subject: A Comprehensive Note On How Countries Like China, Brazil And Others Have Changed The Nature Global [print this page] Lately changes in the intrinsic value of the currencies are quite interesting and significantly different from the past. Recent economic crisis generated a flight to risk that overvalued US dollar versus other currencies. This process has begun to reverse as trade flows picks-up and Gross domestic product improves around the world. However a jobless recovery in the United States, with economic improvement around the world created largely by developing nations had resulted in huge variations in the values of the currency. Regions endowed with minerals and natural resources like oil have benefited with the rise of China, the increasing consumption from both China and India.
Comparing the period of March June 2009 with June- July 2010, the New Zealand Dollar and the Aussi have gone up respectively 32% and 30% versus the European currency. Farming and natural resources predominatly minerals account for 37.6% and 4.6% of export from Australia. In 2009 Australia exported $42.5B to the Chinese, resulting in China becoming their largest export market.
Among the developing nations there are many other currencies that have shown appreciation in value. These include - South African Rand, Colombian Peso, Canadian Dollar, as well as the Brazilian Real. The Canadians are has the second largest oil reserves of crude and gas in the world - 179 billion of barrels, and is the number 1 exporter of crude to America (it provides 22% of the American consumption) and the safer, least volatile maker among the other top providers (Mexico, Saudi Arabia and Venezuela). Canada not only has energy but also provides the grain and fertilizer to feed the increasingly wealthy population of the emerging markets Needs that increase faster than the population / GDP growth as a wealthy consumer shifts from grains to meat . Needless to say the currency has moved up 21% versus the Euro and much more against the USD.
Brazil for its part has recently found an sea reserve of oil with 3-5 billion barrels, the largest oil discovery since the 2000 12 billion discovery in Kazakhstan. Brazil is also a leader in alternate energy predominantly bio-fuel. Farming has also caught up in growth with production in soya using innovative genetic engineering showing tremendous results. They are giving the developed nations a real run for their money and even winning some of the battles. Naturally, the overall value of the Agriculture sector has more than double over the last 10 years. Brazil is now the biggest exporter of Beef, poultry, sugar cane and ethanol.
by: Jonny-Forex Trade
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