« Older Entries

How Are Exchange Rates Formed?

What is Exchange Rate?

An exchange rate can be defined as the financial worth of a country’s currency versus the value of another country’s currency. Essentially, it shows how many dollars an individual can buy with one euro. For example, at the beginning of 2019, the currency exchange rate was 1.13. Thus, this means that it takes $1.13 to purchase € 1. Moreover, exchange rates are basically the amount of one currency a consumer can trade for another. Another example of this is if a consumer sells their one dollar in the UK, they will receive only 0.77 pounds in return. This transaction is also referred to as currency exchange.
Flexible Exchange Rates

However, it is important to note that some exchange rates are constantly fluctuating. This means that a nation’s currency rates are always changing based on the markets. The question that arises is which market is responsible for the flexible exchange rates? Well, the answer to that is the foreign exchange market- also known as forex. Because this market is constantly fluctuating, exchange rates alter momentarily. Flexible rates are set by forex traders. They create their opinion after judging various factors, such as the country’s debt levels, economic strength, and the central bank’s interest rate. Then based on these aspects, traders provide a currency’s worth. This leads to the foreign exchange market consumers see today. An example of flexible exchange rates can be found in the USA. This is because the US permits its forex market to regulate the dollar’s value.
Fixed Exchange Rates

Consequently, when a nation’s currency does not vary based on the fluctuations in the forex market. Instead, the country operates on a fixed exchange rate. In this case, the nation ensures that its currency value remains the same against other crucial currencies, such as the dollar. To maintain the fixed value, the country buys and sells large amounts of its currency.

foreign exchange market

China is an example of a fixed rate. China pegs the yuan, its currency, to a direct value counter to the dollar. In January 2019, 6.73 Chinese yuan was equivalent to one dollar. However, since 2003, the dollar weakened against the yuan because, at that time, one dollar could buy 8.28 yuan. Thus, the dollar has weakened. Today, it can buy less yuan than is 2003.
The US and China

The US government tried to urge China to raise the yuan’s value. This helps the US to price its exports in China competitively. Moreover, it makes Chinese exports in the US more costly. With attempts to raise the usd exchange rate with China, the trade deficit proposed is greatly unfavorable for China. The US expends more to buy more Chinese goods than it does selling American products in China. Thus, China’s American imports greatly outweigh China’s exports.

In 2015, China altered its policy to make the yuan more flexible. This helped China become less reliant on the dollar. China aims to make the yuan widely traded. Since China and the USA are the two of the strongest economies in the global economy, the CNY to USD is one of the most observed exchange rate.
How Exchange Rates and Interest Rates Affect One Another

When the Federal Reserve increases interest rates, investors who are looking for returns are likely to sell assets denominated in overseas markets and purchase dollar-denominated assets. Investors are more likely to buy dollar-denominated holdings and sell foreign currencies when the interest rates range between the US and other countries widens.

However, to buy dollar-denominated assets, investors must use dollars. Thus, they exchange foreign currencies to dollars, increasing the demand for the dollar exchange rate. This is because there is a heightened demand for the dollar. Equally, when the Fed reduces interest rates, investors sell their dollar-denominated holdings and buy other assets. In this circumstance, the dollar’s exchange rate is weakened. Therefore, US exchange rates and interest rates drop and climb in tandem.

Moreover, the Fed’s interest rate rulings also impact the interest rate outcomes of foreign central banks. However, they are influenced in the opposite way. When the Fed increases its rates, the dollar becomes stronger. As a result, the exchange rates in other countries then weaken. In turn, the import prices in other countries rise, forcing inflation. Most developing countries’ imports are priced in US dollars; thus, a decline exchange rate makes it challenging for governments, the national bank, and companies to service dollar-dominated debt. Therefore, national banks, especially in developing nations, will want to back their currency exchange rates, by increasing interest rates corresponding with the Fed to counteract the Fed’s decision.

Equally, when the Fed decreases interest rates, other nation’s currency exchange rates get stronger impeding their exports. The central banks in those nations will likely decide to cut interest rates leveled with the Fed’s cuts instead of accepting weaker exports. As a result, the Fed’s interest rate decision influence the dollar’s exchange rate. Furthermore, the dollar’s exchange rate affects interest rate outcomes in other nations.
Do They Affect My Personal Finance?

Do exchange rates affect the individual consumer’s personal finance? The answer to that is yes. Even if you do not travel. Exchange rates affect daily personal finances. A strong home currency makes imports cheaper. That, in turn, lessens inflation and reduces the cost of living. In that case, individuals can buy more without impacting their quality of life. When the dollar weakens import prices rise. As a result, consumers’ standards of living go down because it becomes difficult to afford the basics. Moreover, it also results in inflation.exchange rates and personal finance

The strength of your nation’s currency has a large impact on the whole society. It may seem like forex rates are far away and only impact big corporations and the government. But the truth is, every single person is affected by them. That is why is it so crucial to have a strong understanding of this topic. Do not let an external factor have a large influence on your personal finances without you even knowing.

