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Floating Rates - Forex

 


 

Floating Rates Versus Fixed Rates
Reem Heakal

Did you know that the foreign exchange market (also referred to as FX or forex) is the largest market in the planet? In fact, over $one trillion is traded in the currency markets every day. This article is definitely not a primer for currency trading, but it will help you understand exchange rates and why some fluctuate whereas others do not.

What Is an Exchange Rate?
An exchange rate is the rate at that one currency can be exchanged for an additional. In other words, it is the price of another country's currency compared to that of your own. If you're traveling to a different country, you would like to "obtain" the local currency. Simply like the price of any asset, the exchange rate is the worth at that you'll be able to obtain that currency. If you're traveling to Egypt, as an example, and therefore the exchange rate for USD 1.00 is EGP 5.fifty, this implies that for each U.S. dollar, you can buy five and a [*fr1] Egyptian pounds. Theoretically, identical assets should sell at the identical worth in several countries, as a result of the exchange rate must maintain the inherent price of 1 currency against the opposite.

Mounted
There are 2 ways in which the value of a currency can be determined against another. A mounted, or pegged, rate could be a rate the govt (central bank) sets and maintains because the official exchange rate. A set worth will be determined against a major world currency (usually the U.S. dollar, but additionally other major currencies like the euro, the yen, or a basket of currencies). In order to maintain the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market in return for the currency to which it is pegged.

If, for instance, it is determined that the value of a single unit of local currency is equal to USD three.0zero, the central bank can have to make sure that it can offer the market with those bucks. In order to keep up the rate, the central bank should keep a high level of foreign reserves. This could be a reserved quantity of foreign currency held by the central bank that it can use to unleash (or absorb) additional funds into (or out of) the market. This ensures an appropriate money supply, applicable fluctuations within the market (inflation/deflation), and ultimately, the exchange rate. The central bank can additionally regulate the official exchange rate when necessary.

Floating
Unlike the fastened rate, a floating exchange rate is set by the non-public market through provide and demand. A floating rate is typically termed "self-correcting", as any differences in provide and demand will automatically be corrected in the market. Take a look at this simplified model: if demand for a currency is low, its worth will decrease, thus creating imported product a lot of expensive and therefore stimulating demand for local goods and services. This in turn can generate additional jobs, and hence an auto-correction would occur in the market. A floating exchange rate is constantly changing.

In reality, no currency is wholly fastened or floating. In a fixed regime, market pressures will conjointly influence changes within the exchange rate. Typically, when a local currency does mirror its true worth against its pegged currency, a "black market" which is more reflective of actual offer and demand could develop. A central bank will often then be forced to revalue or devalue the official rate so that the speed is per the unofficial one, thereby halting the activity of the black market.

In a very floating regime, the central bank could additionally intervene when it is necessary to ensure stability and to avoid inflation; but, it is less usually that the central bank of a floating regime will interfere.

The planet Once Pegged
Between 1870 and 1914, there was a global mounted exchange rate. Currencies were linked to gold, which means that the price of a native currency was fastened at a group exchange rate to gold ounces. This was known as the gold customary. This allowed for unrestricted capital mobility plus world stability in currencies and trade; but, with the start of World War I, the gold standard was abandoned.

At the tip of World War II, the conference at Bretton Woods, in a shot to get global economic stability and increased volumes of world trade, established the essential rules and regulations governing international exchange. As such, a world monetary system, embodied within the International Monetary Fund (IMF), was established to push foreign trade and to take care of the monetary stability of nations and therefore that of the world economy

It had been agreed that currencies would once again be mounted, or pegged, but now to the U.S. dollar, which in flip was pegged to gold at USD thirty five/ounce. What this meant was that the price of a currency was directly linked with the worth of the U.S. greenback. So if you needed to shop for Japanese yen, the value of the yen would be expressed in U.S. bucks, whose value in turn was firm within the value of gold. If a country required to readjust the value of its currency, it may approach the IMF to regulate the pegged worth of its currency. The peg was maintained till 1971, when the U.S. dollar could now not hold the price of the pegged rate of USD thirty five/ounce of gold.

From then on, major governments adopted a floating system, and all makes an attempt to move back to a world peg were eventually abandoned in 1985. Since then, no major economies have gone back to a peg, and the use of gold as a peg has been utterly abandoned.

Why Peg?
The reasons to peg a currency are linked to stability. Especially in nowadays's developing nations, a country might decide to peg its currency to create a stable atmosphere for foreign investment. With a peg the investor can invariably know what his/her investment worth is, and therefore can not have to worry regarding daily fluctuations. A pegged currency will also facilitate to lower inflation rates and generate demand, which results from bigger confidence in the soundness of the currency.

