International Finance Course project Essay Example | Topics and Well Written Essays - 750 words

International Finance Course project - Essay Example This write-up will look into among other things, the motivation behind the introduction of the URR, Impact of URR provision on the exchange rate of Thai Baht, impact of URR on Thai financial markets and finally impact of URR on neighboring financial markets such as Malaysia, Philippine, Singapore and Korea. Motivation behind introducing the URR provision The motivation, according to the Ministry of Foreign Affairs, Kingdom of Thailand (2008) was the need to â€Å"deter short-term capital inflows.† Simply put, the Unremunerated Reserve Requirement was motivated by the need to discourage people; particularly investors from undertaking short-term investments that only bring about short-term capital inflows. The Deardorffs' Glossary of International Economics (2010) notes that short-term capital flows are â€Å"of interest because such capital flows are likely to be very liquid and therefore easily reversed and sources of instability in exchange markets.† This is to say tha t the Thai government was motivated by the need to ensure that investments undertaken in the country through the country's banks and other financial institution were going to be long-term and trustworthy for solid future benefits. This is because short-term investments hardly yield any fruitful benefits for the growth of the country's economy. Impact of URR provision on the exchange rate of Thai Baht with other major currencies such as US$ and local currencies The Unremunerated Reserve Requirement is believed to impact on the exchange rate of the Thai Baht by ensuring stability and growth of the currency as against other major currencies. This is because as the Ministry of Foreign Affairs, Kingdom of Thailand, (2008) notes, the URR will lessen the pressure of Baht speculation rather become instrumental in â€Å"ensuring the Baht stability and its movement more in line with regional currencies.† Such stability against major currencies is assured because there would no longer b e extreme volatility of the Thai Baht: a situation that causes long term economic instability (Ministry of Foreign Affairs, Kingdom of Thailand, 2008). The stability of the currency would also be achieved because the Bank of Thailand will â€Å"buy up the incoming dollars and other major currencies† (Bangkok Post, 2010). As a matter of fact, the growth of the currency of any country is of prime interest to the economic and finance planners of that country. This is because with the growth of a particular country's currency, investors and business personnels in that country are put in a better position to competing in global and international trade without fear of rampant foreign exchange rates. The government on the whole also benefits because it is put in a better position to compete globally and economic growth and stability is assured. For instance with a very stable currency, the government is not put in a position where it has to spend so much local currency in a bid to u ndertake foreign trade because of the weak value of the government's trading currency. It is against this background that the government introduced the Unremunerated Reserve Requirement. In two Graphs below represents the monthly exchange rate for the years 2005 when the URR was not in force and 2011 after the URR had been in force. Figure 1: 2005 Average Monthly Exchange Rate for US Dollar Against the Thai Baht from January to

Leonardo da Vinci's painting, Annunciation Term Paper

Leonardo da Vinci's painting, Annunciation - Term Paper Example Leonardo is believed to have been merely twenty years when he did this painting that today stands as one major artwork done in the olden days. The major influence he received from artists such as Sandro Botticelli made him become a better painter by relating and modifying his artwork with ideas borrowed from the renaissance period. How the painting on the annunciation was done is somehow composed of a number of styles that are borrowed from the early renaissance period meaning that Leonardo was still learning from previous works done by past artists. The Annunciation simply means announcement and in this painting done by Da Vinci angel Gabriel is simply announcing to Mary the good news that she will be the mother Jesus. The story of Mary being visited by angel Gabriel is evident in the annunciation painting. Gabriel kneels in the garden of Mary the virgin to inform him that she would bear a son and the son will be named â€Å"son of man†. Gabriel holds a lily to show how pure Mary was. The background depicts a beautiful environment. The kneeling angel is seen youthful, stylish wings, rich clothing, and having a lily at his right hand. The virgin on the other hand shows astonishment probably due to the news she has received from angel Gabriel. Her pose gives her a monumental character and defines the kind of person Mary is, some say he is cold as per what they see in the image. Da Vinci painted the most imaginary wings of an angel that somehow seemed alive in his painting, the annunciation painting.