The phenomenon of economic globalism has affected the financial and monetary systems and policies of countries; the domination of US dollar is a good example of “economic globalism”. US currency is recognized as international banknote, it becomes more important than ”Gold” the international trade depends on dollar, the prices of oil linked to dollar the evaluation of all the precious objects were calculated in dollars.
The currency exchange rates of dollars fluctuate from country to other, according the economic situation and financial process. In some countries the rate exchange didn’t change or move since the last three decades, in others it changes from time to time, what are the reasons that make national currency deteriorates before US dollar.
According to economic experts, basic reasons affect the fluctuation of US currency in many countries, the trade movements of countries has impact on the prices of the currencies, the more you export products, the more you earn foreign currency, also the capital movement which means the influx of capitals from outside as an investment projects as well as the moving of the internal capitals to invest outside.
The stock exchange operation, which indicates to business activities in the country that reflects on the currency exchange rate and affect the movement of imports and exports, regionally and internationally.
But the most significant cause is money transaction and banking operation, the good international relations of the national banks contribute to balance the hard currency prices, even the remittances of the expatriates affects by the banking operation and transaction, the case of Sudanese Banking System which impacted by the US economic sanction imposed in 1997.
Also the fluctuation of rates exchange has ties with monetary policy of the countries, to provide supply fund and to protect the value of the “National” currency.
Despite all those reasons, the political conditions of the countries play a major role in foreign currency demand and supply; the instability causes flying of national capitals and reduces the volume of the foreign investment; during the war and conflicts businessmen and companies use “dollar” to preserve their capitals due to the deterioration of the national currency price.
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