The causes and consequences of the growth of the euro
The increase in the dollar or euro rate invariablyleads to panic in society. However, is this a negative phenomenon and how can it be reflected on the lives of ordinary citizens. We propose to understand why the euro is growing and how this will affect the situation in the market of foreign products or labor.
Why the euro is growing
This year, residents of Russia arethe devaluation of the ruble and the gradual appreciation of the euro and the dollar, which last time rose in price only in 2009. Naturally, everyone is interested in why this happens, because the country's economy is developing relatively stably and there is no reason to believe that the situation on the domestic market caused a rise in the price of foreign currency.
The reasons for the growth of the euro:
The formation of the national currency rate dependsfrom market factors. The fact is that the country's economy belongs to the developing countries, and it depends entirely on the economies of the USA and the European Union. Therefore, when it is decided to raise the dollar or euro rate against the currencies of developing countries, this is directly reflected in its internal value.
Of great importance is the psychological factor. As soon as there are reports in the media that the dollar or the euro will start to go up, people are beginning to massively buy this currency, thereby providing excessive demand for it and only supporting the devaluation of the ruble.
Now the appreciation of the euro and dollaris directly connected with the meeting of the Federal Reserve System (FRS). There, it was decided to strengthen the US economy by selling short-term debt and issuing long-term bonds. The total amount of these financial transactions is 400 billion dollars. Foreign investors are interested in such operations. Leaders of European countries too can not stand aside while raising the dollar. In the EU there is a floating rate, which simply adjusts the euro to the dollar rate, although this is not reflected in the lives of ordinary citizens.
Probable consequences of the growth of the euro for Russians
Naturally, first of all, only negative consequences come to mind. However, according to leading economists, the euro exchange rate in Russia can also be positively reflected on the state of the economy.
Of course, some sectors of the economy, for exampleconstruction, may suffer from the growth of the euro and the dollar and even be frozen. This will lead to a surge in unemployment. Also, sectors of the economy may suffer, which depend on foreign raw materials and the cost of it. However, even in this situation, the correct actions of the authorities can improve the situation and mitigate the negative consequences.
For example, industries aimed atuse of foreign raw materials, can switch to domestic counterparts. This will reduce the number of foreign products on the market and, accordingly, stabilize the cost of imported products.
With regard to the stabilization of the ruble in the light of the constant growth of the euro, the authorities are likely to have to adjust to world standards and increase the exchange rate to raise the price of oil per barrel.
In any case, economists call residentsRussia does not panic, but for the safety of its monetary savings it is advised to keep them in a different currency, since the dollar and the euro are by no means the only money that is relatively stable. While experts refrain to draw conclusions as to whether the euro will grow in 2015 due to a complex geopolitical situation. However, the reserves of the Russian economy will help stabilize the ruble exchange rate and ensure stable development of the economy, even with a big appreciation of the euro and the dollar in the market.
