Float it or fix it? Mr. Clifford expalins the difference between floating and fixed exchange rates and how countries peg the value of their currency to another currency. Make sure to watch this video first: https://www.youtube.com/watch?v=9DVYVfI81R8
Views: 276014 Jacob Clifford
Subscribe to our YouTube channel here: https://sc.mp/2kAfuvJ Since 1983, Hong Kong authorities have pegged the value of the city's currency to that of the US dollar at an exchange rate of roughly 7.8 to 1. We explain the reasoning for the peg.
Views: 5632 South China Morning Post
To understand how a country's currency might appreciate or depreciate, you must understand the variable that can affect demand or supply for the currency on the forex market. This lesson will introduce a useful acronym (TIPSY) for remembering the determinants of exchange rates, and evaluate the advantages and disadvantages of floating exchange rate systems. Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870
Views: 27841 Jason Welker
How the Chinese Central Bank could peg the Yuan to the dollar by printing Yuan and buying dollars (building up a dollar reserve). Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/currency-tutorial/v/chinese-central-bank-buying-treasuries?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/currency-tutorial/v/currency-effect-on-trade-review?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: This tutorial walks through how China's undervaluing of its currency impacts trade and prices (which also fuels cheap borrowing for the U.S.). About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 111167 Khan Academy
This revision video looks at fixed, managed floating and fixed exchange rates and considers some of the advantages / drawbacks of each choice of currency system. A Level Economics Revision Flashcards These superb packs of revision flashcards contain everything you need to cover for AQA & Edexcel A Level Economics A 20% discount is automatically applied if you order 4 or more flashcard packs in the same order! https://www.tutor2u.net/economics/store/selections/alevel-economics-revision-flashcards CONNECT WITH TUTOR2U ECONOMICS Web: https://www.tutor2u.net/economics Twitter: tutor2u Economics: https://twitter.com/tutor2uEcon Twitter: Geoff Riley https://twitter.com/tutor2uGeoff Facebook: https://www.facebook.com/tutor2u Instagram: https://www.instagram.com/tutor2uecon/ MORE HELP WITH A LEVEL & IB ECONOMICS Online webinars: https://www.tutor2u.net/economics/events/students/online Revision Workshops: https://www.tutor2u.net/economics/events/students/face-to-face Study Notes on every Topic: https://www.tutor2u.net/economics/reference/study-notes Key topics: https://www.tutor2u.net/economics/topics - - - - - - - - - MORE ABOUT TUTOR2U ECONOMICS: Visit tutor2u Economics for thousands of free study notes, videos, quizzes and more: https://www.tutor2u.net/economics A Level Economics Revision Flashcards: https://www.tutor2u.net/economics/store/selections/alevel-economics-revision-flashcards A Level Economics Example Top Grade Essays: https://www.tutor2u.net/economics/store/selections/exemplar-essays-for-a-level-economics
Views: 27733 tutor2u
Watch more Capital Account @ http://www.youtube.com/CapitalAccount http://twitter.com/laurenlyster http://twitter.com/coveringdelta A currency peg, otherwise referred to as a fixed exchange rate, is a type of exchange system wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold. The most readily well-known "currency manipulator" is China, which pegs the yuan to the us dollar. Their's is a flexible peg, but a peg nonetheless, and we look at this during our word of the day, as well as the case of Argentina. These are two very different types of currency pegs. In the case of the yuan, China artificially undervalues their currency relative to the dollar, in an effort to cheapen their exports and drive growth with sales to the US and other countries. This is an export led growth model, facilitated by a cheap currency. The people's bank of china achieves this buy regularly going out into the open market and buying us dollars in return of chinese yuan. This helps to push down the value of the yuan relative to the dollar, cheapening the chinese currency, but also causing inflation domestically because china has to print all this extra money in order to soak up the USD it buys. When a country like china loosens it's peg, its currency will naturally rise. In the case of Argentina, the central bank in that country was keeping its currency artificially high relative to the USD. When Argentina headed into depression during the early 2000's it became increasingly difficult for the country to maintain the peg, because in the case of countries that are artificially increasing the value of their currency, the national central bank had to intervene in the market by selling foreign exchange reserve in return for pesos. This had its limits, since the Argentinian central bank only had so many reserves to sell. The advantage of having a strong and stable currency, as was the case in Argentina throughout the 90's is that it attracts a lot of foreign capital. However, when times get tough, a lot of that capital can leave and then you can find yourself bankrupt very quickly.