Fastened regimes, but, can usually cause severe money crises since a peg is troublesome to maintain in the future. This was seen in the Mexican (1995), Asian and Russian (1997) money crises: an try to maintain a high worth of the native currency to the peg resulted in the currencies eventually turning into overvalued. This meant that the governments might no longer meet the strain to convert the local currency into the foreign currency at the pegged rate. With speculation and panic, investors scrambled to urge out their money and convert it into foreign currency before the local currency was devalued against the peg; foreign reserve provides eventually became depleted. In Mexico's case, the government was forced to devalue the peso by thirty%. In Thailand, the govt eventually had to permit the currency to float, and by the top of 1997, the bhat had lost its value by fifty% because the market's demand and supply readjusted the price of the local currency.

Countries with pegs are usually related to having unsophisticated capital markets and weak regulating institutions. The peg is thus there to assist create stability in such an setting. It takes a stronger system in addition to a mature market to maintain a float. When a rustic is forced to devalue its currency, it's also needed to proceed with some type of economic reform, like implementing larger transparency, in an effort to strengthen its money institutions.

Some governments could select to own a "floating," or "crawling" peg, whereby the govt reassesses the price of the peg periodically and then changes the peg rate accordingly. Usually the amendment is devaluation, however one that is controlled thus that market panic is avoided. This methodology is typically used in the transition from a peg to a floating regime, and it permits the government to "save face" by not being forced to devalue in an uncontrollable crisis.

Although the peg has worked in creating international trade and monetary stability, it had been used solely at a time when all the main economies were a half of it. And while a floating regime is not while not its flaws, it's proven to be a additional efficient means that of determining the long term worth of a currency and making equilibrium in the international market.


Article Courtesy:
http://finance.yahoo.
com/education/
currencies/article/
106076/Basic_
concepts_for_
currencies_markets


Currency News

 Forex Rate - Currency News
Forex news and articles about spot Gold prices and oil

Euro Weakness Looking To Hold
by admin
21 May 2012 at 12:33pm
On the Forex markets this morning the Euro around was struggling to regain a foothold beyond the $1.27 area against the Dollar. Staying virtually unchanged from its level on Friday, the dollar at 1.2692 euro (+ 0,08%). A low of 1.2642 dollars was hit this morning, against a peak at 1.2708. No significant movements to report against the ye Read more ...
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by admin
1 May 2012 at 4:41am
Yesterday the euro was down slightly compared to the U.S. dollar, 1.321 to 1.325 dollars compared to last Friday, particularly affected by the disturbing news growing on Spain. The Spanish economy has again contracted by 0.3% in real terms in the first quarter 2012 compared to the last of 2011, according to the National Statistics Institu Read more ...
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24 Apr 2012 at 8:13am
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Euro Mixed Against All Other Majors
by admin
18 Apr 2012 at 7:53am
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Fed Keeps Rates Low ? Euro Seems Without Trend
by admin
14 Mar 2012 at 6:40am
The single European currency remained without a major trend against the U.S. dollar in the wake of a highly anticipated meeting of the Monetary Policy Committee of the Fed, whose tone lately has been quite positive for the Dollar. The Euro dropped yesterday afternoon from 0.04% to 0 Read more ...
Bernanke comments causes sell off
by Tom
1 Mar 2012 at 4:55am
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Euro firm however downside risks remain
by Tom
28 Feb 2012 at 8:36am
Today the euro remains firm versus the dollar and sterling, trading in relatively tight ranges despite the announcement from ratings agency Standard & Poor?s that it is cutting Greece?s long term credit trading to selective default. Such a move was already expected and indeed factored in, though yesterday?s comments from EU Commission Read more ...
Euro upside following Greek deal
by Tom
22 Feb 2012 at 9:34am
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Euro upside following Greek Deal
by Tom
21 Feb 2012 at 9:20am
The euro gained some ground in early morning trade briefly breaking through key resistance after eurozone finance ministers finally sealed the details of a second ?130 billion bailout package for Greece. There was also agreement on the details of Greek?s deal with private sector investors, who are now expected to take a haircut in excess of Read more ...
Euro sold as Greek Deal lingers
by Tom
16 Feb 2012 at 4:35am
The euro started yesterday with a firmer tone on the news that China would continue investing in euro debt and pledges from the Greek opposition Conservative Party to commit to tough austerity measures. This was before the latest twist in the on-going Greek debt saga saw renewed pressure on the single currency, which has fallen back to trade at Read more ...



Convert Currency Highlands

The Holistic Integrated Text for HLL

Integrating the various disciplines into a Whole to motivate Appreciation of life's resources

The Holistic Integrated Text for Holistic Leisure Learning (HLL) provides the learners of ICRA Comprehensive Schools (ICS) with one free textbook for all grades. Its contents are guided by the ICS Exam Guidelines' questions and it is written with increasing language difficulty and explanations to accommodate different grade learners. Learners from Grade 4-9 (GET) can then see the depth of knowledge they need at higher grade levels and in this way accelerate their learning capacity through self-study. The Holistic Integrated Text approaches the content via the self-integrated activity areas of HLL - Nature, People, Languages, Trade, Calculations, Construction, and Micro-& Telescopic. Learners will be able to check whether their answers to the research questions from the ICS Exam Guidelines are correct. The TEXT serves as the memorandum and allows learners to access it online straight from their cell-phones or simply download the full text from the knol for their continuous reference. Their test now is their personal honesty to complete their assignments and research before they look at the answer. This personal honesty test allows them to develop spiritual integrity in their learning process - a Challenge in Islam. It is hoped that all children of the world will benefit from this Knol created for ICS learners

