Most currency rates are defined by
different economic and political factors clouding over their
respective countries. But that's not always the case. There are
certain commodities that are highly dependent on their exported raw
materials. Those currencies are called Commodity currencies.
Most of those who belong to the
Commodity currencies are developing countries. But there are a few
majors who belong to this kind of currency – Loonie, Aussie, Kiwi.
Loonie is highly dependent on their oil
exports. Next thing to middle east countries in terms of oil
reserves, Canada has an oil reservoir that can compete in the world
trade.
Meanwhile, the Aussie has a huge
reserve of Gold which is due to their geographical position. It fills
up half of their export thus making the AUD/USD directly correlated
to gold prices.
Next in line is the Kiwi. There isn't
an outstanding commodity in this region but the huge variety of raw
material makes it very dependent to the export industry. Their
exports includes dairy goods, meat, fish, wood, wool, etc.
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