http://globalist.org.ua/eng/1441561-forecast-exchange-rate-of-dollar-and-euro
Summary:
This article is talking about the euro is continuously dropping. According to this article, it said that people are predicting euro will fall to its historic lows. This is due to various reasons, and one of them is because of Greece economic crisis. In addition, not just Greece, but in fact, the Southern Europe’s economy is not in a growth position. Euro exchanging rate is current experiencing a very difficult time, and currency experts believe that the euro is highly unstable and it will not go back up in a short period of time.
Connection:
Chapter 6 has mentioned about the risk in cash. Due to the exchanging rates, our money can be gold one day and a piece of useless paper on the next day. Fortunately, this will rarely happen because unlike stocks and other investments, the exchanging rates are not as fluctuated. However, this article proves the point that holding cash involve a risk. The price of the stocks is determined by the performance of the business; similarly, the exchanging rates depend on the economy of the places that use that currency. Since euro is use throughout Europe, so when one country’s economy goes down, it affects the whole Europe.
Personal Reflection:
Personally I believe that investing in currency is a great idea. Even though we cannot make a huge profit out of this investment; however, it still gives us a reasonable amount of return. More importantly, it will not have sudden growth or drops like stocks. Since the exchanging rates are usually depends on the economy of the country or the place that the currency that is used, it always gives the invest signs that it either will go up or down. Besides, everyone should have certain amount of saving in their bank account. Instead of letting those money sitting on the bank and getting the low interest, it would be way better if people are buying in other currency and make more money in that way.
1 comment:
Indeed cash is an extremely risky item to possess but its value can be great. I personally think that investing in different currencies is a good idea. One will have the option of selling their currencies when its value is high or keeping it when it's low. I think it is with such decisions can one earn a profit. It may not be a vast amount but it is still profit nonetheless. Since cash is so risky to keep, perhaps it would be a good idea to keep it in the bank. With this article, however, the currency of a country is going down keeping money in the bank will not exactly decrease its risk. Perhaps the government should simply stop producing more money. The more money in print, the less value it has.
Betty Chan
F.Acc12
1-2
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