World Currencies

Concept of currency:

1. country's monetary unit and its type (golden, silver, paper);
2. foreign countries banknotes as well as credit and payment instruments expressed in foreign monetary units (bills of exchange, cheques etc.) and used in international payments.

Currency types:

1. fully convertible currency has no restrictions on any financial transactions for both residents as well as non-residents and may be exchanged for any foreign currency (the US dollar, Canadian dollar, Swiss franc, etc.);

2. partially convertible currency has restrictions on certain foreign exchange transactionsas well as restrictions for non-residents. Partially convertible currencies are those of the majority of Western European countries (Great Britain, France, Italy, Belgium, the Netherlands, Sweden, Denmark, Norway, Finland and Austria). After abolishing in December 1958 foreign exchange restrictions for non-residents, it became possible for them to convert any amount of money in bank accounts into US dollars or other currencies;

3. inconvertible (weak) currency has restrictions on currency transactions for residents as well as for non-residents. This group consists of currencies of dependent and developing countries, which are pegged to the parent states? currencies. Weak currencies rates are set at levels profitable for foreign monopolies.

Forex history

Since 1867 the "gold standard" has been in use to allow a national currency to be exchanged only for gold in order to "return" money and prevent governments from arbitrary emission, which accelerates inflation. But this "standard" was not able to solve all problems.
The country's growing economy led to the import increase to the point where gold resources were depleted. As a consequence, the amount of money in circulation decreased, interest rates grew and economic activity slowed down to the stage of recession. Then prices usually fell and other countries started to import cheap goods which led to an increase in gold reserves, monetary growth, lower interest rates and overall strengthening of the economy of the initial country. Most countries had been developing according to this "boom-bust" model before World War I, which interrupted the flow of commerce and gold.
After World War II and until 1971 there existed the so-called Bretton Woods agreement under which exchange rates of national currencies were fixed to the dollar, and the dollar itself was pegged to gold with the price per ounce set equal to 35 dollars. It was prohibited for countries participating in the agreement to conduct devaluation in order to improve the exchange rate of its currency.
Post-war reconstruction of the global economy and the increase in trade between the countries demanded a reconsideration of the fixed rate, and in 1971 the Agreement was "temporarily" suspended. Then the history of Forex began. By 1973, currencies of the most developed nations were freely convertible, and their exchange rates were mainly defined by supply and demand. During the 1970s volatility and turnover increased, new financial instruments appeared, and currency trading began to attract venturers.

Forex Vs Stock

Forex (Foreign exchange market) is an inter-bank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating ones. This is a set of transactions among forex market agents involving exchange of specified sums of money in a currency unit of any given nation for currency of another nation at an agreed rate as of any specified date. During exchange, the exchange rate of one currency to another currency is determined simply: by supply and demand – exchange to which both parties agree.A stock market, or (equity market), is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.Stocks are usually arbitrary pieces of a company that the board of directors issues to the public so that ownership of the company is distributed among everyone with a piece of stock.The performance of a company’s stock is directly related to the performance of that company greater profits generated by the company translate into higher stock prices. Stocks can be sold off to make a profit or held for future gains.

Canadian Dollar Hurt by Economy, Politics

Having fallen well below parity with the USD, the Canadian Loonie is now being attacked on two fronts. First, there is the deteriorating economic situation. Prices for virtually all commodities, namely oil, have declined significantly this year, dealing a harsh blow to the natural resource-dependent Canadian economy. In addition, its largest trade partner, the US, is suffering from economic woes of its own and is in no position to support the Canadian export sector. The result is surging unemployment and the most precipitous decline in factory production in 25 years. The most optimistic economists are forecasting GDP growth of 0.0% in 2009. The second prong of the attack against the Loonie is being waged unintentionally by the country's Prime Minister, who recently suspended Parliament in order to avoid a no-confidence vote in his leadership. In short, bulls for the Canadian Dollar (not to mention democracy) don't have much to be excited about these days. Bloomberg News reports:
"The global backdrop is bearish for the Canadian dollar and domestic numbers are merely piling on,"said a senior currency strategist. "No one is looking for reasons to buy the Canadian dollar right now. They want reasons to sell."

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FOREX-US dollar rises as jobs data dulls market optimism - Reuters

FOREX -US dollar rises as jobs data dulls market optimism Reuters By Steven C. Johnson NEW YORK, April 3 (Reuters) - The US dollar rose against most currencies on Friday as data showed the United States continued to hemorrhage jobs in March, dulling recent hopes of a nascent recovery and enhancing the greenback's …

Foreign Exchange Rates (03 April 2009)

Buying and selling prices of USD, Euro and British Pound in Istanbul and Ankara at 9:30 a.m. on Friday are as follows (in TL):
ISTANBUL Buying Selling
USD 1.6000 1.6050
Euro 2.1450 2.1500
British Pound 2.3350 2.3450

ANKARA
USD 1.5960 1.6140
Euro 2.1400 2.1680
British Pound 2.3270 2.3810