Currency volatility basically refers to the unpredictable change in the rates of the foreign
exchange market. This can also be termed as the FX volatility or foreign exchange. The
fact that the value or the rate of several materials such as gold, money rates, oil, petrol,
diesel, bitcoin, etc. vary from place to place or from country to country cannot be
denied. Thus, this is where the currency volatility takes a room. The rates of these
materials vary from country to country and this is clearly shown on the daily updates of
these materials in the international market stock exchange. The foreign exchange
market changes the rates of these materials depending upon the consumption, reach,
etc.
What are the important points of the G20 summit?
The G20 summit or the Group Of Twenty summit is an international forum wherein the
government and the central banks from 19 countries and the European Union sit
together to discuss international affairs. Thus, the important points discussed related to
the currency volatility in the recent G20 summit have a huge impact on foreign
exchange. Few of the points are discussed below:
When the President of America, Donald Trump announced the plans to increase
traffic, it was a clear indication that the currency volatility will be stirred.
The trade war going on between China and America will also play a very
important role in the same.
The rate of the Chinese Yuan against the American Dollar will depreciate hugely.
The news that the American president will no longer pursue levying an additional
tax on China will act as a catalyst in the present scenario.
All these actions will directly cause a huge impact on the yuan currency volatility
and this will result in the foreign exchange volatility.
The G20 summit was held in Osaka, Japan. This summit has 19 countries and the
European Union together at one international platform where the member countries
are allowed to discuss their international concerns. The issues are discussed and tried to
solve in the session. This gives rise to various issues that are of international interest.
The most important of them being the currency volatility. There are many
announcements and judgements made in the session that has a very long term effect on
these volatilities. The price or the rates of various materials or the bitcoins haven an impact on them. the rates might vary from time to time. They increase r depreciate in
comparison to the earlier ones.
The trade wars that go on between countries also have an impact on the currency
volatilities as the levying of the taxes play an important role. Therefore, the very recent
trade war the whole world is experiencing is between China and America. Wherein,
America has an upper hand and this results in the rate of the Chinese Yuan to get
depleted against the American Dollar. This is one of the examples of the currency
volatility that takes place around the globe.
