Talk:Exchange rate/Archive 1

Archive 1

Chinese currency peg

Changed the example. The PRC government states that its policy is to have the RMB trade within a narrow range with the US dollar, but it is not formally a peg. The HK dollar is formally pegged to the US dollar. — Preceding unsigned comment added by Roadrunner (talk • contribs) 04:49, 21 December 2003 (UTC)

Add explanation why exchange rates vary

Can we have some explanation as to why exchange rates vary? Clearly, at a particular time, some people will prefer to have their wealth denominated in yen rather than dollars, and vice versa - hence the market. So specifically, I'm asking for reasons why a person would choose to transfer their money from one currency to another. What makes one good, and another less good?

Why do they vary? The first things that come to mind are:

• Central bank open market operations
• changes in relative interest rates between the countries
• Changes in balance of payments and balance of trade
• changes in inflation rate and money supply
• short term currency flows (ie. corporate profit repatriation)
• hot money flows (speculators) (political uncertainty)
• growth rate
• yield curve
• almost any other piece of economic data that is released

The complete list would be very long. --mydogategodshat 03:07, 9 Feb 2004 (UTC)

Bear market

"In the foreign exchange markets there is never a 'bear' market." A currency can enter a bear market. In any transaction there must be a buyer and a seller. In that sense the world market can never enter a bear market. - Jerryseinfeld 22:39, 18 Dec 2004 (UTC)

If residents of every country exchanged their currencies for a non currency store of value, e.g. gold, then the gold price in all currencies would increase dramatically. This would be a bear market in the foreign exchange markets. — Preceding unsigned comment added by 196.3.50.254 (talk) 19:55, 17 January 2008 (UTC)

Move proposal

The following discussion is closed. Please do not modify it. Subsequent comments should be made in a new section. A summary of the conclusions reached follows.

The result of this discussion was to Not move

---

Move this article to currency market or something like that. - Jerryseinfeld 05:27, 19 Dec 2004 (UTC)

• vote for move Currency Markets
• absolutely not Bluemoose 18:05, 6 Mar 2005 (UTC)
• There used to be a redirect from Foreign exchange market to this page. I understand that "Currency Markets" and "Exchange Rate" are two seperate topics. I have removed the redirect and later, that page has been designated as a economy stub. Please feel free to improve Foreign exchange market. --doles 00:38, 2005 Mar 7 (UTC)

The discussion above is closed. Please do not modify it. Subsequent comments should be made on the appropriate discussion page. No further edits should be made to this discussion.

Mechanics of trading

This section needs a re-write, but since finance is not my strong point I'll leave it to someone who is more of an expert on the topic. I have made a few edits which hopefuly will make it more encyclopedic. I deleted the last paragraph which was non-NPOV and seemed like a marketing blurb cut and pasted from a currency trader's website.

The paragraph beginning "It is possible for investors to speculate on currency..." was poorly written as it used too many exclamation marks, and phrases like "you are very happy!" and "nice fuzzy feeling". I have attempted to improve on the style and make it more encyclopedic. --Peter 02:17, 4 Apr 2005 (UTC)

Top traded currencies

The table which shows the top most traded currencies says that 1st is USD then JPY and THEN EUR, but if I'm not mistaken (IF I'm not, I not saying I right) Euro is traded more than Japanese Yen. Can anyone clear this up for me. - Gerbon689 13:10, 17 Apr 2005 (UTC)

Fluctuations in exchange rates

I suggest we remove the following line from paragraph 4; "When China announced plans for its first manned space mission the price of the Yuan jumped." The Yuan is pegged to the dollar, therefore, how does it jump? Googling failed to reveal any news articles reinforcing this statement. --Danrdanny 12:16, 25 Apr 2005 (UTC)

good catch! That is very misleading. I'm assuming the contributor for that blurb meant the synthetic yuan futures.... I'll see if I can fix/clarify. Feco 22:59, 29 Apr 2005 (UTC)

External Links

I cleaned up the link section with two goals in mind:

1. reduce the use of this page as a google pagerank manipulation- the descriptive terms attached to the links shouldn't be obvious google fodder... I tried to change them to reflect who/what was on the linked paged.
2. I cleared out obviously commercial links... several pages provided cross rates, but some of them were just the bait to a trading platform. Why list eight different sources of cross rates when we already have two or three comprehensive sources that aren't just the cover page for a trading site?