786

The Holistic Integrated Text

for Holistic Leisure Learning Learners

@ ICRA Comprehensive Schools

by: Mogamat Faadiel Arnold (HPTD, B.A. Ph.D.H.C)


NATURE


Energy is the force that moves everything and everyone in the universe. Allah (SWT) Created Energy and therefore people cannot destroy it or create it. It is always there as long as Allah (SWT) wants to Give it to people and the universe. It makes things live, grow, duplicate and change. When everything dies the energy in it changes into different forms of energy that give life to other things.


The Principle of Conservation of Energy: Energy cannot be created nor destroyed, but can be transformed from one form to another.


Nature (land, sea, air, space, animals, insects, mountains etc.) is a large energy source granted to people by Allah (SWT), Who Loves us and wants us to be happy, safe, comfortable, growing and successful. In Nature Allah (SWT) has placed different creations that support each other so that life can continue until He Calls us and everything back to Him.


Sources of Energy where energy is stored and can be released from: The Sun, The Sea, Food, Light, Waves, Combustion(burning), Chemicals, Nucleus, Electrons, Protons, Neutrons, Volcanoes, Wind. Animals-, Insects-, Human bodies. Rocks, Minerals, all things/ substances that have body (can be seen), mass (amount of kilograms), weight (the force it is pulled to the Earth's centre) and volume (the space it occupies) and Biomass (all the rotting substances)


There are different types of Energy each having different characteristics (behaviours) Solar energy (from the sun), Radiant Energy (light), Chemical Energy (in chemicals), Potential Energy (the forces that lie in a substance waiting(dormant) to be freed), Kinetic Energy ( in moving objects/people), Sound Energy (what we, animals and insects can hear), Nuclear Energy (from the nucleus of atoms).


There are Renewable Energies (solar, wind, biomass, nuclear, air, sea tides) and Non-renewable Energies (Fossil fuels-oil, gas, coal; sand, clay, salt, gravel extracted non-metals; re-cyclable metallic extracts from ore rocks with metal in it iron, copper, aluminium, gold)


Some people waste energy. They leave lights on, open hot water taps for every hand-wash, keep heaters on, put one item in dryers etc. Then there are other people who make an effort to save energy: they use energy saving bulbs, put lights on only when they are in a place (although their house is not in general darkness), They use hot-water bottles, blankets, extra clothing to heat themselves. They have solar energy geyser systems.


The Solar (Sun's) Energy is used by plants to make their own food. This is called Photosynthesis It is to combine minerals(Nitrates, Phosphates, Magnesium) and water from the soil, the carbon dioxide (CO2) from the air and the light and heat energy from the sun to make food(starch) in the leaves (factory) of the plant. The plant stores the foods it made in the form of carbohydrates, fats, proteins and glucose(sugars) in different parts of its body. This is why we eat fruit and vegetables to get our needed nutrients(food) and energy. We cannot make our own food, because we have no leaves.We are consumers(eaters of plants and animals) and not producers(plants, the builders of food from the sun's energy)


There are different energies involved in each event: When working: Oxygen is breathed in (mechanical energy), then Gaseous exchange in the lungs (chemical energy), Oxygen in the blood burns up food in the cells to release energy (combustion, chemical, heat energies), energy transported via nerves to the to move the muscles (chemical, kinetic energies) - then work is done.


When a ball is thrown through a window: Chemical energy for food combustion is employed, Heat energy is released. Kinetic energy of the movement of the arm. Potential energy of the arm into the ball. The release of the ball and its movement is Kinetic energy the heat energy breaks the window and the sound energy of the shattered glass can be heard. As the glass falls the kinetic energy of the glass pieces can be seen. All the different energies added up is equal to the energy of the food that was burnt up in the thrower's body.


Car driving in a street: Combustion of the petrol, released a force Mechanical energy that drives the engine parts; the motion of the car is the Kinetic energy created by the potential energy that was released from the petrol.



Electricity is made/ generated by the turning of turbines which through friction build up large/ enormous electrical charges that can be sent through large cables in power stations and then sent through sub-stations
( each breaking the enormous electrical charges into small amounts) until it can be used in homes.



The turbines can be turned using steam when coal is burned (Coal Electricity)/ uranium atoms break up in nuclear power stations (nuclear electricity). Water (hydro-electricity) can also turn the turbines when waves, waterfalls move it, mills also used water to turn the concrete wheel to ground wheat grass into flour. Wood, oil and gas can also be burned to create steam which drives the turbines (propellers on a shaft that create friction which loosen electrons).


Generators are attached to turbines and it captures the electrons turbines loosen and combines them along cables carried on pylons to wires in the homes. 74% of South Africa's electricity is generated/make in coal power stations; 3% in hydro electrical plants, 15% through gas/oil power stations 2% in Nuclear Power stations.


