By Jim Mathew – Recent developments in the value of the currencies are exciting and significantly varying from its historic performances. Recent economic crisis generated a movement to risk that overvalued US dollar against almost all of its trade partners. This process has started to reverse as trade flows picks-up and GDP growth trend becomes positive globally. But a jobless recovery in the United States, with global growth generated mainly by emerging markets had resulted in drastic variations in the values of the currency. Countries endowed with natural resources and raw materials have benefited from the rise of China, the booming demand for these materials from developing countries lead by China, Inda and Brasil.
In comparison with period of March – June 2009 with June- July 2010, the New Zealand Dollar and the Australian Dollar have done well respectively 32% and 30% versus the Euro. Agriculture and Mineral was 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. Canada is known for having the second most oil reserves of oil and gas globally – 179 billion of barrels, and is the number 1 exporter of crude to America (satisfying 22% of the US demand) and the safer, least volatile maker in the list of the other top producers (Mexico, Saudi Arabia and Venezuela). Not only do they provide oil , but Canada is also a leading provider of farming fertilizers to the developing countries. The Canadian dollar has appreciated 21% versus the Euro in the mentioned period.
Brazil for its part has recently found an sea reserve of oil with 3-5 billion barrels, the largest oil find since the 2000 12 billion discovery in Kazakhstan. Brazil is also a leader in green energy – predominantly bio-fuel. Farming has also caught up in growth with production in soya using advanced genetic engineering showing good 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.
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