Why the dollar is growing

Why the dollar is growing

From day to day, minor fluctuations in the currency exchange rate occur, including in a pair of the dollar / ruble. However, under certain conditions, the national currency is depreciated. All these processes have interrelated causal relationships.

1
The dollar is the US National Currency, the economy of which is one of the most energy-dependent. Despite the fact that this state also stands in the first rows of black gold and part of the mined resources are exported, enterprises require large procurement of imported oil. In this regard, there is a certain dependence between the price of the dollar and oil prices, which manifests itself long before the demand for the US currency at the level of a particular state: the dollar rate is growing towards other currencies, for example, the euro, Canadian dollar or ruble .

2
In international trade, calculations for goods and services in many cases are carried out in dollars. First of all, the buyer acquires the American dollar in the foreign exchange market, whose participants are the central bank, commercial banks, currency exchanges and brokers. Exchange rates are determined mainly in demand and suggestion. Large loans of various companies in foreign banks or long-term accumulations of large amounts in dollars in their own accounts also lead to an increase in demand for this currency, which leads to an increase in the course.

3
From the growth or fall of the national currency rate in the foreign exchange market, the value of goods intended for international trade is changing. To establish a course after such changes, a method based on a purge of purchasing power is used. PPS is formulated using the law of one price, which states that the price per unit of a certain product should be the same in different countries, but it is expressed in different currencies. The ratio of these prices shows the exchange rate for two concrete currencies.

Course establishment method

4
With the economic crisis, the government government can artificially relax the national currency by its issue (issue of monetary signs). For example, when the volume of international trade and exports of Russia decreases, the currency weakening by the internal methods allows to improve the conditions for exporters, the costs of which are calculated in rubles, and revenue - in dollars or other currency.

5
Many people seek to translate their savings into a firm foreign currency. Under the solid currency implies the course and purchasing power of which are not prone to decrease and have the most stable level. Such currency is the US dollar, the level of inflation in the United States is significantly lower than in Russia. Therefore, to keep savings in rubles is dangerous: over time, purchasing power decreases. As soon as any prerequisites appear to increase the dollar's course, panic rates quickly, and they start massively buying foreign currency to avoid depreciation of their own savings. As a result, the demand and an increase in the value of the proposal occur again.

As a rule, the desire to translate rubles to dollars in a ordinary citizen arises at that stage when the course has already grown. Therefore, experts do not recommend buying currency during its growth rate, because Most likely, in the near future he can fall.

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