Feco 19:19, 21 Apr 2005 (UTC)

NPOV

I just added a NPOV tag to the article. There are many things in the article that I think are very much aimed at Americans. For example: from it's very first mention, the US Dollar is simply reffered to as the Dollar. Others include capitalising numerous currencies (which at one point does include the US Dollar, but for the most part, only currencies other than it) - Gerbon689 22:07, 25 August 2005 (UTC)

I wonder if you have made any edits to correct the problems you identified, Gerbon689. I see nothing in the recent edit history from Gerbon689. It is always preferable to correct than to complain. Also, there does not seem to be any dispute about the neutrality of the article. It seems only that you are unhappy with its quality, i see no one disagreeing with you. Perhaps you are deeply offended by the article's american-centric viewpoint, but i would really recommend you make the changes you feel neccessary. It sounds like your suggestions are reasonable, and i'm not sure who you think will dispute your changes. If there's no dispute, then the NPOV of the article is, by definition, NOT disputed, and thus the NPOV template you have stuck on the page is not justified.

I suggest that the NPOV template be removed, and Gerbon689 make the changes she noted. This seems like the least upsetting course of action. Please comment. -- Fudoreaper 02:06:16, 2005-08-26 (UTC)

It does not appear that anyone disagrees with me, so i will remove the NPOV dispute warning from the page. It has been more than 24 hours. -- Fudoreaper 06:12:38, 2005-08-28 (UTC)

External Links & NPOV...

I cleaned up the link section... just like Feco a few months ago. It seems the Foreign Exchange pages are often targeten by commercial organisations (see Feco's comments above). Yesterday a new page 'Forex trading' was created, a copy of FOREX, with one link, to GoForex.net. The same anon user then moved the GoForex link (called 'Forex trading') to the top of all the external links at all the FX related pages. This is not Wiki. For anyone who has added links or wants to add more, please read Wikipedia:External links first. Also, can people put these sights on their watchlist to make sure we catch misbehaviour quickly. On a different note, I hope Gerbon689 feels the page is more global now in outlook. ;-) DocendoDiscimus 09:43, 14 September 2005 (UTC)

Indirect Quotation

Indirect Quotation is also known as "Quantity Quotation", not as "Quality" as it was stated before my edit. Canberk Araj--12:42, 10 November 2005 (UTC)

Spam

It is obvious that a number of companies are trying to have their website linked to as the currency converter from this article, I have linked to http://www.xe.com/ucc/ as it is pretty good, and isn't one of the links added by spammers. Please revert any attempt to spam any more links. Martin 16:08, 19 March 2006 (UTC)

After seeing the last hidden switcheroo, I agree with the "It is obvious" I think it is also obvious that for any exchange rate info we should stick to very solid (e.g. the BBC), or official (e.g. the FED) sources. Since both of those are up there already, why do we need any more?

IF people want more sources, I'll suggest Reuters and the Financial Times

Smallbones 06:53, 6 June 2006 (UTC)

Proposed external link

May I suggest that we add the following external link:

Currency converter - exchange rates for 164 currencies

It is not commercial spam. (Actually it's on an accounting web site.) I think in some ways it's better than the other links provided because it covers a wider range of currencies. It claims to have 164. I'm an MBA student and I found this site very helpful. Too many of the other sites only covered the major currencies (USD, GBP, EUR, JPY). Info for emerging markets is important too. Thanks. 71.147.40.103 04:58, 12 October 2006 (UTC)

I'm somewhat against this, only because it opens the door to the remarkably persistent retail forex advertisers on this page. The Reuters site gives about 40 currencies, which must cover 99.9% of the market by volume. There was a good BBC site on here(based on pounds rather than dollars) that has about 25 currencies (about 99.8% of the market). So why do we need a site that has 164 currencies most of which really don't trade. Why do we need to know the conversion of CV Escudos to Angolan Kwanzas given by the site as:

