Interest rates are the cost of borrowing money, or revenue from lending money, interest rates in question here are those obtained by the central bank in return for lending to commercial and investment banks, and interest rates are the most important factors affecting the currency trends at all.How interest rates affect the movement of currencies? Higher interest rates in a particular state encourages investment in that state, and thus increase demand for the currency and increase its value. And vice versa.Example: If the interest rate in the United States of America (6%) and the interest rate in Japan (3%), then investors will choose a high interest rate to achieve a greater return, so when interest rates rise attract investments for higher-yielding assets and the rising value of the currency. And vice versa.
Controlled in interest rates and when issued? Decided by the central bank to raise or lower interest or install as required by economic conditions, which controlled the first and last in interest rates. Interest rates are issued for each country on a monthly basis, and you can follow the results on a regular basis in the economic calendar for Arab Palmtdaol.
Monetary Policy Is a process control or regulate the financial system by central banks or government authorities in order to control the quantity supplied of money to provide funds for the state, and achieve high growth rates, economic stability and control inflation.
The monetary policy is divided into two types: The central bank implements expansionist policy when an economic recession in the state, and this policy is based on increasing the quantity of money supply, or lower interest rates, in order to Renaissance economic growth or return to economic stability.
Central Bank applies these deflationary policy in the case of economic prosperity, and this policy is based on quantitative reduction of the money supply, or an increase in interest rates, in order to maintain the stability of economic growth or to achieve high growth rates.
Controlled in interest rates and when issued? Decided by the central bank to raise or lower interest or install as required by economic conditions, which controlled the first and last in interest rates. Interest rates are issued for each country on a monthly basis, and you can follow the results on a regular basis in the economic calendar for Arab Palmtdaol.
Monetary Policy Is a process control or regulate the financial system by central banks or government authorities in order to control the quantity supplied of money to provide funds for the state, and achieve high growth rates, economic stability and control inflation.
The monetary policy is divided into two types: The central bank implements expansionist policy when an economic recession in the state, and this policy is based on increasing the quantity of money supply, or lower interest rates, in order to Renaissance economic growth or return to economic stability.
Central Bank applies these deflationary policy in the case of economic prosperity, and this policy is based on quantitative reduction of the money supply, or an increase in interest rates, in order to maintain the stability of economic growth or to achieve high growth rates.
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