Plants, People and animals also have energy. Plants trap and store energy from the sun into them. Animals and people eat the plants to get their energy. The energy is trapped in the food we eat. It is released by the oxygen we breathe in. The oxygen burns up the food and the energy in it is released.


The released energy in our bodies is used for body movements(locomotion), breathing (Gaseous exchange), digestion (taking in food into the bloodstream), nutrition(eating, chewing food absorbtion), reproduction (having babies), growth, healing, thoughts, learning and all other functions which make people alive. Animals need energy for the same life functions.


When we are bored, our energy is used up by our thoughts of things that would make us happy and the feelings of disappointment of not having it. This drains the body of energy and the body becomes numb and inactive. The person just sits on one spot bored. We say the person is not motivated. Such a person feel down, dejected, heavy, sad and always tired.


Motivation is the opposite of boredom. It is positive thoughts a person has, which release positive energies that make him/her tackle work of play with enthusiasm. This is a feeling of lightness, excitement, eagerness and a sense of achievement that drives him or her to be creative and complete lots of tasks. Such people achieve a lot and these achievements build in them more and more energy. They never seem to get tired.


A food chain is a series of living things and how they eat to get(gain) energy. The first, bottom level of a food chain (trophic(light using) level) is always the plants. The plants and grasses are the producers/ the trappers of sun's energy and the producers of food for themselves, animals and humans. The producers form the largest amount in the trophic level/ food chain. The herbivores (only plant eating animals) are less than the producers, but more than the next level, the carnivores (only meat eating animals/ those that eat the herbivores). The carnivores are less than the herbivores but more than the next level, the Omnivores(those animals and people that eat plants and animals to get all the energy they need. The food chain forms a pyramid with Omnivores at the top and producers at the bottom.


An example of a food chain is : Producers (grass and plants trap the sun's energy and light to produce their own food in the form of carbohydrates), Herbivores (sheep and goats eat grass and get their energy from it), Carnivores (hyenas, foxes eat sheep and goats to get their energy), Omnivores (lions and humans eat sheep, goats, goats, fruit and grass Muslims do not eat carnivores like hyenas and foxes, but other people who live in the wild, do eat them.


Living organisms (animals, insects, plants, humans) need energy for movement (locomotion), nutritions(feeding), excretion (getting rid of waste matter in the body (sweat, urea, excrement, feces), gaseous exchange (breathing), growth, healing, reproduction and all functions that allow it to continue to live healthily.


Ask your parents to give the the slips of electricity they buy for the month. Now add the units and the amounts to calculate the number of units and cost for the month. Try and reduce the use of some of your regular electricity usage and see how much electricity you can save. Normal consumption is R200 for 163 units. This works out to: If R200=163units then Rx=1unit, cross multiply

= (Rx)(163)=(R200)(1)
then x = (200)/divide by 163
= R1, 23 per unit electricity now check your answer 1, 23 x 163 = R200 that's good.



Electricity comes to the homes from a large power station. Eskom generates large electrical charges in the big Mpumalanga Power plant and transports this power (25000 volts) through/via step-up transformers to cables on pylons and via sub-stations to electrical poles in the streets and from its wires into the homes of South Africans and other African countries which Eskom also supplies. This power is then further broken down in your meter box to each plug and light socket via parallel electrical connections.


When creating an electrical power plant model(solar, nuclear, coal, wind, hydro(water) generated power stations) use materials that are inexpensive. Styrofoam used in packaging is good, but you need a sharp knife/ warm wire just be very careful and do it in the presence of adults. The best material to used is box cardboard you can strip it also to make wheels. Wood glue is very good to use when sticking corrugated(box) cardboard.


Energy is needed in homes for lights, appliances, computers, heater and the geyser. The industry need electricity for the machines and their lights and other appliances. Space travels need energy for the rocket boosters and engines.


Resources are materials needed to create products, offer services or enjoyment. Examples of resources are oil, people, wood, diamonds, coal, food, water etc.


South Africa has many resources with which products are made: coal, oil, diamonds, sheep, grasses, fruit, vegetables, uranium, gold, fish, manganese, textiles, sugar cane, copper, tin, titanium, tourism, scenery, diverse cultures, platinum, sand, friendly people, machinery, vanadium, wheat, beef, poultry, phosphates, dairy products, wood, mutton, natural gas, nickel, iron, chromium, manganese, wool, iron.


Our houses must have resources to function effectively(well) cleaning materials, electricity, appliances, computers, water, tools, medicine, clothes, food, drinks, transport, security (locks, doors), windows for fresh air etc.


School resources include: desks, boards, computers, teachers, chalk, white board pens, chairs, laboratories, classrooms, proper buildings, office, storeroom, filing cabinets etc.


