Gone were the days when the rest of the third world countries were looking up to the economic progress of super powers like the United States and Japan. The year 2013 marks the all-time low U.S. dollar value when America is battling the worsening unemployment rate. Japan also has problems of its own. So, this means to say that the stronger currencies in weaker countries do not mean that those particular economies are doing well since the U’S. dollars have been the standard basis for the world’s currency exchange. So, if your local currency is getting stronger, it’s not the right time yet to rejoice because this also has negative implications. Get updated by reading this stock market update:
Stocks: Central banks take center stage
A worse-than-expected report on U.S. unemployment claims Thursday offset the positive tone set by the Bank of Japan, which had announced an anti-deflation program that exceeded already sky-high expectations. http://money.cnn.com/2013/04/04/investing/premarkets/index.html?iid=H_MKT_News
Take the case of the Philippines where overseas workers are major contributors to the country’s economy – it sounds positive when news about the Philippine peso getting stronger is flashed over television screens. The real score is much felt by the families of these OFWs which is the opposite. For one, the OFWs themselves could either lose their jobs or forced to settle with lower pays. The recipients of their earnings also find that the value of the remittances received are not anymore as substantial than they used to be – to the verge of budget shortages. So, next time you hear such news, verify the actual status and its implications by reading more!