Inflation
The level of inflation, or providing of national monetary item, is measured in the rates of price advance. Two indexes of change of standard of prices are distinguished:
Producer Price Index - PPI is index of production price change (on wholesale parties of the manufactured goods). This index is calculated in percents to the previous period, and this is the primary sign of inflation, as production prices join in consumer prices.
Consumer Price Index - CPI is consumer price index, which expresses direct level of inflation. The level of inflation and change of rate of exchange are in reverse dependence.
Balance of Payments is balance of payments for the national economy. Balance of foreign payments and receipts of country includes: Trade Balance or Trade Gap which is balance of trade; and Capital Payments Gap which is balance of motion of capitals.
Exceeding of receipts from abroad above payments makes positive balance of balance of payments and results the growth of national currency exchange rate. Positive balance and rate of exchange have direct dependence. Exceeding of payments abroad above the receipts creates the deficit of balance (negative balance) of payments and conduces to falling of national currency. A deficit and rate of exchange have reverse dependence.
-: News :-
01// As well as any market, FOREX has the participants: they are persons accomplishing transactions and intermediary operations. Central banks take part as members. The management by currency backlogs, conducting of currency interventions having influence on the level of exchange rate, is included in their function, and also adjusting of level of interest rates on the investments in national currency.
02// International corporations, carrying out foreign trade operations, companies participating in international trade is steady demand produced on foreign currency (in part of importers) and suggestion of currency (exporters), and also placed and attracted free currency tailings in short-term deposits. Thus these organizations of direct access to the currency market, as a rule, do not have and conduct conversion and deposit operations through commercial banks.
03// Functioning of currency markets is not halted not even for a minute. In calendar days they start working at Far East, in New Zealand (Wellington), passing time zones consistently - in Sidney, Tokyo, Hong Kong, Singapore, Moscow, Frankfurt-on-Mein, London and finishing day in New York and Los Angeles. Counting out of time zones is conducted from a zero-meridian passing through Greenwich (suburb of London), and time carries the name of world or GMT - Greenwich Mean Time.
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