Views: 9495 RT America
Your IB Economics Course Companion! This is video 3 of 10 videos in “The Exchange Rates Series”. Watch the entire series right here: https://www.youtube.com/playlist?list=PLNI2Up0JUWkH_sdGVbD8ADVwIApVuVIMe As a teacher of IB Economics in Santiago, Chile, these videos were created to help Standard Level students navigate their way through their two-year course of study. I have made these videos public in the hope that they might be helpful to other economics students around the world. It is important to note that I use Jocelyn Blink and Ian Dorton's "IB Economics Course Companion" as the primary text in class. As a result, many of these videos use this text as source material. I have found it to be an excellent resource for students. Another source you may find helpful is Jason Welker’s site www.econclassroom.com. Welker’s site and course companions are excellent and have served as another source for these videos. Thank you Jocelyn, Ian, and Jason. I hope you find these videos helpful to your study of IB Economics and please let me know if you have any suggestions to improve them. Enjoy! Brad Cartwright . Follow on Twitter: IB Specific News and Analysis Daily! https://twitter.com/econ_ib . Follow on Instagram: https://www.instagram.com/econcoursecompanion/
Views: 10099 Econ Course Companion
● We explain topics simply. So Subscribe if you want to learn while being entertained. ✔ Please like the video and comment if you enjoyed - it helps a lot! ▶ If you want a question answered then ask in the comments and we may make a video about it! About the video: You may have traveled a lot and wondered why you get more of one currency when you exchange it for another. If so, you have witnessed exchange rates in action, but do you know how they work? Watch the video to find out what exchange rates are, how to convert between them and the different systems which determine a currencies exchange rate. Historically the gold standard system had been used, which fixed currency to a select value of gold, held in a vault. The three main systems are the floating, managed and fixed exchange rate systems. The floating system has minimal government intervention, using supply and demand to determine the exchange rate. The managed exchange rate is allowed to be within a permitted band and a fixed exchange rate is usually pegged to a currency with the interest of being competitive in the international market. The video explains this in more detail and with helpful picture to guide you through the subject.
Views: 407367 SimplyExplain
Professor Perry Mehrling discussing the structure and fall of the Bretton-Woods international monetary system. In this system, the dollar was pegged to gold at $35 per ounce, then all other national currencies were pegged to the dollar at fixed exchanges rates. Then SDRs (Special Drawing Rights) could also be used to settle international payments. This system was put into place in 1946 until it fell apart in 1971. The reason it fell apart was because the supply of international dollars was growing faster than the supply of gold. This happened because of US trade deficits, but also because they lent dollars into existence to foreign nations to finance development. But as the supply of dollars started to get much larger than the stock of gold that the US held, it started to put pressure on the dollar exchange rate with gold. We could have revalued gold, but we didn't until it was too late. When countries started demanding payments in gold instead of dollars, Nixon chose to end convertibility into gold. This ended the Bretton-Woods system, and began the era of floating exchange rates, which we still are in today. This was a monumental moment for the world, because on a floating exchange rate, a government is capable of pursuing full employment through a Job Guarantee policy (more on that here: https://www.youtube.com/watch?v=KSw0ROvM6QM&t=344s&index=1&list=PLZJAgo9FgHWZHiVWJyW2KzOWsIresj_N2). Watch the whole lecture here: https://www.coursera.org/learn/money-banking/lecture/iMZY8/the-dollar-system Take the whole course here: https://www.coursera.org/learn/money-banking/home/welcome Follow Deficit Owls on Facebook and Twitter: https://www.facebook.com/DeficitOwls/ https://twitter.com/DeficitOwls
Views: 19855 Deficit Owls
Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Crawling Peg” A crawling peg is a system of exchange rate adjustment in which a currency with a fixed exchange rate is allowed to fluctuate within a band of rates. The procedure in which a currency's exchange rate is periodically adjusted, usually to counter the effects of inflation. The exchange rate remains fixed between one change (crawl) to the next. The par value of the stated currency is also adjusted frequently due to market factors such as inflation. This gradual shift of the currency's par value is done as an alternative to a sudden and significant devaluation of the currency. For example, in the 1990s, Mexico had fixed its peso with the U.S. dollar. However, due to the significant inflation in Mexico, as compared to the U.S., it was evident that the peso would need to be severely devalued. Because a rapid devaluation would create instability, Mexico put into place a crawling peg exchange rate adjustment system, and the peso was slowly devalued toward a more appropriate exchange rate. By Barry Norman, Investors Trading Academy - ITA
Views: 6733 Investor Trading Academy
Class 12 macroeconomics ..... Foreign exchange rate.... Foreign exchange.... Types of foreign exchange rate ..... Depreciation and appreciation of currency.... Contact for my book 7690041256 Economics on your tips video 72 Our books are now available on Amazon Special Combo - Economics on your tips Micro + Macro http://amzn.in/d/eSxj5Ui Economics on your tips Macroeconomics http://amzn.in/d/2AMX85O Economics on your tips Microeconomics http://amzn.in/d/cZykZVK Official series of playlists UG courses ( bcom, bba, bca, ba, honours) – https://www.youtube.com/playlist?list=PLgC10_Xv-BGirAqOr-hU8e-N_Nz0UpgJ- Micro economics complete course – https://www.youtube.com/playlist?list=PLgC10_Xv-BGg5n3YU6oEV7_HIzBuEbbOz Macro economics complete course- https://www.youtube.com/playlist?list=PLgC10_Xv-BGg2ORORpILqiDR1gyH3MkXw Statistics complete course- https://www.youtube.com/playlist?list=PLgC10_Xv-BGjrAkDyeMioJ7DEexAEeVdt National income – https://www.youtube.com/playlist?list=PLgC10_Xv-BGjpE-1V4uz_0wvvbZQnSsj_ In order to promote us and help us grow Paytm on - 7690041256
Views: 373846 Economics on your tips
To avoid the volatility and uncertainty that often accompany a floating exchange rate, some governments and central banks choose to manage or peg their currency's value against another currency. This lesson explains the tools by which an exchange rate can be managed and maintained within a range of values, using the Swiss National Bank's decision to peg the Swiss franc against the euro in 2011 as an example. Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870
Views: 11955 Jason Welker
What is CRAWLING PEG? What does CRAWLING PEG mean? CRAWLING PEG meaning - CRAWLING PEG definition - CRAWLING PEG explanation. SUBSCRIBE to our Google Earth flights channel - http://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ?sub_confirmation=1 Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Crawling peg is an exchange rate regime that allows depreciation or appreciation to happen gradually. It is usually seen as a part of a fixed exchange rate regime. The system is a method to fully use the key under the fixed exchange regimes as well as the flexibility under the floating exchange rate regime. The system is shaped to peg at a certain value but at the same time is designed to “glide” to respond to external market uncertainties. To react to external pressure (such as interest rate differentials or changes in foreign-exchange reserves) to appreciate or depreciate the exchange rate, the system can have moderately-sized, frequent exchange rate changes to ensure that the economic dislocation is minimized. Some central banks use a formula that triggers a change when certain conditions are met, while others prefer not to use a preset formula and frequently change the exchange rate to discourage speculations. The main advantages of a crawling peg are that it avoids economic instability as a result of infrequent and discrete adjustments (fixed exchange rate) and it minimizes the rate of uncertainty and volatility since the fluctuation in the exchange rate is kept minimal (floating exchange regime). For example, Mexico used a crawling peg to address inflation in the peso crisis. It transitioned from a fixed exchange rate in the 1990s without the instability of rapid devaluation. In practice, the system may not be an "ideal system" under certain scenarios. For instance, if there is substantial currency flows that may affect the exchange rate, monetary authorities may be "forced" to accelerate currency realignment, leading to substantial unsystematic costs to market players. In practice, only a few countries have adopted crawling pegs. E. Ray Canterbery proposes an idea of a delayed peg to eliminate many disadvantages of the crawling peg model. The delayed peg uses a wide band for exchange-rate fluctuations, while the band is allowed to move when foreign exchange liabilities accumulate (at a secret but predetermined rate). In China a new use of a "floating band" is essentially a delayed peg.