Natural Resources can be divided into; Renewable (that can last forever and be used over and over) and Non-renewable(those that are limited. It can be used up. It must be looked after. It must be preserved) resources. Renewable resources include; sun, wind, water, sea tides, plants, animals, fresh air, fertile/good soil. Non-renewable resources include: fossil fuels, coal, gas, oil, sand, clay, salt, gravel, iron, copper, aluminium, gold.


A resource is a means/ a needed thing to make something. A product is a thing which was made out of different resources and it is ready to be sold. A product is a man-made, completed thing ready to use or sell. A resource is a raw material that is needed to make a product. Examples: you need resources such as metal and tools to make a product like a hammer. You need the resources: flour, water, essence, baking trays and a stove to bake a cake the product.


South Africa's water, coal and wild life are non-renewable resources and must be used carefully. If we do not use it sparingly, we will run out of water, coal and animals for food and electricity to use. If we do not look after our resources we will suffer illnesses and can die. Some of the wildlife that are endangered in South Africa are the: riverine rabbit, golden mole, martial eagle, Egyptian vulture, ground hornbill, halfmens, crane, black rhino.

The loss of any resource (oil/ cement/ Carbon dioxide etc.) will result in the stoppage of the production of many products that need the specific resources. This will cause factories to lose sales and profits. These businesses will then close down and the workers of the business will lose their jobs. People who lose their jobs cannot buy food and clothes for their children and cannot pay their rent. The families of the unemployed workers will then be exposed to many hardships even death. You can now see how important it is for people to save and look after natural resources and not to waste water, electricity etc.


If the people of a country waste their resources they will suffer loss of jobs, increase in suffering and crime and loses of lives and a general decline of the country. Other countries that are more powerful will then take over and rule the people who wasted their resources.

When a country does not use its resources properly, it will become weak. Countries who used their resources better will become powerful. The powerful country will then attack the weaker country declare a war and steal the weak county's resources and take the people as prisoners to work for them.



Resources

Products

Steel, iron, bolts, spanners,

Bridges

Cordon dioxide, water, colouring

Cooldrink

Coal, Turbines, generators, wires, pylons

Electricity

Classrooms, books, pens, computers

school

Now create more for this table


Wars are fought to grab resources (including people) of other countries. This happened in Europe (Napoleon, Hitler), South Africa (Dutch, British), China (Japan), Afghanistan, Iraq, Libya (America) and many other countries. Presently the United Nations (Europe and America) are trying to steal the land from Gaddafi's oil rich country - Libya. Europe and America are currently suffering an economic downturn due to the enormous debt of the USA and Europe governments, causing lots of unemployment in their countries that is why they are attacking countries with oil, because free oil/ cheap oil with reduce the expenses for producing products which they can sell at higher prices to make bigger profits for their own people.


People are also resources. They have energy and strengths that allow them to work the lands and machinery of a country. They also have intelligence and skills that allow them to create new products and services which create new businesses and thus increase the number of jobs that can be given to people. The more people plan, work and create the more people earn and the richer the country becomes. This means if productivity of the people is high, the development of the country is secured/great. The more a country develops, the more it grows, the more streets, buildings and businesses it has. The more advance the people are, the better their lifestyle and the more comfortable they are. People are resources when they create, work and manage their natural resources.


The advantage of using or saving resources efficiently/effectively is that the profits/ benefits will increase and the losses will decrease for a person or a nation. If resources are used effectively then it can be used again and again and even be improved as the years go by and people learn more ways of using the same material more effectively through scientific research and application. The re-use of materials/resources so that it can last forever is called sustainability.


Global warming has occurred because people produced so much air pollution with cars, factories, and aircrafts, that the Earth's heat from the sun could not escape. This created an increase in land temperature which caused a global warming of temperature. The soot and pollution in the air (from cars, factories, fires, aeroplanes) also travel to the North Poles and settle on the ice as black powdery debris(waste) called cryoconite. Black Cryoconite absorb from the sun and melts more ice, causing a meltdown of glaziers. The pollution in the air also caused the atmosphere to lose some of its protective ozone layer, which allowed more of the sun's heat and damaging rays to enter the earth. More ice melted at the North Pole , which caused the seas to rise, displaced people, animals and the loss of many industries/ businesses along the coastlines.


Water, clean air, fertile land, human skills, minerals and oil are the most important resources. These resources help people grow and progress. Water is needed for living , food, plant irrigation (watering). Fertile land is needed to grow food. Human skills are needed to create businesses, work in the fields and in companies to create products and services for trade. Trading allows money to flows through the country which creates more business and progress. People skills are also needed to invent new products and services to advance people's lives. Minerals are needed to replace materials or to make new materials. Oil is needed for transport and machinery to keep the economy running and jobs intact. The loss of resources means loss of jobs, income and life.


People can conserve/save, use resources sparingly. Don't waste water. Don't waste electricity. Do not litter. Learn, explore and invent so that resources are used for more than one purpose. Recycle, Re-use and reduce the consumption of products that destroy the environment. Not to waste water is the most crucial act of conservation. Do not pollute in any way. Create gardens and plant trees to reduce the Carbon dioxide in the air (because plants inhale Carbon Dioxide and give off oxygen photosynthesis) . The trees and plants also replace the lost oxygen in the air. Plants refresh air and provide fruit and vegetables as well as new habitat (places to live) for more insects and animals that pollinate fruit and veg plants faster and then more fruits and veg can grow. Planting gardens and trees increase food an health for all people.


