EXCHANGE RATE

Exchange Rate

Exchange Rate

Introduction

The factors affecting the currency markets, increased market volatility due to the characteristics that single out today are: freedom of capital movements, the speed of transactions, the existence of a wide range of financial assets, and the importance institutional investment. The foreign exchange market involves the exchange system which is influenced by supply and demand of foreign exchange in this investigation is defined exchange rate, the factors affecting supply and demand for currency, the foreign exchange market, modalities or exchange rates, changes in parity and exchange control.

Climate effect on agriculture and its policy

“Climate change will affect agriculture, forestry and fisheries in complex ways, both positive as well as negative,” the first quarter 2010 agriculture update says. One aspect of the change will be a rise in global carbon dioxide concentrations in the atmosphere from 350 ppm to over 400 ppm by 2030. “Here,” the update says, “global warming may bring benefits for agriculture. The areas suitable for cropping will expand, the length of the growing period will increase, the costs of overwintering livestock will fall, crop yields will improve and forests may grow faster.” On the other hand, the report acknowledges that such gains as may accrue to the agricultural sector arising out of global warming must be set against the loss of fertile land to flooding, particularly in coastal areas. Reduced soil moisture levels in less well-watered areas, especially in the tropics, will render large areas unsuitable for cropping and some tropical grass lands may become increasingly arid. At the same time, “temperature rise will also expand the range of many agricultural pests and increase the ability of the pest population,” while, “in oceans, temperature rise may reduce plankton growth, bleach coral reefs and disrupt fish breeding and feeding patterns.”

The fact that agriculture is a major source of greenhouse gas emissions and is also responsible for up to half of all methane emissions, is also a challenge for a country which, for all its developmental aspirations that revolve around industrialization, oil production and an expanded manufacturing sector still regards agriculture as the bedrock of the country's economy. Rice farming, the agricultural product, which perhaps more than any other, has earned the country its 'bread basket' image, is (apart from livestock), “the other main agricultural source of methane, accounting for about one-fifth of total anthropogenic emissions”. And while the Ministry of Agriculture's update says that “emissions may grow more slowly because an increasing share of rice will be grown with better-controlled irrigation,” the point needs to be made that expanded rice cultivation and the expansion of the livestock industry are very much part of the grand design for the agricultural sector.

While there appears to be little concern that climate change will depress global food availability significantly, if at all, over the next three decades, there is, on the other hand, the likelihood that at least in some developing countries there may be increased need for security among vulnerable groups. Another concern that will arise in Guyana's case is ...