Views: 520 The Audiopedia
"Hong Kong Insight" EP1 - The Currency Peg & Hong Kong Economy Host : Christopher Lau (Politician, People Power, HK)
Views: 1897 Hong Kong Insight
Subject : Economic Paper :Advanced Macroeconomics
Views: 16309 Vidya-mitra
our website is www.DesireIAS.com
Views: 3205 Desire IAS
» Subscribe to NowThis World: http://go.nowth.is/World_Subscribe With about $400 billion in debt and a broken economy, Greece is in trouble. But, how did Greece end up with such a high debt, and who do they owe money to? Learn More: Greece's Debt Due: What Greece Owes When http://graphics.wsj.com/greece-debt-timeline/ "Greece is negotiating with its eurozone creditors to get more aid before the indebted government runs out of cash." Explaining the Greek Debt Crisis http://www.nytimes.com/2015/04/09/business/international/explaining-the-greek-debt-crisis.html "Greece, the weak link in the eurozone, is struggling to pay its debt as its people and its creditors grow more restive." Greek debts: what does it owe? When will the money run out? http://www.theguardian.com/business/2015/apr/24/greek-debts-what-does-it-owe-when-will-the-money-run-out "Crunch talks between Greece and its eurozone creditors are under way, but investors are growing increasingly sceptical that the country can reach an agreement on reforms and unlock the aid it needs from international lenders to avoid a debt default." Greek debt crisis: Who has most to lose? http://money.cnn.com/2015/01/28/investing/greek-debt-who-has-most-to-lose/ "Greece and its international lenders have embarked on a battle over the country's staggering debt." Watch More: What Happens If A Country Goes Bankrupt? https://www.youtube.com/watch?v=3PZDLG-rtGs&list=UUgRvm1yLFoaQKhmaTqXk9SA _________________________ NowThis World is dedicated to bringing you topical explainers about the world around you. Each week we’ll be exploring current stories in international news, by examining the facts, providing historical context, and outlining the key players involved. We’ll also highlight powerful countries, ideologies, influential leaders, and ongoing global conflicts that are shaping the current landscape of the international community across the globe today. More from NowThis: » Subscribe to NowThis News: http://go.nowth.is/News_Subscribe » Like NowThis World on Facebook: https://go.nowth.is/World_Facebook » Connect with Judah: Follow @judah_robinson on Twitter – Facebook: http://go.nowth.is/LikeJudah » Connect with Versha: Follow @versharma on Twitter – Facebook: http://go.nowth.is/LikeVersha http://www.youtube.com/nowthisworld Special thanks to Lissette Padilla for hosting TestTube! Check Lissette out on Twitter:https://twitter.com/lizzette
Views: 283645 NowThis World
To avoid the volatility and uncertainty that often accompany a floating exchange rate, some governments and central banks choose to manage or peg their currency's value against another currency. This lesson explains the tools by which an exchange rate can be managed and maintained within a range of values, using the Swiss National Bank's decision to peg the Swiss franc against the euro in 2011 as an example. This is part 2 of the lesson Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870
Views: 6140 Jason Welker
Your IB Economics Course Companion! This is video 7 of 10 videos in “The Exchange Rates Series”. Watch the entire series right here: https://www.youtube.com/playlist?list=PLNI2Up0JUWkH_sdGVbD8ADVwIApVuVIMe As a teacher of IB Economics in Santiago, Chile, these videos were created to help Standard Level students navigate their way through their two-year course of study. I have made these videos public in the hope that they might be helpful to other economics students around the world. It is important to note that I use Jocelyn Blink and Ian Dorton's "IB Economics Course Companion" as the primary text in class. As a result, many of these videos use this text as source material. I have found it to be an excellent resource for students. Another source you may find helpful is Jason Welker’s site www.econclassroom.com. Welker’s site and course companions are excellent and have served as another source for these videos. Thank you Jocelyn, Ian, and Jason. I hope you find these videos helpful to your study of IB Economics and please let me know if you have any suggestions to improve them. Enjoy! Brad Cartwright . Follow on Twitter: IB Specific News and Analysis Daily! https://twitter.com/econ_ib . Follow on Instagram: https://www.instagram.com/econcoursecompanion/
