1

Group Name : Jelena Jankovic

Group member : NAME MATRIC NUMBER Loh Moi Sin BG09110358 Santhiyah Munisamy BG09110301 Seela Kumar BG09110263 Rema Sridaran BG09110396 Charmilaa Silvaduray BG09110016 Goo Wooi Sin BG09110271

The fluctuation of US dollar and its effect toward world economy

2

IntroductionUS dollar have important implications It has strengthened on a trade divided into four sections a) research motivation significance b) scope of research c) literature review d) discussion and finding

3

Background•world economy •Great Depression of 1929-1930s•1998•2008• frequently-used currencies•transactions as foreign currencies

4

Objective

• Fluctuation US dollar effects toward Asia.• Fluctuation of US dollar effects toward Middle East• Fluctuation of US dollar effect toward Australia. • Fluctuation of US dollar toward Africa.

5

Research motivation and significance

•beneficial to the investors•future financial development•experience for future•solution and well prepared

Scope of Research

•close relationship•important support•a lot of impacts

6

Literature review

Mirzaie and Magda 2002

Demand-side

Exchange rate

Supply-side

7

Commodity prices

Mohsen etal., 2010

Khor, 2005

Asian economy

W.Click, 2009

Schnabl and McKinnon ,

2002

8

• Rogoff and Maurice, 2009

Oil demand and supply

• Nartova and Fezzani, 2011• Kandil & Mirzaie, 2000• Jammie and Maurer, 2002Oil price and

exchange rate

9

Discussion and Finding

Economy on Ontario

Economy of Indian

Impacts on economy

Financial market of Asian

Financial market of Africa

Impacts on Financial market

10

Asia banking factor

Africa banking sector

Impacts of banking sector

Asia stock market

Africa stock market

Impacts of stock market

11

Impacts of exchange rate

Exchange rate in Asia

Exchange rate in Africa

Exchange Rate Middle East

Exchange rate in Canada and

Ontario

12

Commodity of Africa

Commodity of Australia

Impact of commodity

Oil sales

Oil demand and supply

Impacts of Middle East

13

Impact of labor market in US

dollar appreciation

Demand -side

Exchange rate

Supply -side

14

Thailand

• Chronic current account deficit

• Excessive external debt

• Collapse of the property sector

• Political instability

Philippines

• Effect the asset market

• Affect the financial sector

• Influence the household and communities

Korea

• High interest rates

• Debt burden

• Massive layoff

• Untested presidential Leadership

15

Situation

Malaysia

Indonesia

PhilippineThailand

Korea

Restrictions of IMF • Thailand & South Korea - Higher foreign ownership

• Indonesia - Limitation in forward foreign currency trading

•Philippines - macroeconomic adjustment and structural reform

17

Limitationspayment

lack of prior research

sources constriction

casual remark

18

conclusion affects the world economy huge losses borrowed lot of money from IMF to solve the economy problems avoid the same problems in the future