Monthly Archives: November 2016

What is the exchange rate?

Published / by makethew / Leave a Comment


The exchange rate is the price at which you can exchange a currency against another. Basically, if fruits were currencies and 2 bananas cost the same than 3 strawberries, the exchange rate would be 1 banana = 1.5 Strawberries.


What does the exchange rate depends on?

While there’s a lot of debate amongst economists (surprise, surprise) about what causes exchange rates to change, there is a consensus (according to Jason Van Bergen) that the following six factors are important:

  • Inflation rates: generally, countries with lower inflation rates have higher-valued currencies
  • Interest rates: higher interest rates often mean that investors get a better return in one country than another, and so sometimes push the value of a country’s currency up compared to low interest countries
  • Current account deficits: a current account deficit means that a country is spending more on foreign trade (via imports) than it is earning (via exports), and so it will need to borrow from other countries to finance its deficit – and generally this means the value of its currency will decline
  • Level of public debt: if a country is running very large budget deficits, and borrowing to cover this cost, you will often see high inflation, which in turn will often mean a lower currency valuation.
  • Terms of trade: the terms of trade means the difference between the price of exports and the price of imports – a positive terms of trade means the prices a country gets for its exports is higher than the price it pays for its imports. Generally, the stronger the terms of trade, the stronger the currency, which has definitely been affecting the Aussie dollar in recent years
  • Stability and economic growth: finally, the level of political stability, and whether an economy is growing at all, matter to investors. Stable, growing countries are lower risk, and therefore tend to have stronger currency valuations.

Top 3 key benefits of exchange rate alerts

Published / by makethew / Leave a Comment

Are you used to follow exchange rate evolution? Thanks to the exchange rate alerts you don’t have to worry about it anymore. An exchange rate notification allows you to save time and save money and it’s totally free and personalised on moneytis website. Find bellow the different explications.

No effort to track the exchange rate & save money

When you subscribe to an exchange rate notification tool, you don’t have to pay attention to the exchange rate variation. The tool will send you an email in real time or push you Facebook messenger notifications.  Here are the different kinds of alerts:

Top alert

When the exchange rate is good, it’s a good time to send money

Awesome alert

When the exchange rate is very good, it’s an exceptional case, it really is one of the best moments in the year to exchange currencies.

No go alert

When it’s not a good time to send money abroad.

Thanks to these alert you can receive notifications when the exchange rate has significantly changed.


When the exchange rate is good it means that it has recently changed in your favor, you can save more money by transferring money at this moment than when the exchange rate is in a bad situation.

Exchange rate alerts are free, personalised and easy to subscribe

Let’s take the example of Moneytis’ alerts. You have a simple way to subscribe.  Let your email on the website, you will receive the alerts by email

Afterwards you will start receiving exchange rate notifications. Use them to transfer money at the best moments.

I’m sure you will agree that an exchange rate alert helps to save time and money. Moreover, it’s totally free. No need to watch the exchange rates every 5 minutes on Xe or Oanda websites. Feel free to share the good news around you.



What will the exchange rate be like in 100 years?

Published / by makethew / Leave a Comment

I know, this sound like a crazy question, but did you ever wonder how the exchange rate will behave in the future? What will happen to the US Dollar, the Euro or the Yuan? Well, I have and I’m going to share my thoughts with you my dear reader.

Though, before we start I need to ask you: Did you ever think about the concept of World Currency? Do you know that there exist non national currencies? Did you hear what happened to the ZWB, the Zimbabwean dollar?

If you are wondering and you are an expatriate, the best exchange rates you will get is the good one.

So let’s see the possibilities here

A world currency appears and the exchange rate disappears

Let’s imagine that the US Dollar starts to be used and recognized in every country of the world. Why would we use any other currency? Nobody would want to have a currency that he can only use in several places. The exchange rate of the dollar against those values would become infinite.

However, rest assured, the others countries will never accept this. Another credible possibility would be that an independent currency, such as gold or silver would become this world currency. Gold is a bad example as gold is complicate to exchange. Crypto-currencies would make the deal.

The Austrian economic movement state it will never happen. If an exchange rate go to the moon, another currency will be used instead, and the currency exchange rate will go down as the bubble explode.

A hundred years of extreme currency fluctuation

An alternative is that the exchange rate will continue to fluctuate but the volatility will explode. Why would that happen? Because trust in currencies is at an extreme low and the next crisis will trigger tremendous consequences. As of today, the currencies are national and linked to much more than just the economy.

To illustrate my statement, I’m practically sure that a group of youtubers or popular bloggers could trigger an economical crisis by lowering the trust in the exchange rate of the Thai Baht for example (THB).

Actually if anyone is interested to be part of this, I know the movement of the anonymous youtubers. There is something going on there.

Before letting you to your thoughts, I would like to open your eyes on another concept: Cultural Currencies. If anyone can issue a currency, some will use national currencies, other worldwide currencies but I would use a cultural currency. A cultural currency is a currency based on a community that you recognize yourself in. The Dogecoin for example was one. I will make a specific post about this in the future.

Ps : To answer one of my first questions, the ZWD just disappeared after his exchange rate went as low as 1USD = 4 500 000 0000 ZWD. Now the dollar reign in Zimbabwe.


Help source : worldbank