Views: 2109 Econ Course Companion
► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs The FT's Roger Blitz and Peter Kinsella of Commerzbank discuss whether maintaining the Saudi Riyal pegged to the Dollar is a sustainable strategy in the medium and long term. For more video content from the Financial Times, visit http://www.FT.com/video Twitter https://twitter.com/ftvideo Facebook https://www.facebook.com/financialtimes FT Markets The latest global markets overview http://www.ft.com/markets Click here for more FT Markets videos http://video.ft.com/Ft-Markets
Views: 12354 Financial Times
There are calls from time to time for reviewing the Hong Kong’s Linked Exchange Rate System, including de-pegging or pegging with RMB. 35 years after the establishment of the system, Dr. John Greenwood, Chief Economist of Invesco and famously known as the architect of Hong Kong’s currency peg, shares his view on it.
Views: 13 HKSI Institute
In this video I am explaining the topic of Foreign exchange rate. 1- Introduction 2- Meaning of foreign exchange 3- Type of Exchange rate. Fixed rate system. Flexible rate system. Adjustable peg system. Crawling peg exchange rate. Managed floating exchange rate.
Views: 38 SM8RT LEARNING
Professor L. Randall Wray on why a fixed exchange rate regime (such as a gold standard) reduces domestic policy space. This is because the government must operate its budget and the economy in such a way as to ensure that it grows the amount of reserves it has, or at minimum maintains it. In an exchange rate peg, the government makes purchases in the market using its own currency and the foreign currency in order to manipulate the price away from its market value. Therefore, the government must ensure that it has the foreign currency it's pegged to. Foreign currency comes into the country when the country exports (sells goods in exchange for foreign currency), and so the country must export more than it imports. The way to do this is with austerity, to keep domestic wages low so your citizens can't import, or to limit imports by law. With a gold standard, the government must ensure that it has a steady supply of gold to meet conversion demand. So, if the government allowed the money supply to increase (like by deficit spending) this would increase the demand for conversion, and eat into the government's gold supply. To combat this, the government can sell bonds (and allow the market determine the interest rate) to lock that money up so its citizens don't convert. In both cases, the amount the government can spend is limited. In a fixed currency exchange rate, too much spending will promote employment, cause wages to rise, leading to rising imports, and decreasing the government's foreign currency reserve. In a gold standard, the government must issue bonds when it deficit spends, and must let the market determine the interest rate, potentially leading to a runaway deficit and forced default. But on a floating exchange rate, neither of these can happen: the government can determine how much to spend and what interest rates should be, without fear of defaulting on any promises. See the whole video here: https://www.youtube.com/watch?v=-KRi9nF8BiA Follow Deficit Owls on Facebook and Twitter: https://www.facebook.com/DeficitOwls/ https://twitter.com/DeficitOwls
Views: 1132 Deficit Owls
Ben Bernanke explains the recent changes in China’s exchange rate and economic policy and why they are positive for the country’s economy. https://www.brookings.edu/events/gaining-currency-the-rise-of-the-renminbi/ On September 23, the Global Economy and Development program at Brookings hosted the launch of “Gaining Currency: The Rise of the Renminbi,” featuring the book’s author, Brookings senior fellow Eswar Prasad. Subscribe! http://www.youtube.com/subscription_center?add_user=BrookingsInstitution Follow Brookings on social media! Facebook: http://www.Facebook.com/Brookings Twitter: http://www.twitter.com/BrookingsInst Instagram: http://www.Instagram.com/brookingsinst LinkedIn: http://www.linkedin.com/com/company/the-brookings-institution
Views: 1639 Brookings Institution
Oct. 13 (Bloomberg) -- As the U.S. dollar weakens, countries that pegged their currency to the greenback are coming under increased pressure to abandon the dollar. Bloomberg's Michael Whitney reports. (Source: Bloomberg)
Views: 1283 Bloomberg