—

Tags:

Coping with Depression

Coping with depression. Anyone who has this will tell you that not only is it awful it itself but there is an added problem. Which is that people around you do not understand, even if you are able to try to explain it to them and ask them for support. Unfortunately, the word is used too freely and has been bandied around a lot recently with a lot of famous people and celebrities claiming to have it over the slightest things when in actual fact the truth is that they simply were unhappy about a hiccup in their life or things did not run as smoothly for them as they usually do. You only have to open a newspaper or magazine to see a headline that states something along the lines of CHERYL COLE DEPRESSED BECAUSE SHE MIGHT NOT GET X FACTOR JOB and you will see what I mean. When someone who is young, healthy, fit, good looking, famous, rich and adored says it is the end of the World when one thing goes wrong they are not getting things in proportion and it would be ridiculous to say they are ill! They are seeking a perfect World where every day is fantastic. Being upset about not getting another three million dollars when you are very rich, have your health and your looks and the love of may is not about being ill, it is about being spoilt.

So – strange as this may seem – the first thing you should do is make sure that it really is this that you are coming with and not being unhappy or put out because something did not go your way. The real thing will be with you for ages, not just one day and then go, and it would not come purely because of one little thing. When someone claims to be feeling it because it is raining or they have no spending money that week that is simply wanting life to go the way they want all of the time.

There are all different types and the usual type is REACTIVE. This is over something important, such as a person you love dying, losing your home, finding out you have cancer. Something which is extremely emotional or life changing or both.

You are doing well if you follow a formula for coping with depression because that way when you have the worst days and the bad days you will see a light at the end of the tunnel. You need to deal with it with a mixture of logic, practical matters and emotion, because it is an emotion and a nasty one. Some forms can bring with them physical symptoms so ask yourself if you are suffering from any physical symptoms due to your depression? Headaches, stomach aches, lethargy, sleeping more or less, change of appetite, nausea, wanting to hide from people etc? Then remind yourself that this is temporary and you will overcome it. Many forms of this illness bring physical symptoms along with the emotional ones, a sure sign that you really are ill and not just having a bad few days emotionally. But just as it can come it can go.

Sometimes medication can beat help you with coping with depression but some people get bad side effects from them and they can be addictive, which in the long run could cause you more problems and maybe worse problems! There are natural ones through homoeopathy, herbal medicine (such as St Johns Wort – BUT that must be taken with caution, read up about it before taking it), Vitamin B can help too. If you want to go down this road read up all about it online or consult a nutritionist. A naturopath is an option. Other people find that using something like a brain machine is a big help. You really should try one of these machines they do help the brain, even if you do not have depression! I have been using one for years, and I never feel down, it helps me to think, to relax, to meditate, to concentrate and make clear decisions. I am a great believer in preventing problems rather than letting them happen and then worrying about what could have been prevented. Some say that going to a counsellor is of benefit to them but I find that strong decisive people do not benefit from it and those who are less decisive and analytical and confident may do. The strong thinkers tend to be able to work it all out on their own without their help. If your partner has just left you or died then there is nothing to work out anyway, the cause is obvious.

Talking is often the best, simply sitting down and telling someone who truly cares how you feel and bouncing off of them and being able to lean on them can be a huge help. If you are not able to do with with a loved one (which may be the cause or may make it worse) then you should ring the Samaritans or see a counsellor and go over things with them. Other options? Talk to a good cheap accurate online psychic clairvoyant – or get in touch with one of those rare creatures, the free online agony aunt, or search out a good new age forum for people to chat to who know how you feel and have been through a similar thing, maybe still are going through it, can support and understand and maybe give professional advice too.

Tags:

Pickle Allergy – Can you be allergic to pickles?

Can you be allergic to pickles?
Yes! While it is not very common, but it is possible to have an allergy to pickles. Because pickles are made from cucumbers that have been fermented or pickled in a solution containing vinegar, salt, and other seasonings. Allergies to pickles typically occur due to an allergic reaction to one or more components present in the pickling solution or additives used during the pickling process.

What causes a pickle allergy?
Vinegar:
Some individuals may be allergic to vinegar, which is a common ingredient used in pickling. Vinegar allergy can cause symptoms such as itching, hives, swelling, or digestive issues.

Sulfites:
Sulfites are sometimes used as preservatives in pickles to maintain their color and freshness. Sulfite allergies are more common and can cause allergic reactions ranging from mild symptoms like hives and itching to severe reactions like difficulty breathing or anaphylaxis.

