US Dollar Impact on Your Life? - News Interns: Economic , International , Ranking, Pakistan News


Tuesday, July 9, 2019

US Dollar Impact on Your Life?

US Dollar Impact on Your Life?

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Impact of Dollar on your Life. In this 21 century, every country is using a medium for exchanging goods and services called its Currency. The dollar is also a currency, it is used in the U.S. But on the other side its also playing the role of Money.

Before going in detail let me differentiate Money and Currency. Currency is the medium of exchange used for purchasing goods and services. Usually, it is also known as paper money and token money. Whereas the money is the worth consisting item which has an actual value of exchange without any token i.e Gold, Silver, Diamonds. Now come to the point, Dollar is basically the American currency in which American people buy and exchange goods and services. But on the other side picture is totally different. U.S Dollar is also acting as a medium of currency in which all countries of the World sell and purchase the goods and services among different countries internationally. 189 Countries across the globe are using it as a medium of exchange on the international level. So, ultimately this agreement converted American Dollar from currency to money itself. Countries are doing trade, getting loans, and aids in the form of dollars. That’s why this article is important to know the impacts of U.S Dollar in your little 60 years life. This article will also reveal to you how U.S Dollar is influencing your own 9 to 5 life.

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We all consume different goods and services for 24 hours a day. We take an egg in breakfastEgg comes from HenHen ate foodFood comes from FeedsFeeds are prepared in machinesMachines are made up of different Basic Raw Materials and the Basic Raw Materials are prepared by Nature. At every single stage, it requires cost, time and patience. But hereby neglecting time and patience we’ll just talk about cost. Cost is paid in currency and as we know U.S Dollar is the father of all currencies. So, the point is any single fluctuation in the price of the dollar will swing your personal life as well. By bringing the change in the prices. Any increase in the value of dollar will at the end of the day bring an increase in the prices of things you bought. However, it affects your life in 2 dimensions (2D).
a) If the prices of imported raw material will increase it will furthermore lead to an increase in per-unit cost of the product which you are consuming.
b) Increase in dollar will lead to a surge in the price of Finished Imported goods.

 2) Study:
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Usually, students go in educational institutions to get education. From Pre-school to Primary, Primary school to Secondary and then furthermore till university. As per the UNESCO Report 2018, just within the year 2016 about 4.8 Million students went abroad for higher education. For this purpose, students exchange their local currency into the currency of that particular country where they’re going. In this regards, the exchange rate of USD Dollars consists of significant importance. A country with better USD Dollar reserves will absolutely let its more students go across the Globe with fewer hurdles.

3)Standard of living:
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Well, till now you could understand the impacts of Usd Dollars in your life but this point is a critical one. First, try to grasp the theme behind. This heading is only applicable for undeveloped or initially developing states. As dollar rise in those countries the standard of living falls badly and vice virsa. The reason behind is because of their dependence on imported finished goods or raw materials. If you look at the coin from the other side, the country with no or less local industries is on the hit of the dollar. They highly depend upon the exchange rates of dollar and the living standard as well.

In this way, US Dollar having its impacts on every person's life across the globe.