Conservation means to look after something carefully so that it can last for generations to come. It is necessary to conserve water, land, clean air, minerals, oil and gas so that people can have good health and jobs so that they can earn from businesses that use the resources to create products and services to trade/ make business.


Some ways to conserve the resources needed for human, animal and plant survival; clean up waste dumps and plant trees and grass. Clean up rivers and keep the water unpolluted. Warn through posters about hazardous waste (dangerous). Report factories that dump waste. Get involved with conservation projects such as cleaning the beaches, tree planting projects, re-cycling paper, plastic, cardboard, metal projects, creating reserves, national parks (where animals and plants and protected from human damage. Use energy(electricity) and water more sparingly. Assist reporting exploitation(damaging/ stealing) of land, animals or trees. Remove alien(plants from other countries) that kill indigenous (South African) plants.

Protecting the Wetlands (where water animals and plants live) is important for conservation. Wetlands create moisture in the air, through the evaporation of water, which encourage the formation of clouds and thus increase rainfall. Rainfall is crucial (important) for people, animal and plant survival. Without rain no grass, food and vegetables will grow and the animals and people will die.


Water can be saved by: not letting taps run or drip unnecessary. Cover plant soil with gravel, ground cover plants or dried leaves. This prevents fast evaporation (rising of water vapour) and soil stay wet longer, thus watering plants is then reduced. Water plants in the morning or evening when the sun is not so hot. This also reduces evaporation and reduces the times of wasting water on more plant watering. Wash the car with a bucket of water and not with a hosepipe. Shower more than have full tub baths. Fix all leaking or dripping pipes and taps. Collect water from roof downpipes for the garden watering. Use less dishes to eat and drink from so that you do not waste water with dish-washing.


South African Department of Water Affairs saves water on a large scale through recycling water plants where used water is disinfected and cleaned to use in factory machines and production plants; Improved irrigation systems (watering farms); desalination of seawater (taking the salt out of seawater) for drinking purposes and to water farms. New water storage systems are being created. SA has 320 dams (water storage systems Steenbras, The Vaal, The Gariep and The Vonderkloof. Dams are built in the way of large rivers. The water is stored and treated and send to housed and factories. When the dams are full flood gates are opens to release the excess water to prevent the dam from breaking and the land from flooding. When there is little rain the government restrict the citizens water use to ensure that everyone gets water until it rains again. In drought times Muslims pray together like a Ju-mu-'a for rain.

Air pollution, like water pollution must also be prevented. Burning plastic, tyres, wood and other substances create enormous black smoke (Carbon monoxide) that damages/ pollutes the air. People and animals can then breathe this smoke in which creates illnesses such as Asthma and other respiratory diseases and even death from suffocation. Smoking cigarettes and driving cars create lots of pollution. One can stop smoking, burning things unnecessarily and plant trees and home gardens to reduce the pollution. Carbon monoxide creates nausea, headaches, dizziness, cramps, impaired vision, shortness of breath, unconsciousness and death.

Water pollution can be prevented by not throwing things(dirt, chemical waste, oil spillage from ships, nuclear waste, sewage) in rivers, lakes and seas. People think that if water covers 70% of the Earth's surface that they can treat the waters and seas with disrespect. Water must be cared for. Allah (SWT) Warns people in Surah Mulk, that if Allah (SWT) Takes away the water from a person/ people who can give it back? We know that people cannot create water. To look after the resources Allah (SWT) has given us, especially water, is a form of I-BAA-DAH (worship/praise/thankfulness to Allah (SWT). When we take Wudu(ablution/Abdas) we must must not open the tap in full and let the water run widely. Use a trickle of water from the tap to take Wudu or rather use a one jug sparingly to take Wudu. The advice from the Holy Qur'an is to massage/rub the water around the ablution parts a wet hand is enough.

Ways of preventing water pollution: Factories must have treatment plants that clean water before it is released into the sea. Waste can be contained and recycled instead of dropped in the sea. Use household cleaning agents that are not toxic/poisonous. Do not flush pads down the toilet. If you do spot litter in water take it out immediately. Farmers must use natural products as fertilizers. Re-use oils for other purposes like to paint it on metals to prevent rusting.


Land pollution can be stopped by using biodegradable packaging (materials that will break up and easily become part of the nutrients of the soil) and recycling plastics, glass, metals, cardboard and paper. This means that waste is re-worked to make new products again without throwing anything away. Organic (natural) pesticides (that kill insects) can be used instead of harmful poisons. Don't litter. Reclaim land by planting trees, grasses and food.