Additives and spices:
Pickles often contain additives like artificial coloring, flavor enhancers, or spices such as dill, mustard seeds, or garlic. Allergic reactions to these additives or spices can occur in individuals who are specifically allergic to them.

It is important to note that being allergic to pickles is not the same as having an intolerance or sensitivity to pickles. Food intolerances or sensitivities can cause digestive symptoms such as bloating, gas, or diarrhea but are not caused by an immune response like allergies.

If you suspect an allergic reaction to pickles or any food, it is recommended to consult with a healthcare professional or allergist who can perform proper testing and provide guidance on managing your specific condition.

4 Common Symptoms of a Pickle Allergy?
Allergies to pickles are usually triggered by specific components found in pickles, such as the ingredients used in the pickling process or preservatives. Here are some common symptoms that someone with a pickle allergy may experience:

1. Skin reactions:
Itching, hives (raised, itchy welts on the skin), redness, and swelling may occur after coming into contact with or consuming pickles.

2 . Gastrointestinal symptoms:
Nausea, vomiting, diarrhea, and abdominal pain can be experienced by those who are allergic to pickles.

3. Respiratory issues:
Some individuals may experience allergic reactions in the respiratory system, leading to symptoms like sneezing, runny or stuffy nose, coughing, wheezing, and shortness of breath.

4. Anaphylaxis:
In severe cases, a pickle allergy can lead to anaphylaxis, which is a life-threatening allergic reaction. Symptoms of anaphylaxis include difficulty breathing, a sudden drop in blood pressure, rapid or weak pulse, swelling of the throat and tongue, and loss of consciousness. Anaphylaxis requires immediate emergency medical attention.

Steps Relieve Pickle Allergy Reactions
If you suspect or know that you have a pickle allergy and experience mild to moderate allergic reactions, you can take the following steps to treat the symptoms:

Avoid the allergen:

The most crucial step in treating a pickle allergy is to avoid pickles and any other foods or products that contain pickle-derived ingredients. Read food labels carefully and ask about ingredients when dining out or eating at someone else’s home.

Over-the-counter antihistamines:
If you experience mild allergic symptoms like itching, hives, or mild gastrointestinal discomfort, over-the-counter antihistamines (e.g., cetirizine, loratadine, or fexofenadine) may help alleviate the symptoms. Always follow the recommended dosage and consult with a pharmacist or healthcare provider if you are unsure about which antihistamine to use.

Topical corticosteroids:
For localized skin reactions like itching or redness, you can apply over-the-counter hydrocortisone cream to the affected area. This may help reduce inflammation and itching.

Oral corticosteroids:
In more severe cases where symptoms persist or worsen, a doctor may prescribe oral corticosteroids to reduce inflammation and suppress the immune response. These are short-term treatments and should be used under medical supervision.

Keep hydrated:
If you experience vomiting or diarrhea as part of your allergic reaction, it’s important to stay well-hydrated. Drink plenty of fluids, and consider oral rehydration solutions if necessary.

Rest and observe:
Allow your body time to recover and rest if you experience mild to moderate allergic symptoms. Monitor your condition, and seek medical attention if symptoms worsen or you experience any signs of anaphylaxis.

It’s essential to remember that these treatment options are for managing mild to moderate allergic reactions. If you experience severe symptoms or signs of anaphylaxis, which can include difficulty breathing, swelling of the throat, rapid pulse, or loss of consciousness, seek emergency medical attention immediately. Anaphylaxis is a life-threatening allergic reaction that requires prompt treatment with epinephrine.

To properly manage a pickle allergy and receive personalized treatment advice, consult an allergist. They can conduct allergy testing, provide guidance on avoiding trigger foods, and recommend appropriate medications based on the severity of your allergy symptoms.

How can I be allergic to cucumbers but not pickles?
Here are a few reasons why someone might be allergic to cucumbers but not pickles:

Heat and fermentation: During the pickling process, cucumbers are typically subjected to heat and fermentation. These processes can modify the proteins present in the cucumber, potentially altering their allergenicity. Some individuals may be specifically allergic to certain proteins found in fresh cucumbers but may not react to the modified proteins in pickles.

Pickling solution and additives: Pickles are made by immersing cucumbers in a solution containing vinegar, salt, and other seasonings. The addition of these ingredients, particularly vinegar, may change the chemical composition of the cucumber and affect its allergenic properties. Therefore, an individual who is allergic to fresh cucumbers may tolerate pickles due to the changes brought about by the pickling solution and additives.

Sensitivity to specific compounds: It’s also possible that individuals who react to fresh cucumbers may be sensitive to certain compounds present in the cucumber’s skin or flesh. During the pickling process, the cucumber’s skin is often peeled or removed, and this can eliminate or reduce exposure to the specific compounds causing the allergic reaction.

Tags: