Current exchange rate:
1.00 USD | = | 0.734293 EUR |
Europe thought that by creating a universal monitary exchange they could avoid falling into a recession. Well that just isn't the case any more. The Euro is at an all time low against the dollar (see above exchange rate). Most of this is due to the debt that nations like (PIIGS) Porturgal, Italy, Ireland, Greece and Spain, that hold a large debt.
Do a little research for yourself and post at least 3 sentences about this topic. Some possible questions to answer would be:
- How does this effect the US economy?
- Will this effect the Dominican Republic?
- Will the EU keep using the Euro?
- Should the world adopt a universal currency?
- What are the pros and cons of a universal currency?
1. The euro-to-dollar rate has slid from $1.60 last summer to around $1.25 recently. I believe it will continue to sink lower in the future -- possibly all the way to dollar-parity ($1 = 1 euro).
ReplyDelete2. "Over just the past six months, Poland's zloty is down 28% against the euro, Hungary's forint has declined by 21%, Romania's leu by 18%, and the Czech koruna by 12%. At the same time, the euro itself is down sharply against the dollar, as the European Union's budget deficits are forecast to rise from 2% to 4.4%." Ivan Martchev
3. If you invest abroad, you must stay aware of how currency moves affect you. If you're not careful, they can often turn what would be a gain into a loss.
here in the dominican republic the euro is worth more than the dollar.still the dollar of the euro is not worth more than the dollar. but is true it has decreased the past 10 months...
ReplyDeletethank you
Ciro A.
The EURO was a "big relief" to some of the EU countries, and it provides an "unitary" form between the different countries. however, it must be noted that because of the current economic crisis occurred in the u.s., the euro was also affected--not the other way around. the euro had risen to create a big difference between the former said and the dollar, but now that the crisis has occurred, the euro NEEDS to go down, all of this are mechanisms to make economy work around the world, even if the currencies are different there must be a balance so to not cause a "problematic" situation. Why was the entire world affected by the economic crisis in the united states? because everything is interconnected so to make everything work like in a factory, if one machine gets ruined all the others resent it.
ReplyDeleteJessica
The exchange rate of Euro to US dollar has been lowering from the past 10 years as seen on the webpage:
ReplyDeletehttp://www.indexmundi.com/xrates/graph.aspx?c1=EUR&c2=USD&days=3650&lastday=20100227
It’s a great time to exchange money from dollar to euro.
Yes, it would affect the Dominican Republic economy during import and export items making it good the country. The problem is that we are based on the US dollar.
On the past 3 months the exchange rate of euro to us dollar: 1/13/2010 (0.69) to 2/12/2010 (0.7362)
The Euro is a good idea, however if one notices the UK is not part of it. If a strong country would unite with such a system, it would lose in some way. Why? Because it is a generalized system that does work for countries that are , in a way, vulnerable, yet it has , like everything, its disadvantages. For instance, some measures for Greece and Spain could have been done, however, their problems were different and therefore the ways used to fight against the fall of the Euro are not the same for the circumstances for every country. Do I think there should be a universal currency? No, for the same reasons above. Do I think there should be one for the DR? Not really, either. Probably if we grow to be one of the top ( higher than the 8th) developed countries in latin america. anyways, what we need now is capital where and how to get it is the question. IMF? :)
ReplyDeleteThe Euro was thought to be the best way to create a monetary system that would make the European Union grow strong and firm. Like a bond that made each country from the union stronger. But, because some of the countries of The EU grew weak the EU went threw a "Domino Effect" and all the weak countrys drop off with the other economically indebt!
ReplyDeleteThe World should and should not use a universal monetary system. It would help many countries that are in distress but it would also do an Universal clash and it wouldnt be favorable for other countries that are economically stable. Besides, if the "World" was thinking in doing one because of European Union being so strong, they wont think about it anymore...
Economists will find a more beneficial way to deal with the circumstances, I hope so!
Mara
ehh. The exchange rate of Euro-to-US dollar has been lowering..
ReplyDelete"Europe has a very cyclical economy. Germany, the biggest EU member, relies on exports -- its trade surplus is more than $300 billion -- which are drying up in the current global slowdown. Unemployment has been rising lately, too. All those wonderful places that had real-estate-booms-turned-real-estate-busts, such as Spain and Ireland, are also pulling the economy lower."
The introduction of a universal currency would eliminate the possibility of a catastrophic situation.
The universal currency would result in lots and lots of debt for many countries. The creation of a single currency would virtually eliminate all of these costs and allow a free flow of money. With the rapid evolution of the global marketplace over the last several decades and the immense need for international trade, nations must not only be confident in the strength of their own currency, but also in the strength of their trading partners’ currencies.
ReplyDeleteThe euro is a very strong currency eventhough it is struggling right now. It began to strengthen quickly at the biggining of march this past year but took a sudden change in the last months of the year. Right now the sterling is also struggling and it is a pretty strong currency too. This affects us in very minimum ways like in exporting goods and so on. The euro was an excellent move in the EU and it will continue to succeed.
ReplyDeleteI believe the euro did good for the european union. Its decline can affect our economy because there are some investors that work with Euros but for the most part it doesn't affect us. Finally, I believe that creating a universal currency would open economies worlwide to easier trading and negociations.
ReplyDelete