"Thursday, October 12, 2006 1 Angolan Kwanza = 1.09666 Cape Verde Escudo 1 Cape Verde Escudo (CVE) = 0.91186 Angolan Kwanza (AOA)"

I think if anybody really checked into it, this rate is an entirely meaningless number. But maybe there's an arguement for more curriencies. I'll suggest that someone find a non-commercial site if they want to include all the non-traded currencies. Smallbones 08:14, 12 October 2006 (UTC)

I agree the trading volume of Angolan Kwanza vs. Cape Verde Escudo is likely to be an extremely small portion of the overall FX market; however, that doesn't mean that it's not important or useful information. Also criticizing the usefulness of the FX rate between two minor currencies is a flawed argument; the Kwanza vs. USD rate may be very important to the Angolan economy. I think by offering exchange rates for only the most traded currencies, we are biasing the article. Ideally, Wikipedia articles are supposed to be global in perspective. Thank you. 70.131.107.95 18:59, 25 November 2006 (UTC)

I have to convert currency on a daily basis and the preposed link offers interbank or spot rates I have found that Tiscali has a list of tourist rates for the travel sector industry.

I believe providing a few well-established websites that provides current foreign exchange rates would be nice. Yes, there are so many that are commercial. I suggest www.xe.com and www.oanda.com. The link above, which was posted by the very first person, has "user=jimcave" in the url and it makes me wonder if the proceeds from only unrotated ad on that page goes to a single person. Yes, both xe and oanda provides web services for a price. But at least it's not outright "use me for your e-commerce website! buy me!". As for the number of currencies, I think limiting ourselves to a subset of currencies is just unencyclopedic. And I find the 4 existing external links all restricting to the so-called "major" currencies, making them redundant among themselves. It would be nice to provide some sites that provide rates between all currencies. --ChoChoPK (球球PK) (talk | contrib) 03:59, 26 November 2006 (UTC)

I've used the oanda site for several years as it offers historical rates. However, since it now carries adverts, that reduces it's credibility afaic. -- John 17:49, 6 November 2007 (UTC)

The www.oanda.com link appeared and disappeared in this article in November 2006. The www.xe.com is also absent. Wiki-uk 13:48, 25 April 2007 (UTC)

Uncovered interest rate parity

With regards to an earlier edit, UIRP states that currencies with high interest rates should DEpreciate. This is a theoretical relationship. The current trading relationship has led to the reverse situation where currencies with high interest rates appreciate. Finnancier (talk) 12:05, 16 December 2007 (UTC)

Comments please, possible merge with Currency correlation

A debate is in progress about what to do with article Currency correlation and one of the proposals is to merge it into either Currency pair, Technical analysis or Exchange rate. We'd appreciate any suggestions of where the best place for it is. To keep the conversation in one place, please respond in Talk:Currency_correlation#Fallout_of_Wikipedia:Articles_for_deletion.2FCurrency_correlation. Thanks -- John (Daytona2 · talk) 19:58, 12 December 2007 (UTC)

Thanks for the comments, I've requested a deletion review - Wikipedia:Deletion_review#Currency_correlation -- John (Daytona2 · talk) 18:16, 18 December 2007 (UTC)

Additional external link

I want to add the following link: http://www.riksbank.com/templates/Page.aspx?id=27399 —Preceding unsigned comment added by Benjo71 (talk • contribs) 11:35, 8 March 2008 (UTC)

REER

How do you compare REER ? Is higher better ? Is lower better ? DynV (talk) 20:44, 11 February 2009 (UTC)

Way of stating the exchange rate

Per the comments in the majority of the article, majority of economics textbooks, and the actual real-world usage, I restated the definition of nominal exchange rate (and subsequently corrected the formula for RER to match). Previously stated as the amount of domestic currency required for a unit of foreign currency, the reality is that the forex value is generally stated (in most nations) as amount of foreign currency required to buy one unit of local currency. Also, I changed the usage of P^* to P^f, which is more common, and even provides more clarity when using English for the descriptions (as is the case on an English=speaking wikipage. If you have issues with this, please feel free to explain why. Cheers! 98.222.51.12 (talk) 07:07, 11 March 2009 (UTC)

