Foreign currency as a target for investment

The structure of the modern world is simultaneously an intuitive, extremely clear phenomenon and some complicated system. Take at least a monetary way of exchanging values. It seems to be clear that humanity needs a conditional exchange element for the distribution of goods and services between people. However, after Explanations of this kind almost all immediately raise questions: "Why do not everyone have enough conditional elements of exchange?", "Why in the 21st century with modern technologies of accounting and control of financial flows there is poverty and hunger?", And many others.

The answer to all questions is one, and it is in human greed. Money, and in modern, global, understanding - currency, from ancient times to the present day are an insuperable motivational factor that has done much good and bad for mankind. They are a means of achieving the limited benefits of modern civilization for every person, forcing people to resort daily to the use of tremendous efforts in pursuit of them.

Foreign currency

In Russia, unlike the rest of the world, there was a certain, even an experimental, period in which foreign money was a crime, and domestic banknotes lost the value of a measure of greed. Then a socialist society was being built, approaching the incarnation of communist ideas. However, to date, everyone knows the result of such transformations. The ruble of that period was poorly convertible, there was very little that it was possible to buy inside the country. A foreign currency Served as a means of exchanging a large Soviet state with the countries of the bourgeois West, which in turn, and in due time allowed the capitalist enemies to bring down the threatening system of equality for so long. The population of the post-Soviet space has since been biased against national banknotes, and the majority is used to save the accumulated foreign currency. Thus, selling national banknotes to commercial banks, increasing the demand inside the state, as a rule, for the US dollar (and other currencies), the domestic money becomes cheaper.

Operations with foreign currency

To date, different exchange rates, formed due to the impact of a large number of different factors on this or that monetary unit, open the opportunity not only to save money in the currency of a more reliable state, but also to earn through various monetary manipulations. Operations of this kind take place in foreign exchange markets, with commercial and central banks taking the lead. They, with the help of currency exchanges, affect the economic instruments of supply and demand of monetary units, determining in part the exchange rate. However, in turn, it is formed not only through currency trading, but also through the definition by the central bank of the country of the amount of money within the state, the real national income of the state, prices and other factors.

Credit in foreign currency

Obviously, due to the great popularity among the population of dollar deposits, commercial banks give loans in foreign currency for the purpose of earning money. And since interest rates on the deposit foreign currency earns less, then the interest on the loan will be less. However, it is worth remembering about inflation and taking such loans only for minor purchases. After all, who knows when the ruble will fall again?