Question

In the following table, provide exchange rates between The Netherlands currency and the U.S. dollar (US$). Please use indirect quote (for example: US$1 = CF900). This information can be found through internet data research.

Table 1. Netherlands’ exchange rates*

Years	Exchange rates	% change
2008		N/A
2009
2010
2011
2012
2013
2014
2015
2016
2017

                        * Provide the exchange rates for the last business day of each year

            In five to seven sentences, discuss what the data tells you about your country’s currency

Answer 1

The currency used in Netherlands is Euro. The exchange rates of Netherlands Euro and US dollars during 2008-2017 are shown in the following table:

Year	Exchange rates	% change
2008	1.47	N/A
2009	1.39	-5.44
2010	1.33	-4.31
2011	1.39	4.51
2012	1.28	-7.91
2013	1.33	3.90
2014	1.33	0
2015	1.11	-16.54
2016	1.11	0
2017	1.13	1.80

From the above table, it appears that Netherlands Euro currency was strongest in 2008 and then it continued to decline afterwards. The Exchange rate of Euro to US dollar remained unchanged only for two years i.e., 2013-2014 and 2015-2016. The Exchange rate of Euro to US dollar remained 1.39 during 2009 and 2011. The highest percentage change in Exchange rate was in 2015. The devaluation of a domestic currency in the international market may be due to multiple factors such as unfavorable balance of trade with foreign countries, recession in domestic economy and unfair trade practices of some countries.