Conserving/saving energy means saving money (you pay less for electricity) and saving the environment (the less electricity you use, the less coal is burnt at the power station and the less carbon dioxide in the air). Some ways to save electricity: Have the thermostats of fridges, geysers and dryers turned lower. Replace old appliances. Front-load washing machines reduce electricity usage by 60-70%. Buy fan heaters not bar heaters. Replace air filters in vacuums and air-conditioners. Buy flourescent tubed lights. Seal windows and doors so that heat does not escape and cold does not come in. This reduces your need to put on heaters. Use walk, use public transport, bicycles, lift clubs to get to to school/work. Recycle, re-use and reduce your consumption (use) of junk foods which come in polystyrene containers.


The South African Government has taken steps to conserve its National wildlife treasures by creating national parks: Addo Elephant National Park, Agulas Natinal park, Augrabies National Park, Bontebok National Park, Camdeboo National Park, Golden Gate Highlands National Park; Karoo National Park, Kgalagadi Tranfrontier Park, Knysna National Lake, Kruger National Park, Mapunguwe National Park, Marakele National Park, Mokala National Park, Mountain Zebra National Park, Namaqua National Park, Table Mountain National Park, Tankwa Karoo National Park, Tsitsikamma National Park, West Cost National Park, Wilderness National Park, Ai-Ais/Richtersveld Transfrontier Park. Now find the cities in which it is on your own.

Various governments have created world wide, international organisations to help with the conservation of the natural resources of the world. Such Organisations include: IPCC (Ontergovernmental Panel on Climate Change; UNEP (United Nations Environment Programme); WWF (World Wildlife Fund); The WILD Foundation; Earth System Governnance Project; WPF (Wildlife Protection Foundation). All these organisations get their funding from individuals who value wildlife and the environment. These people also.


Plant invaders or alien plants. These are plants that are not from South Africa, but they are in South Africa. They grow fast and furious and in the process kill indigenous (home/ South African-original) plants. The Port Jackson Bush seen mostly in Strandfountein, was imported from Australia to tame the sand dunes. This shrub grew so fast that it invaded the land, killing other plants and taking over the soil where other home plants could have grown.

Alien/Invasive plants in South Africa include the following: wattles (reduce water flow to build dams), pines (wood) , gums, hakeas, rooikrans (bind sand + prevent loss of beaches), triffid weed (for wood), cats claw creeper (wood), tussock grass (cattle feeding), cacti (wild life feed), water hyacint. Although these plants were brought to South Africa for business purposes, it destroyed the home-based plants and disturbs some recreational activities.


South Africa has a wide range of plants and animals. Because it has such a wide variety of climates and it has on its Eastern side the warm ocean (Agulhas current) and on its western side the cold ocean (Benguela current). These currents influence the climate, weather, plant growth and animal types in South Africa.

Some of the animal and plant riches of South Africa include: The Big Five: Lion, Tiger, Elephant, Wildebeest, Buffalo. Other South African animals antelopes, giraffe, zebra, baboon, crocodile, African snakes python, boomslang, cobra, rinkhals are known. Many frogs, fish of which the Snoek, Maasbanker, Catfish, and Galjoen are special to South Africa. Whale, dolphins and sharks are also known in South Africa. Many different insects and birds of prey (secretary bird) are also rich in South Africa. Coastal birds include Penguins, Cororants, Sea Gulls, Albatross and the Sandplovers. Small birds commonly seen weavers, Cape Robin, Turtle Dove, Swifts(Swallows), Sparrow, rock pigeon, Cape Wagtail. Known


Known South African Plants include marsh rose, Knysna forest, Fynbos, Camel thorn tree, flowers of Namaqualand, Baobab tree, proteas, arum lilies, Aloes, red-hot poker, iris, disa, Witmelkhout tree.

If 10 natural species lost in 15 years, then x natural species will be lost in 40 years:

15x = 10 x 40 .... x= 400/15 ...= 26, 6 species will be lost in 40 years if the trend persists.

The National treasures of South Africa include: Protea, Boabab Tree, Secretary Bird, Table Mountain, abundant wildlife, earliest site of human kind The Cradle of Mankind, Multi-million fossil sites, Sterkfontein Cave, Kruger National Park, Its mixed cultures Rainbow Nation, Drakensberg Park, Magaliesberg, Its people's, its national heroes, Nelson Mandela, Desmond Tutu, Cape Floristic Region, Succulent Karoo, Maputoland.

Bo-Kaap should become a national heritage site and its buildings and Islamic Culture protected from foreign influence and occupation. Bo-Kaap has 10 mosques and a picturesque area because it houses the oldest Dutch, British and Portuguese architecture. To conserve or look after a culture and an area is to create an interest and appreciation of the past which creates value for the present generations. With disrespect for heritage people values deteriorate, people's lifestyle becomes empty. When there is nothing to respect of the past, people start exploiting people and property for selfish reasons. This breaks down a community spirit which in-turn creates social problems of crime, broken families, unemployment and general disrespect.

People

People are healthy when they eat a balanced diet (Fats -milk, carbohydrates -breads, Protein -meats, Vitamins-fruits, Minerals -vegetables, Fibre - cereals), exercises, learns, prays and are creative.