Nigeria's Naira slumped 23 percent against the dollar on Monday after the central bank removed its currency peg to pursue a more liberal currency policy. The move was meant to put an end to chronic foreign currency shortages that have choked growth in Africa's biggest economy.
Views: 1264 CGTN Africa
Third-party photos, graphics, and video clips in this video may have been cropped or reframed. Music in this video may have been recut from its original arrangement and timing. In the event this video uses Creative Commons assets: If not noted in the description, titles for Creative Commons assets used in this video can be found at the link provided after each asset. The use of third-party photos, graphics, video clips, and/or music in this video does not constitute an endorsement from the artists and producers licensing those materials. AEI operates independently of any political party and does not take institutional positions on any issues. AEI scholars, fellows, and their guests frequently take positions on policy and other issues. When they do, they speak for themselves and not for AEI or its trustees or other scholars or employees. More information on AEI research integrity can be found here: http://www.aei.org/about/ #news #politics #government #education
Views: 201 American Enterprise Institute
Thinking about purchasing a Ledger Nano Hardware Wallet? Browse their official website: https://www.ledgerwallet.com/r/67ef Want to join coinbase to begin your crypto journey? Here’s a link to get free $10: https://www.coinbase.com/join/558828dc34383271a500003b Step up your game and Check Out Binance too: https://www.binance.com/?ref=10080191 Join the Robinhood app and invite your friends to Robinhood and win free stock. Here's my invite: http://share.robinhood.com/heidic1 Find me on Steemit: www.steemit.com/@heiditravels Twitter: @blockchainchick Instagram: @hheidiann If you’re looking for an app that tracks the price of BTC & ETH and many other coins, check out the CoinView App: https://play.google.com/store/apps/details?id=br.com.freeflowt.coinview LINKS FOR ADDITIONAL READING FOR THIS VIDEO & ALL INFO IN TEXT DOWN BELOW Pegged cryptos, their beginnings, downfalls and comebacks: https://cryptoinsider.com/pegged-cryptocurrencies-credibility/ Check the number of coins in circulation: www.omnichest.info See Tether's reserves: https://wallet.tether.to/transparency Tether FAQ: https://tether.to/faqs/ BitShares Pegging System: http://www.devtome.com/doku.php?id=bitshares_-_market_pegging BitShares Website: https://bitshares.org/ I’m going to begin by stating the obvious but bear with me. Bitcoin and cryptocurrencies in general are volatile. It’s going to be this way until a wider adoption of cryptos is achieved. Volatility is the result of a small market that is easily influenced by the movements of buyers and sellers. As the market grows, prices stabilize and everything gets boring. In the meantime, there are some cryptos that are designed to be the refuge from the storm. The key for pegged or tethered cryptocurrencies is the reserves that the crypto has of the other, more stable currency. So for USDT, also known as Tether for example, on their website you can see how much USD they have in their reserves. The amount in their reserves should closely match the amount of tokens they have in circulation. This is to ensure liquidity for their user base and therefore also ensure the value of their crypto. For the sake of transparency they show their reserves on their website, however, whether this number is realistic or not is yet to be confirmed. But it seems at the very least they aren’t employing the tactics of fractional reserve banking. In the past, Tether did experience illiquidity when the banks that they work with obstructed their ability to access fiat currency. This led to Tether dropping from their standard $1 per coin value down to around $0.90. A lack of liquidity isn’t the only thing that can damage the price of pegged cryptos. The thing about the free market is that if it is pushing for a certain price and a pegged crypto is meant to resist this price action, sooner or later the peg will fail and it can result in dramatic devaluations. There are tokens that exist that are pegged in a way that doesn’t require them to have reserves of the actual fiat, or commodity. I’m talking specifically about BitUSD, the pegged cryptocurrency available on the Bitshares exchange. BitUSD uses a pegging system unique to Bitshares that is also somewhat of a trademark for things built by Dan Larimer in that they are complicated to understand, yet they work.