Citation Situation

The article is informative, but needs to be better cited. Is everything from the citations listed? If not, I'll whip out my macro text and start adding citations. Throwaway85 (talk) 08:26, 7 October 2009 (UTC)

Discrepancies between different Currency Converters

The exchange rates on different Currency Converters at a given time are not the same. How does one know which rate is the correct one? Wiki-uk 13:52, 25 April 2007 (UTC)

Currency conversion is an unregulated market and as such there is no absolute value for any exchange rate. Its only worth what someone else is prepared to pay and that is why the value is different depending on whether you are buying or selling, sometimes known as 'the spread'. What most currency converters do, but not all, is to use the mid-rate value (i.e. the average of the buy price and the sell price). This is one reason for the discrepancy. However by far the biggest cause for the discrepency is the frequency at which the prices are updated. If the converter is only updated once a day then it is effectively useless as any big financial news will set the exchange rates in motion (especially an interest rate change). So, if you want to use a currency converter then you are better off using one that has regular updates throughout the day. The Money Converter has round-the-clock updates every 5 minutes or so and uses the mid-rate value. (While I'm here, any chance of getting a link for this site onto the wiki page would be appreciated - see Proposed Link Section).79.73.180.81 (talk) 13:10, 16 December 2007 (UTC)

A proposal for a link to a site where currencies can be converted online. It is free and available in several languages. One option is a calculator with all the eurozone countries on one page. The currencies are automatically retreived from the ECB. A direct link is available to the English version: Free online eurocalculator —Preceding unsigned comment added by 213.207.120.150 (talk) 09:17, 1 March 2010 (UTC)

2 flaws/errors in first content paragraph

I won'T going into detail, as I just refuse to spent more time on such ballyhoo as one could see in the markets. But in the first paragraph of the content is one flaw and one error.

It could all be so simple, but obviously too many super clever idiots have messed up that whole topic in the politics.

I only say using "/" in "Eur/USD" but not meaning it as divide but as mathematically spoken $/Euro. What a crap.

And the other political dumb decision is to only write one form nowadays, instead of giving both numbers $/Euro and Euro/$. —Preceding unsigned comment added by 77.12.43.162 (talk) 01:48, 10 May 2010 (UTC)

Possible Related Link?

Exchange rates daily from the ECB (The European Central Bank) & exchange rate converter. —Preceding unsigned comment added by Chitau (talk • contribs) 15:29, 3 November 2010 (UTC)

Great resource for tracking the latest currency exchange rates - http://www.thecurrencygraph.com/ - Anyone agree? —Preceding unsigned comment added by 82.43.136.181 (talk) 08:53, 22 October 2010 (UTC)

I also have a link open for discussion. *commodities and currencies squared Alesander (talk) 15:54, 26 October 2010 (UTC)

A very cool exchange rate converter http://payzaar.com/ 7or11 (talk) 12:05, 11 November 2010 (UTC)

Ankitchkt's recent edits

I reverted a series of edits by Ankitchkt. These edits appear to be incoherent and do not cite any sources. There was one edit which deleted a source's author's first and last name and changed the title - if the title was incorrect, we can go back and correct it.

This edit [1] is quite irrelevant to the section. It's kind of obvious and there are already external links from the article to places where readers can find out about resources online and offline. These edits [2] and [3] appear to try and cite the content addition, but the source is just a business, so this seems like an indirect attempt to promote that business.

This edit [4] is unsourced original research written from a particular point of view. I know people hold such views, but we can't give them undue weight, and the part of the edit that says "but until now no one could give clear evidence in their support" fails to describe or cite such "evidence." John Shandy` • talk 08:35, 23 February 2012 (UTC)

(nominal/real) Effective Exchange Rate

Doesn't this article lack an explanation of the effective exchange rate? Taalib 16:45, 06 Nov 2007 (UTC)

It most certainly does. "Real exchange rate" redirects here. If no-one includes the relevant info here, I'm going to remove the redirect so that "Real exchange rate" becomes the redlink. 198.49.180.40 18:27, 14 November 2007 (UTC)

On what WP grounds ? -- John (Daytona2 · talk) 19:21, 14 November 2007 (UTC)

Just added. effective vs. bilateral and real vs. norminal. Jackzhp (talk) 22:23, 20 March 2008 (UTC)

There's no nominal vs. real in this article, that's for sure (although most certainly should be). Along with the real exchange rate formula, ε = e × (P/P*) SchumiChamp (talk) 18:53, 22 May 2012 (UTC)

Currency speculators?

