A full transcript of this video available at: bit.ly ERIC FINE, VAN ECK GLOBAL MANAGING DIRECTOR discusses the firms mid-year outlook for emerging market debt: “Emerging markets have strong balance sheets and a depth to their domestic markets.” A Fund prospectus is available at bit.ly – - – - – - – - – - IMPORTANT DISCLOSURE The views and opinions expressed are those of Van Eck Global and are current as of July 2010. Fund manager commentaries are general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. All performance information is historical and is not a guarantee of future results. Investments returns and the principal value of a fund will fluctuate with market conditions. You may have more or less than the original amount invested when you sell. For more information about Van Eck Funds or fund performance, visit vaneck.com. Any discussion of specific securities mentioned in the commentaries is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary. All indexes mentioned are measures of common market sectors and performance. It is not possible to invest directly in an index. The Van Eck Web site provides for more information on holdings, performance and indexes. Investments in emerging markets securities are subject to a high degree of risk, including those associated with less reliable financial information, higher costs, taxation, decreased liquidity, less …
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A brief collage of media coverage aimed at providing an introduction to BerkShares, a local currency for the Berkshire region.
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Many fundamental factors determine the supply and demand for a particular currency and its value against other currencies. Among these factors are interest rates. Central banks are the institutions that set the base rates in a country and change their levels to streamline the development of the local economy. Increasing the interest rate will result will in raising value of the nations currency while lowering interest rates should have the opposite effect, respectively.

In general, interest rates initially affect various government bonds, especially bond yields, creating demand for the currency in which these bonds are denominated, resulting in appreciation of the local currency. The economic theory presupposes such behaviour of the market participants although they often behave in a different manner and under the influence of other factors. Sometimes, investor will look for a safe haven regardless of the fact that interest rates are high in their country, because they do not believe in the local economy or consider the currency rates as unfavourable in the long-term.

Interest rates influence also the entire economy; determining the cost of lending and borrowing money, creating lower or higher money supply and demand, respectively. A factor you should consider when the matter in hand is high nominal interest rates is the level of inflation. A high inflation rate can offset against the high interest rate.

An interesting phenomenon relative to interest rates is that very often the foreign exchange market is driven by perceptions and forecasts of future interest instead of the actual levels set by the central banks. Therefore, when Forex dealers en masse believe that interest rates in a particular country might fall, they could start selling the nations currency regardless of the fact that all fundamental indicators are sending positive signals.

All these factors are important but only in the situation of a free-floating currency and open economy i.e. no excessive trade and investment restrictions and lack of restrictive foreign exchange regulations. If these conditions exist, the currency rate will be influenced by changing interest rates and will appreciate and depreciate accordingly. On the other hand, the countries offering highest yields on their bonds are not very predictable ones and their bonds usually bear higher risk for investors. Hence, the very first alarming signal relative to this country will urge the investors to divest their investment and the currency value will fall immediately, resulting in less advantageous currency rates against the major world currencies.

Taking decisions to cut or increase the base rates is a complicated process involving many high ranking officials. The central banks actions are scrutinised by other governments and market players because interest rate changes influence the exchange rate directly and indirectly. As a rule, the market reacts promptly to correct the actual currency rate of the respective currency. Nevertheless, the market as a whole will respond unexpectedly on many occasions since the Forex market is very hard to predict. Nobody can push the currency rates lower or higher if the market mood urges investors to head in the opposite direction.

You find that the currency shops offer higher conversion rates, simply because they supply you with the retail currency rates, which can be on top of the wholesale currency rates. By checking in the currency calculator site anybody can produce rough estimate of an amount function as the realizable local currency in respect of exchange received.If you wishes to transform 1 unit of forex trading into local currency there can be your exact value nearly 3 decimal points. If after an interval of say 14 days the significance is checked, it shall reflect any depreciation or appreciation on the currency whenever there are happened.

Experienced persons can predict, if you experience usually appreciation in currency and contain the forex for a while. The traders take an every day basis seeking the service to determine instantly, what value they will likely to be getting on the foreign exchange held with the anticipation of appreciation? Knowing timely the currency rates help by determining the money necessary for servicing a small business transaction? One can find multiple purposes for exchanging the currencies. Of that the normal occasion being planning holiday expenditure at many foreign destinations requiring fx at all the places planned to arrive at.

