djokovic ( P Slide) Novak Djokovic ( P Slide) Presentation Transcript

    • THE FLUCTUATIONS OF USDOLLAR & ITS EFFECTSTOWARDS THE WORLDECONOMY NAME MATRIC NO. LIM SHI YING (LEADER) BG 0911 0373 LEE KIT YI BG 0911 0329 LIM WOON SIN BG 0911 0374 SHALANI D/O NADARAJAH BG 0911 0278 TAI SIANG YING BG 0911 0111 TANG HWEE PING BG 0911 0093
    • INTRODUCTION significant dominant currency roughly two thirds of all official US DOLLAR exchange reserves denominated in more than four-fifths of all foreign exchange transactions lead the purchasing power of US consumers Mid -2009 , began to turn down again
    • OBJECTIVES To investigate the factors that influence the US dollar. To determine the impact of the US dollar fluctuation towards the world economy, and the countries that have been affected the most. To evaluate the policy that has been implementing to the fluctuations of US dollar.
    • FACTORS INFLUENCE U.S. DOLLAR Trade deficits downward pressure dollar value Housing bubble speculation in house value Size and liquidity of U.S asset markets the foreign central bank increase foreign reserves Interest rate Treasuries declines, the investment is less attractive
    • CONTINUED… Currency peg weaker currency would peg itself Market psychology expected the future path of dollar Inflation purchasing power of currency Gold fundamentals dollar decrease, gold increase.
    • THE EFFECT OF US DOLLAR FLUCTUATIONSTOWARDS THE WORLD ECONOMY Gradually depreciation - rebalancing of the US current account deficit - strengthen domestic demand - broaden world economies Sharpen depreciation - Weak domestic demand - decline in export
    • CONTINUED…- lower growth in the countries who rely on export to US.- Lead to rising inflation Dollar appreciated - increase the purchasing power - increase import demand, stimulate exporter countries economy growth.
    • THE COUNTRIES HAVE BEENAFFECTED THE MOST The Economy of the Middle East The economic conditions in the United States The impact exchange rate is seen on oil demand and supply. Japan and China.
    • CONTINUED…. affects the output of the East Asian economies in both trade and foreign direct investment. Affects India’s economy. The value of total U.S trade with Africa had increased.
    • POLICY TO RESPONSE 1) Government direct intervention in the Foreign Exchange- Treasury buying or selling foreign exchange 2) Monetary policy- changes of interest rates
    • CONTINUED…. 3) Fiscal policy & Federal debt - Government’s spending and taxing 4) Lower foreign trade barriers -boost the demand for U.S. goods and services
    • CONCLUSION depreciation of U.S dollar value has great influences World economic effect Policy response Eurodollar