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Gillespie: Foundations of Economics

Unit 30

Currency values
To find out the current or historic value of any currency visit
www.x-rates.com/

Euro
To find out more about the issues involved in the UK joining the euro why not read this survey published by The Guardian newspaper
www.guardian.co.uk/euro/0,,606524,00.html

Weak dollar
At the end of 2006 and start of 2007 the pound was very strong against the dollar. To find out more about the causes and consequences of this visit
news.bbc.co.uk/1/hi/business/6158897.stm

Thailand: the value of the baht
The volatility of share prices was seen in Thailand at the end of 2006. Increased foreign investment into Thailand had increased demand for the Thai currency, the baht, and led to an appreciation of the currency. The baht hit a 9 year high in December 2006. To prevent further appreciation the Thai government introduced regulations that controlled foreign investment; for example, all foreign investments over $20,000 had to stay within the economy for at least a year. This immediately deterred investment into Thailand and affected demand for Thai shares. As a result shares suffered their worst daily fall in 16 years and closed down 14.8%. The Thai authorities responded by reversing their regulations. More about this story can be found at
news.bbc.co.uk/1/hi/business/6192157.stm