The currency calculator service might be availed anytime, when out of the country. Anybody can head to a determination, which places to visit and which to avoid to save currency, because most of the currencies are difficult which is not beneficial to look at there, which shall mean getting fewer services with the currency stuck comparison to soft currency locations.You can find situations if one is creating a business, requiring trading while in the foreign currency echange, the industry type of daily activity frequently per day. It becomes very necessary that particular keeps a perception of major currency rates schedule wise decision in line with the strength of the currency opted. By wise decisions on the reasonable length of time it may possibly immensely improve the overall profits. You require to uncover the alternative by developing own inquisitive techniques.One needs to keep hand the forex calendar, which lists many big events during the year, which can affect GDP of an country in the predestined time therefore affecting the currency rates also, there may be necessity of postponing some of the trading of transactions for some time to be free from danger, till these events are just over.

With wide access for trading inside the currencies for many persons lovely a great trading opportunity. They are buying and then sell the currencies limiting their risk and profits within certain limits, that they must figure out how much risk they are able to afford to look at, without affecting their normal activities. They average in profit or simply a nominal loss only. They should be on constant touch with currency calculator sites for knowing hour and hour the worthiness of currencies they are trading in.

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So before you take off so it makes sense to follow the exchange rates exchange rates over a period of time, that way you are better equipped to cope with the local exchange shops.
There are also portals that have a currency converter to do the work for you therefore like this one.
Some of these portals even have both exchange rates and a currency converter on their sites, so it is possible to use such a portal on at regularly basis.
Here is an example you can use, currency rates or currency converter
Therefore follow the currency exchange rates over time, so you do not end out paying too high a price for the local currency.!

And when you and your family gets back, do the same as you did before you went on vacation.!
Follow the exchange rates over time, and wait for the right time to sell the local currency you have with you home.

So all you have to do is follow these simple steps, and you can minimize the risks for you and your family.

That’s common sense!!

BerkShares local currency supports the community, economy, ecology, and sustainability of the southern Berkshire region of Massachusetts. Administered by the EF Schumacher Society, BerkShares creates consumer awareness about the consequences of spending practices, supports local businesses, facilitates the development of import replacing industries, and serves as a model for other regions.
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Sponsor: LibertyActivism.info – This vid was first shot and produced in early 2009. More info at AltExpo.org http To buy an ad like the one in this vid….email me: RidleyReport at live…. period com. Ad rate details: nhunderground.com RidleyReport name of advertiser dave…

BerkShares local currency supports the community, economy, ecology, and sustainability of the southern Berkshire region of Massachusetts. Administered by the EF Schumacher Society, BerkShares creates consumer awareness about the consequences of spending practices, supports local businesses, facilitates the development of import replacing industries, and serves as a model for other regions.

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Currency speculators make money by either overvalued or undervalued selling. Basically, they try to predict how a currency’s exchange rate will change, invests money accordingly, and reap gains afterward. There are many factors that can contribute to currency fluctuations. However, the primary determining factor of their importance is how the market reacts to them.

Catastrophic news like national bankruptcy, foreign debt defaults, and similar situations are pretty much obvious choices for such factors. However, many believe that other, more petty issues which could have been easily resolved, have their effects blown out of proportion because of the overall effect that currency speculators have on the world market.

News that is so small, such as an EU city that reported a minimal budget deficit, could become reason for national economic shock. Currency speculators can amplify the issue by dumping a nominal amount of the nation’s currency to cause a slight drop in the exchange rate. A currency manipulator, in essence, exchanges his local currency for a stronger foreign currency.

This currency dumping increases the supply of free-floating local money in the market. By simple supply and demand, there will  be a drop in the local currency’s value.  Afterward, a currency speculator can wait and see if people react to it – and they do, in most cases. 

As soon as people joined the currency dumping bandwagon, what was just an isolated currency dumping incident will now become a national phenomenon. Unfortunately, it is just a matter of time before  neighboring countries who has local holdings may follow suit.

Markets panic. The local currency plunges in value. The national government will have to pay more for debt servicing. There will be less for public expenditure. The economy slows down.

Ironically, this is just because of a seemingly petty case.

Gail and John give us an insight into how a community currency can work successfully for a small town.