Views: 3005 Crypto Tips
Exchange Rate of Currencies Today Fallow on: Google + https://plus.google.com/u/0/100511350449094892906 Facebook Page: https://www.facebook.com/Pakistan-Stock-Exchange-What-is-the-Stock-Market-and-752203091790446/?modal=admin_todo_tour Facebook Group: https://www.facebook.com/groups/2265460077016453/ Hello dear viewers welcome to my youtube channel YOUR STUDIO. we are uploading daily new best video in hindi urdu & english. if you like my video then subscribe my channel thanks. exchange rate,trading,exchange rates,forex,currency,floating exchange rates,economics,market,exchange,finance,business,depreciation of currency,currency trading video,foreign exchange,currency peg,currency trading,interest rates,pegged exchange rate system,trade,dollar,stock,analysis,fx,economy,inflation,money,china,currency exchange rates explained,currency appreciation,currency depreciation,foreign currency,foreign trade,personal finance,financial education
Views: 150 B2B BBA
This is Stavros Tousios from FXPRIMUS headquarters in Cyprus and this is a special video coming from our investment research team. Over the past few days we have noticed that the Hong Kong Dollar has fallen to the weaker end of its permitted band, trading at 7.85 on three separate occasions! Pressure on the HK Dollar is tremendous as we speak as the foreign currency is pegged to the US Dollar at 7.8, with the top of its permitted band being the 7.85, the bottom being 7.75, a level reached in 2015, where the monetary authority last intervened. The weak-side of the trading band introduced back in 2005, defined as the weak-side convertibility undertaking (CU), had Hong Kong Monetary Authority buying 2.42 billion Hong Kong Dollar from the exchange market yesterday during the US session, and again, another 816 million as the interest rate gap between Dollar and the Hong Kong counterpart widened. With market participants looking at the situation with interest it is likely that activity will remain at increased levels as the interbank rates in Hong Kong soared 4.1 basis points for the day, the largest increase since November 29. According to analysts’ price could stay around the 7.85 per US Dollar for the rest of 2018 but since the Hong Kong Monetary Authority is obligated to defend the level and stands ready to fulfill any requests from banks to support the currency something big may be coming ahead that has a lot of commonalities with the 2015 Swiss Franc. I will be watching this pair and any relevant news very closely as opportunities may arise. FXPRIMUS is a leading online broker providing trading services for forex, commodities, metals, energies, stocks and indices. Serving traders in 200+ countries across 6 continents, FXPRIMUS offers award-winning trading conditions and order execution, multilingual 24/5 support and unrivalled fund safety measures, enabling clients to trade 120+ instruments, via advanced web and mobile trading platforms. Open your account today at www.fxprimus.com. Risk Warning: Trading on margin products involves a high level of risk.
Views: 302 FXPRIMUS - The Safest Place to Trade
What is FIXED EXCHANGE RATE? What does FIXED EXCHANGE RATE mean? FIXED EXCHANGE RATE definition
Views: 1216 The Audiopedia