|
Post by Starman on Nov 26, 2004 7:59:16 GMT 2
The dollar has been hitting record lows everyday for the past week. Word is out everyone is dumping the dollar in favour of other currencies or gold according to the way it is going up. I know a few of us get our salary in dollars (not me thank God) and was wondering has your salary is decreasing everyday have you thought about getting paid in Lira instead? Personally if Turkey wants to get closer to the EU they should abandon the lousy dollar and go for euros instead considering the way that currency is getting stronger and stronger.
|
|
|
Post by justforfun on Nov 26, 2004 13:20:30 GMT 2
a strong currency in today's global economy isn't necessarily a good thing. it is true that there is a trend where investors are slowly withdrawing from their dollar based investments, but it isn't at any warning rate yet. the dollar is the currency of choice for 75% of all central banks and that will not change for a while...the downward spiral of the dollar has to continue for much longer before the central banks start switching to euro or yen. since turkey is a dollar oriented country, there is no need to change the salaries from dollar to euro. our salary isn't decreasing...it would be decreasing if we were an euro oriented country with salaries in dollar. staying with the dollar as a country has the great benefit that our exports become cheaper in the world market hence increasing demand. the downside is that imported goods, from europe for example, are becoming more expensive. the weak dollar is actually hurting europe, so it's good we are not in the same boat right now.
|
|
Matt Krause
Active Member
Boklu Dere Dweller.
Posts: 45
|
Post by Matt Krause on Nov 26, 2004 14:59:13 GMT 2
I'm no expert on this, but I always feel free to offer my opinion, especially with Starman running the show here, because facts and accuracy are openly encouraged to take a back seat!
Anyway, if you look at exchange rates over 20 or 30 years, you can see currencies running in cycles. A quick eyeball of the charts and I see 10 years seems to be a common length for a cycle (5 up, 5 down).
Of course, in actual life, we all get paid in the morning, and the money goes to pay our expenses tonight (or if you're in the US these days, last night's expenses).
But if countries tried to switch back and forth, pacing against one currency today and another one tomorrow, in similarly short cycles, it'd be more chaotic than it already is. Today's strong currency is tomorrow's weakling.
(plus, as justforfun points out, a currency following a weak dollar is good for Turkey's exports)
Matt
|
|