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Effects of Currency Transfer on Ten Currencies against the US Dollar

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Currency transfer affects the value of currencies. Consequently, this affects a lot of activities such as business, travel or overseas purchases . Although quite a number of countries use US dollar as their standard currency, a good number of them only accept purchases in their own currencies. The most affected lot, in this case, are the multinational business persons who deal with imports and exports with several other countries all having different currencies. These effects can be either positive or negative depending on the strength of the currencies being converted.

Below is a brief analysis of currency exchange against the US dollar

European euro
Business with America from any European country is far much cheaper than from a third world country -Most of them have weak currencies.This is because the Euro is ranked higher than the US dollar, therefore,imports from the US market are much cheaper. However,American traders find it expensive when importing goods from the Europen market.

Ethiopian Dir.
Ethiopia is one of the struggling 3rd-world countries in East Africa. When doing business with America, they find importing goods from America much expensive since

Egyptian dollar
Egyptian dollar is a relatively strong currency in Africa but when compared to the US dollar, it is a little lower in value. Business therefore with the United States is unsuitable to them and where possible, they acquire materials from a country with relatively lower currency value such as the Chinese. Similarly, acquiring US manpower is rather expensive since payment to be made will have to be equivalent to the amount in dollars.

Nigerian Naira
Nigerian Naira is a very weak currency despite the country's large oil production. Exchanging this currency to the US dollar in the international market is quite disadvantageous . This makes overseas business with the United States very expensive compared to other third world countries

Indian rupee
Despite the technological advancements in India, its high population has caused a major decline in the value of its currency. Trading with the United States is therefore, expensive.The US market, on the other hand, imports cheap goods, raw materials and labor for its industries.

Swiss franc
Trading with the United States using the Swiss franc is quite profitable in the international market since the Swiss franc is slightly stronger than the American dollar. This makes purchasing of goods from the United states cheaper. American traders tend to shy away from the Swiss franc when making imports of goods and labor.

Japanese yen
In the recent years,Japan has been undergoing tremendous steps towards becoming the world's economic superpower . Development in infrastructure and industrial growth has strengthened the Japanese yen; raising to an almost equal value to the US dollar. Trading Japanese yen with the dollar is fairly cheap.Investors from both countries tend to enjoy importing or exporting goods or services since low exchange costs incurred.

British pound
One of the countries that have been on the upper hand when trading with the United States is the British. The British pound is far much higher in value compared to the American dollar.Making imports (goods) from the United States as well as foreign manpower is very cheap to them. However, this will disadvantage American traders will have to pay more pound using their dollars.

Mexican peso
The Mexican peso is a relatively weak currency despite its proximity to the United States of America. It involves in a lot of trading with the United States though most of the time it is usually disadvantaged since it has a weak currency. Importing products http://sendmoneyhome.co.uk/panel/#/pages/show/newsfrom the United States to Mexico is, therefore, an expensive investment though most of the time it is usually the only option available.

Zimbabwean dollar.
Being the weakest currency, this is usually the best example for comparison when it comes to currency exchange. Trading with the United States, millions of Zimbabwean dollars are converted to a few couple of dollars which clearly is a disadvantage to the Zimbabwean businessmen.

The above comparison clearly indicates the effect that currency transfer has on the multinational business and the strength of the currency is the key determining factor in most cases.