Lazard Emerging Markets Debt
... presidential bid in November. At that point, emerging markets debt had posted one of its longest and strongest continuous rallies since the global financial crisis; however, in our view these gains were partially reversed for reasons related to the unexpected US election result: • Trump’s promises ...
... presidential bid in November. At that point, emerging markets debt had posted one of its longest and strongest continuous rallies since the global financial crisis; however, in our view these gains were partially reversed for reasons related to the unexpected US election result: • Trump’s promises ...
Foreign Exchange Risk Mitigation for Power and Water Projects in
... • Exchange Rate Risk: Exchange rate risk exists where a project’s revenues and costs are denominated in different currencies. Exchange rate risk naturally has an upside as well as a downside, but the experience of most developing countries has been a local currency depreciation against more stable i ...
... • Exchange Rate Risk: Exchange rate risk exists where a project’s revenues and costs are denominated in different currencies. Exchange rate risk naturally has an upside as well as a downside, but the experience of most developing countries has been a local currency depreciation against more stable i ...
THE VALUATION OF FOREIGN CURRENCY OPTIONS IN KENYA UNDER STOCHASTIC VOLATILITY BY:
... INTRODUCTION 1.1. Background of the Study Currency options are derivative financial instrument where there is an agreement between two parties that gives the purchaser the right, but not the obligation, to exchange a given amount of one currency for another, at a specified rate, on an agreed date in ...
... INTRODUCTION 1.1. Background of the Study Currency options are derivative financial instrument where there is an agreement between two parties that gives the purchaser the right, but not the obligation, to exchange a given amount of one currency for another, at a specified rate, on an agreed date in ...
IDEAs Conference on ‘Reforming the Financial System: Proposals, Constraints
... mechanism for coordinated capital account control, she wondered about the feasibility of such an arrangement to work in a democratic manner given the dominance of the developed nation in international relations, and instead proposed going back to IMF Article 5, which allows all countries to have cap ...
... mechanism for coordinated capital account control, she wondered about the feasibility of such an arrangement to work in a democratic manner given the dominance of the developed nation in international relations, and instead proposed going back to IMF Article 5, which allows all countries to have cap ...
Currency blocs in the 21st century
... currency choice has attracted surprisingly little attention. As an exception, Meissner and Oomes (2009) explicitly consider anchor currency choice but their sample ends in 1998, the year before the euro was introduced. Since then, the situation has changed fundamentally because, now, there are two m ...
... currency choice has attracted surprisingly little attention. As an exception, Meissner and Oomes (2009) explicitly consider anchor currency choice but their sample ends in 1998, the year before the euro was introduced. Since then, the situation has changed fundamentally because, now, there are two m ...
Analysis of the RMB`s Chance to be Included in the SDR The
... rapid growth. Moreover, those indicators are not meant to be used mechanically. IMF also emphasizes that the Executive Board’s judgment is necessary. Combined with Christine Lagarde’s latest comment that it is a matter of when, not if, the RMB makes it into the SDR, and the RMB internationalization’ ...
... rapid growth. Moreover, those indicators are not meant to be used mechanically. IMF also emphasizes that the Executive Board’s judgment is necessary. Combined with Christine Lagarde’s latest comment that it is a matter of when, not if, the RMB makes it into the SDR, and the RMB internationalization’ ...
Econ 336 - Rutgers Economics
... 15) Which of the following statements is true about a vehicle currency? ...
... 15) Which of the following statements is true about a vehicle currency? ...
1 9 9 8 - 03, July The International Role of the Euro Agnès Bénassy
... for the emergence of the euro. This efficiency will rise because of (i) increased competition among financial intermediaries, (ii) the rising role of institutional investors, (iii) the currency uniformisation of European securities, and (iv) competition among euro asset issuers. However, EMU by itse ...
... for the emergence of the euro. This efficiency will rise because of (i) increased competition among financial intermediaries, (ii) the rising role of institutional investors, (iii) the currency uniformisation of European securities, and (iv) competition among euro asset issuers. However, EMU by itse ...
View/Open
... Nevertheless, the effect of currency crises may largely differ from that of regular exchange rate movements. Currency crises may have large impact on the overall performance of the economy, domestic asset prices, banking and financial sectors and may as well induce major regulatory changes (United N ...
... Nevertheless, the effect of currency crises may largely differ from that of regular exchange rate movements. Currency crises may have large impact on the overall performance of the economy, domestic asset prices, banking and financial sectors and may as well induce major regulatory changes (United N ...
Chapter 16: Foreign Exchange Derivative Markets
... Begin with an equilibrium situation and consider what will happen to the U.S. demand for euros and the supply of euros for sale if U.S. inflation suddenly becomes much higher than European inflation. The U.S. demand for European goods will increase, reflecting an increased U.S. demand for euros. In ...
