Great financial tips to ensure you make more dollar

Saudi Arabia and the United States have been friends for some time. To the average public within the country most Americans view Saudi Arabia as sponsors of terror citing the countries Muslim background. However, Saudi Arabia regularly supports the United States and has done so again in the last round of OPEC meetings.

Venezuela and Iran wanted to open discussions about valuing oil against a new currency standard then the dollar. They were hoping the move would be symbolic that the world should move away from seeing the United States as a leader and move towards some other supper power like China or the European Union.

The 12 member OPEC dignitaries flew into Riyadh and Saudi police and helicopter blocked roads, and protected the sky with helicopters and the dignitaries made it to their place of residency. The meeting was called to discuss oil exports and the cost of oil. In addition, the meet is to ponder ways of reducing emissions.

A secret broadcast came around which showed that Venezuela and Iran were behind the move to change how oil is priced into another currency. Venezuelan representative Angelas de Morais stated, The weakness of the dollar is affecting us all and But that’s a global-scale problem. It’s not for an individual organization to tackle. He was referring to Saudis insistence on keeping the American dollar.

Saudi Arabia doesnt want to see the American dollar collapse as much of its economy is based on the American dollar. They have hundreds of billions of dollars invested within the United States and removing the dollar as the oil pricing standard may make it decline further which is likely to hurt Saudi Arabia further.

The dollar has declined significantly over the past few years. This decline is up to 15% against the Euro in the past 12 months alone. As the dollar deflates American buy less products from overseas which hurts our allies and business partners. In addition, the decline in the dollar reduces the value of investments made by foreign countries in the Euro.

When countries purchase American dollars or make investments in American dollars they can find that the dollar is deflating which means they are losing money on their investment. Each dollar is worth less then it was a few years ago and therefore their investments have shrunk. To counter this a number of countries have begun to diversify their holding in foreign currency to more stable currency like the Euro.

The declining value of the dollar is a double-edged sword for the United States. On one end the declining dollar increases American exports because American products become cheaper but on the other end America has less foreign influence because countries arent selling as many products in the United States.

The current crisis the country has to face is the amount of dissention that a number of disgruntled countries are beginning to show now that their economies are not so tightly tied to the U.S. We may see a growing trend of countries attempting to hurt American interests and business partnerships around the world.

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During recent months, the Canadian dollar traded a tight range against Sterling between 2.2500 and 2.3000. This follows a sharp uptrend in GBP/CAD from a low around 1.9737 (02/03/06) to a recent high at 2.3567 (23/01/07) caused by expectations of higher interest rates in the UK, coupled with interest rate stagnation in Canada. At the same time, the US$ has weakened, forcing the exchange over US$2 per GBP and down to US$1.11 per CAD giving UK customers a boost while detracting the value for our southern neighbours.

In the UK, the Bank of England left interest rates on hold in April, however, expectations of higher rates in the months ahead continue to offer support to Sterling. With a buoyant housing market and strong levels of consumer spending, the market is expecting that the Monetary Policy Committee (MPC) will be forced to raise rates at least once more in an attempt to dampen down inflationary pressures. The headline Consumer Price Index (CPI the most recognised measure of inflation in the UK) is currently running at 2.8% y/y against a target rate of 2.0% and raising interest rates is the most obvious way of combating rising prices.

Meanwhile, Canada has been faced by interest rate stagnation following the rise to 4.25% in May 2006. Risks to the Canadian economy remain finely balanced with the threat of an economic slowdown filtering across the boarder from the US. As its biggest trading partner, any signs of a struggling US economy may impact the Canadian economy although this has not really been the case so far in 2007. In similar fashion to the UK, the Canadian housing market remains robust with The Canadian Real Estate Association reporting strong sales of existing homes in February and record high average house prices. The Canadian Dollar is also likely to remain well supported against the US$ by rising oil prices given that oil exports represent a large percentage of the Canadian economy.

Looking back to March 2006 GBP/CAD traded a low of 1.9737 (02/03/06) indicating a difference of CAD 32,300 in less than twelve months when looking to transfer 100,000. Therefore, anyone looking to transfer funds between Canada and the UK should pay considerable attention to the GBP/CAD exchange rate as it can have such a dramatic impact upon their future wealth. Should you be looking to move large sums it definitely pays to monitor the markets and be aware of international factors that can affect which direction currencies will go. The debt and ongoing military interventions of the US will undoubtedly have some effect on the US$ against the CAD, though the weak US$ will most likely help boost the exports from their struggling economy. The recent trend of the Dow Jones to smash new records and factory orders starting to increase does point towards the start of a turn around for the US which, if fuelled by the exports will be another reason for the US to try to maintain a weaker dollar.

Advising migrants and businesses of currency movements and protecting them from the risks associated with fluctuating exchange rates is the speciality of currency brokers. Whilst nobody can guarantee future currency movements due to the sheer size and number of participants in the market, both personal and business accounts can increase their bottom lines in dramatic fashion by taking expert advice.

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