What Is Tapering and how does it affect the market?

 

 ndbs quality redefined line          facebook logo   


 Amanda Schoeman, Germiston, SA

I noticed the fall of Rand in January blamed on US Tapering.  Can you please explain what it means and how does it affect the market.

Posted: February 24 2014

  NDBS Answer:

Tapering is a gradual winding down of central bank activities used to improve the conditions for economic growth, such activities can mean reducing bond buying programmes. Tapering activities is primarily aimed at interest rates and investor expectations of what those rates will be in the future. These can include conventional central bank activities, such as adjusting the discount rate or reserve requirements, or more unconventional ones, such as quantitative easing.  This affects emerging markets as the more US cut on spending the inflow of Dollar to emerging market slows down and investors start observing instead of buying shares and to extreme they sell their shares in stock exchange affecting the country's currency. 

ad let us interview you in red


Frequently Asked Questions (FAQs):


What is The Difference Between Repo Rate And Prime Rate?

Must I Sue The Previous Owner For Not Disclosing The Leaking Roof?

Am I Not Suppose To Know My Partner's Business Dealings?

What Percentage Of My Salary Must I Spend On Car Installment?

What Is Selenium?

What Is Credit Amnesty?

What Are FICA Documents?

What Is A Plentiorologist Or Pentierologist?

What Is The Highest Amount One Can Claim Through Small Claims Court In South Africa?

Can I Take My Business Partner To Small Claims Court?

What Is The Difference Between BEE And BBBEE?

At What Percentage Does Value Of  A Car Depreciate In South Africa?

What Is The Difference Between Stakeholders and Shareholders?

What Is A Two Tier System?

How Are Points Determined On Stock Exchange?

What Is Contingency Fee?

Why Are E-Tolls Called Gamtries Or Gumtrees?

What Is The Difference Between Macro and Micro Economic Policies?

What Is The Link Between Khula, SEFA, IDC and The Banks?

I heard Of One Company Director going on Sabbatical Leave, What Does It Mean?

What Is The Difference Between National Health Insurance In South Africa And Obamacare In USA?

What Is The Difference Between SATRIX And JSE?  Can One Buy Shares Directly From JSE Without Via SATRIX?

Can The BAnk Reposses My Assets That I acquired Before Borrowing Their Money Than I am Failing To Pay back?

How Long Does It Take For Money transferred Via Internet (EFT) From One bank to another To Show in One's Account?

What Is Remittance In Business?

Do Law Firms Provide PRO BONO Services To Entrepreneurs?

Money Is Taken From My Account Without My Authorisation, What Must I Do?

What Does It Mean By US Government Shutdown?

What Is Palladium Used For And How Valuable Is It?

 

Click For More FAQs

 

 

 

 

 

 

 

 

 

 Breaking Business News

 Entrepreneurologist

Top Asked Questions:  

  What Determines Petrol Price in SA

  Procedure To Follow When                             Registerning Company In SA

 

 

Are you looking for the best web hosting? Be a smart buyer and read hosting reviews before choosing a suitable host.

      New DiscoveryBS (Pty) Ltd ©2011-2015  Terms Of Usel NewsBrand Engage l Advisory-Mentorship l Events l NDBS Services l NDBS FAQs l Contact Us l back to top button

                                                                                                                               Content Management and Designs Proudly Done Inhouse By: New DiscoveryBS

 

             

Joomla Themes designed by Joomla Hosting Reviews