Recent content by nooty

Can you explain that further please?

a very nice answer, but that was mostly explaining why Saudi sells oil in dollars. My question was why oil based economies like Saudi need to PEG to the dollar.

so what are the benefits from pegging exactly?

Why must oil exporting nations peg their currency to the dollar? What are the reasons they have to do this?

Thank you.

"China buys US Treasuries with her trade surplus dollars." What I don't understand is, Chinese exporters are the ones receiving the dollars, not the Chinese government or Chinese central bank. So arent the surplus dollars going to the hands of the Chinese private owners of the export...

Why does inflation increase in a fast-growing economy?

Why does this happen?

How and why does a trade deficit cause the currency to lose value?

So how can I, in a foreign country, take advantage of this? What are the different ways of investing ?