"It has been argued that currency speculation can undermine real economic growth, in particular since large currency speculators may deliberately create downward pressure on a currency in order to force that central bank to sell their currency to keep it stable (once this happens, the speculator can buy the currency back from the bank at a lower price, close out their position, and thereby take a profit)."

Did no one see any problem in the above quote? Downward press on a currency -> it becomes weaker -> the central bank would BUY (not sell) to make its currency stable! —Preceding unsigned comment added by Martinlamkc (talk • contribs) 07:05, 21 May 2010 (UTC)

—Preceding unsigned comment added by 80.188.6.1 (talk) 22:05, 24 May 2010 (UTC)

2.5 years later, I made the obvious edits, but it's still uncited and poorly explained. I'm unqualified to take it further. Help please.

173.25.54.191 (talk) 18:56, 19 December 2012 (UTC)

Is this a valid resource to add to the page?

Hello all, Newbie here.

I wanted to add the following link http://moneytransfercomparison.com/how-economy-impacts-currencies/ to the list of resources on the page. I thought it is spot on. The article explains in a plain language how different economical factors affect the currency exchange rates. It has little to no commercial intent and appears to be fitting to Wikipedia's guidelines. The author seems credible and identified by name.

With that being said, I appreciate the Wikipedia project very much, and by no means intend to do something wrong on unhelpful. I rushed to add the link into the list of resources but encountered a warning on the page, that prior to adding any links, I should use the "Talk" functionality.

So, here I am.

46.116.247.1 (talk) 23:48, 14 December 2014 (UTC)

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Quotation

Hi, the paragraph about quotation has to be rewritten, but I dont want to overwrite somebody else's stuff. So, since I'm still new, how do you handle this? Overwriting and waiting what happens or discussion?

Cheers a random user...

Welcome to Wikipedia. Be bold to editing. Anything you edit can always be reverted if necessary.

Roadrunner 19:01, 9 Jun 2004 (UTC)

Rewritten to remove contradiction & to agree with [5]. But does anyone use 'price currency' and 'unit currency' outside Wikipedia? Andy G 22:34, 15 Dec 2004 (UTC)

The last paragraph says "quotes are given with 5 digits", but the examples given in the same paragraph are with 6 digits ("1.33866"). This seems inconsistent, but I do not know which one is correct (and no time right now to find out, sorry). Lennart A 06:08, 15 August 2007 (UTC)

Something is wrong with the paragraph after direct and indirect quotations are explained. Either it refers to indirect quotation (NOT direct quotation) or direct and indirect quotation are reversed above. Mopao (talk) 09:53, 2 April 2008 (UTC)

Agreed. I've compared with the provided link, and while the definitions of quotations are right, the paragraph about appreciation/depreciation is wrong. I've fixed that, please review - that's terribly confusing! (Anonymous) —Preceding unsigned comment added by 86.68.182.95 (talk) 14:40, 10 May 2009 (UTC)

Actually, that sentence was right. The problem was in the paragraph before the definitions, which did not explain what country's point of view was used. —Preceding unsigned comment added by 86.68.182.95 (talk) 16:12, 11 May 2009 (UTC)

Hi, I didn't understand the following sentence: "Cyprus and Malta, which were quoted as the base[clarification needed] to the USD and others, were recently removed from this list when they joined the Eurozone." Can somebody elaborate or provide a citation? In any case, I removed the weird sentence about the order of the currencies because it is impossible to generalize the order of currencies throughout the world. --HappyHippo1990 (talk) 07:59, 22 March 2020 (UTC)

Inviting editors to the discussion

I've posted RFC to reach concensus for currency.wiki here https://en.wikipedia.org/wiki/Template_talk:Exchange_rate

Thank you, Henryguide (talk) 01:00, 26 March 2020 (UTC)

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