Common illnesses and remedies are the following;

Common Illnesses

Home Remedies

1. Acne

Dab lemon juice regularly on the pimples

2. Diarrhoea

Drink butter milk/ carrot juice

3. Fever

Drink lots of water, lie down, crush 10 grams of raisins and ginger-boil them in 200ml of water till it reduces to 50ml, strain and drink warm

4. Bronchitis

Turmeric powder- teaspoon with

5. Head Lice

Wash hair with vinegar/apply coconut oil after shampoo/ add ten drops of tree oil in the shampoo/ rub listerine mouth wash on the head/ massage mayonnaise and comb the hair 2hrs later

6. Eczema

Apply/ olive oil/ 1 teaspoon of camphor + 1 teaspoon of sandle wood paste / nutmeg paste/ rub on vitamin E lotion

7. Hayfever

Add some honey to boiled minced grapefruit and lemon. 3X a day

8. Frequent Urination

Women-drink 1 teaspoon Magnesium Hydroxide Men- take herb Saw Palmetto

9. Headaches

The juice 3-4 slices of a lemon's juice in a cup of tea. Lemon crust paste applied to the forehead

10. Colds and flu

Honey water - warm water in microwave for 20 sec, dissolve one teaspoon of honey in it and drink warm


he above table comes from Traditional medicine. Other traditional/ folk /indigenous/ complimentary/ alternative medicines include: Chinese medicine, Islamic/Prophetic Medicine, light therapy, kinesiology/ Unani Tibb (based on Dr. Ibn Sina's Qanuun (Canon) 17 volumes of medical research. Reflexology, Acupuncture, African Medicine.


Conventional Medicine includes the use of anti-biotics (medicines, tablets) and surgery (cutting into the body under anesthetics). Lots of the practices and remedies of Conventional/ European medicine were based on the Qanuun of Ibn Sina whose name the Europeans changed to Avecinna and Averroes, to make him sound as if he was European not Arab/Muslim. Today conventional doctors openly use and are also qualified in traditional/alternative medicines and the medical practices are moving towards Holistic Medicine where the body(conventional medicine)-mind(psychology)-soul(religious) aspects of a person are treated as a unit to try and help a patient recover from an illness.


All people fear cancer, alzheimer's, strokes and heart diseases. People mostly fear cancer, because it eats away at the body and mind. Of the most feared cancers is brain cancer, which eats away at the brain. We ask Allah (SWT) to protect us and our love ones from these terrible diseases and ask Him to Grant us health and strength to do good work for ourselves and others Inshaa Allah

Most prevalent illnesses

  1. Africa -sleeping sickness (trypanosomiasis)

  2. Iceland and America heart attack

  3. Asia depression

  4. Arabia heat stroke

  5. South Africa Tuberculosis (TB)

  6. Japan strokes

  7. Europe liver failures


A person who is healthy and wise, is drug free, have faith in Allah (SWT), has self-control, is positive and very creative. These are positive energies that link with the unseen world of angles and goodness, which helps that person to achieve his/her goals.


The decisions we make on a second by second basis, are the instruments of our success or failure for that minute, hour, day or life. Remember a bad decision can ruin your whole life. You cannot blame anyone for it. You can only blame yourself for choosing the bad instead of the good. Remember each person has an angle (ma-lai-ka) that will guide, advise and assist him / her. But satan and his unseen friend, the bad jinn, always whisper evil suggestions into the ears, hearts and minds of a person, while the angle advises good. Choose the right/good act and not the bad act. Goodness always breeds goodness, even when the person you do it to does not like you. Keep to the right path and you will succeed. Good decisions make you feel good, light and happy. Bad decisions makes you feel bad, heavy and unhappy. Remember it is your duty to make yourself happy. Others cannot make you happy or unhappy. It depends on how you absorb what people do to you. If the fight you, you must defend yourself so that they do not overpower you. That is your personal duty. But if they insult you, you are allowed to return the insult, but it is better for you to move away and find a positive way to respond. Do not let other people's evil make you evil. To do this you need knowledge, strength, wisdom and intellect. This does not come without learning, striving, practicing and testing your self in various situations. Practice makes perfect. You need to exercise, eat well, read good material, get into good company and serve people of various positions rich, poor, healthy, sick, angry and good, strong and weak. To do this needs strength, commitment and courage. If you do not develop these you will become weak and people will exploit you. If you are not strong enough to fight back or respond well get help from people you trust and who do have strength, wisdom and courage.


To be happy and to progress continually, every person must ensure that he/she grow spiritually (know that Allah (SWT grants you life, food, shelter, cloths) physically (exercise, walk, eat healthily), intellectually (read, learn, discuss, research, explore) , emotionally ( control your anger, consider others, be openhearted), , socially(listen carefully when some speaks, have patience, communicate/speak well to people), professionally (have goals to certificate yourself by continually studying formally and informally, be task orientated, committed and never to procrastinate ( putting things off what can be done immediately)






























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