World Currencies React to Trump's Victory

Major currencies from around the world fluctuated like no other as Donald Trump was elected the new president of the United States. Some fluctuated in a positive manor while others created a negative situation.

The Mexican peso's value decreased almost eight percent when the news broke. This decrease was caused by Trump's plans for Mexico, such as eliminating NAFTA and lowering corporate taxes to bring jobs back to America. This would decrease their value because without NAFTA, Mexico will start having to pay the United States much more in tariffs and fees while losing jobs to the United States would hurt the economy.

Russia's ruble was on the other side of the spectrum, increasing 0.4%, not much but enough to make a  significant impact. Russia saw this because Trump has promised to improve ties with Russia and to become much tougher on China and Japan, two of Russia's key competitors. Better relations with Russia would lead to the flow of more goods and services while cracking down on China and Japan would limit their production, only to help increase Russia's production.

My overall view on Trump winning the elections and the world's economy is positive. I truly believe Trump will set laws and policies that will only encourage businesses to thrive, such as lowering the corporate tax rate. His policies will also help the US economy because his plans of going after China and Japan will make them pair their fair share instead of letting them take advantage of us like previous presidents.


Mozee, C (2016, November 9). Dollar gain in postelection trading, peso hits record low. Market Watch.
            Retrieved from http://www.marketwatch.com/story/dollar-mexican-peso-drop-as-trump-  
           secures-us-presidency-2016-11-09

Pakistan is on the Rise, Somewhat

Renault, a French auto manufacturer, recently announced that they would be investing in a new manufacturing plant located in Pakistan. This comes shortly after Pakistan's Finance Minister Ishaq Dar traveled to France to meet with Renault executives, promising that investments within Pakistan would lead to a strong decrease on import duties, making the whole process much cheaper for Renault (Reuters, 2016).

 Pakistan is also currently in talks with many other nations and auto companies, such as Nissan, Fiat and Volkswagen, about investing in Pakistan, but many investors believe the risks within Pakistan are way too high. Two key problems include a very unstable government and a constant threat from radical groups such as the Taliban (Reuters, 2016).

The presence of Taliban in Pakistan is one main reason why the Pakistani economy is behind today, simply because people are scared to be there. This really is too bad because Pakistan has a market of around 200 million people, but the majority of these people are being blocked from the world market because of the Taliban. The Taliban must be whipped out to save lives, but also to allow Pakistan's huge economy reach its potential. Once this market is finally opened to our world, the number of jobs that will be created will be endless.

Reuters (2016). Pakistan says renault agrees to invest in local car plant. The Economic Times.
         Retrieved from: http://economictimes.indiatimes.com/news/international/business/pakistan-says-   renault-agrees-to-invest-in-local-car-    plant/articleshow/55230894.cms