... Begin with an equilibrium situation and consider what will happen to the U.S. demand for euros and the supply of euros for sale if U.S. inflation suddenly becomes much higher than European inflation. The U.S. demand for European goods will increase, reflecting an increased U.S. demand for euros. In ...
Use of Exchange Rates as Approximate PPPs for Machinery and
... The full coverage of Machinery and Equipment (Category 15.01.00.0) is given in the ICP Classification of Final Expenditure on the GDP. Machinery and Equipment is divided into two Groups - Metal Products and Equipment (15.01.10.0) and Transport Equipment (15.01.20.0). Metal Products and Equipment con ...
... The full coverage of Machinery and Equipment (Category 15.01.00.0) is given in the ICP Classification of Final Expenditure on the GDP. Machinery and Equipment is divided into two Groups - Metal Products and Equipment (15.01.10.0) and Transport Equipment (15.01.20.0). Metal Products and Equipment con ...
The Balance of Payments and Exchange Rates
... An increase in U.S. imports increases other countries’ exports, which stimulates those countries’ economies and increases their imports, which increases U.S. exports, which stimulates the U.S. economy and increases its imports, and so on. This is the trade feedback effect. In other words, an increas ...
... An increase in U.S. imports increases other countries’ exports, which stimulates those countries’ economies and increases their imports, which increases U.S. exports, which stimulates the U.S. economy and increases its imports, and so on. This is the trade feedback effect. In other words, an increas ...
NBER WORKING PAPER SERIES THE DYNAMIC INTERACTION OF William H. Branson
... During the fifteen years since 1970, the theory of exchange—rate determination has been completely transformed. In the late 1960s, the standard model of the foreign exchange market had supply and demand as stable functions of exports and imports, with the expection that a floating rate would move gr ...
... During the fifteen years since 1970, the theory of exchange—rate determination has been completely transformed. In the late 1960s, the standard model of the foreign exchange market had supply and demand as stable functions of exports and imports, with the expection that a floating rate would move gr ...
Núm. 862 2015 - Banco de la República
... The breakdown of the Bretton Woods system in the early 1970’s marked the beginning of the greatest exchange rate liberalization in history. Major currencies were allowed to float, while others fluctuated within narrow bands. Decades later, during the aftermath of the European exchange rate crisis of ...
... The breakdown of the Bretton Woods system in the early 1970’s marked the beginning of the greatest exchange rate liberalization in history. Major currencies were allowed to float, while others fluctuated within narrow bands. Decades later, during the aftermath of the European exchange rate crisis of ...
Module - 17 Exchange Rate Theories: Purchasing Power Parity
... Highlight & Motivation: Certain fundamental macroeconomic factors influence the exchange rates. Factors like inflation rate and interest rate govern how the exchange rate between countries moves with each other. When the actual exchange rate deviates from the rate governed by these fundamental relat ...
... Highlight & Motivation: Certain fundamental macroeconomic factors influence the exchange rates. Factors like inflation rate and interest rate govern how the exchange rate between countries moves with each other. When the actual exchange rate deviates from the rate governed by these fundamental relat ...
Design and Implementation of a Common Currency Area in the East
... The interest in regional integration—including monetary integration—in Africa has been high over the decades since independence and various regional groupings have been formed. Those initiatives were stimulated by the generally small size of individual economies leading to a desire to exploit econom ...
... The interest in regional integration—including monetary integration—in Africa has been high over the decades since independence and various regional groupings have been formed. Those initiatives were stimulated by the generally small size of individual economies leading to a desire to exploit econom ...
14 pages - Bank for International Settlements
... and Lithuania, the estimated relationship is indistinguishable statistically from that in Graph 3. Furthermore, if we exclude currencies that the IMF (2013, pp 5–6) characterises as having a “crawl-like” (Croatia) or “other managed arrangement” (Russia and Switzerland), the result does not change mu ...
... and Lithuania, the estimated relationship is indistinguishable statistically from that in Graph 3. Furthermore, if we exclude currencies that the IMF (2013, pp 5–6) characterises as having a “crawl-like” (Croatia) or “other managed arrangement” (Russia and Switzerland), the result does not change mu ...
Public Choice Theory and the Transition Market Economy in Eastern
... money supplies in these countries and resulted in the rise of a dual currency system, where private transactions were conducted with Western currency. The Eastern European currencies were valueless in foreign markets as well as in the home country. 13 Furthermore, Eastern European economies were cha ...
... money supplies in these countries and resulted in the rise of a dual currency system, where private transactions were conducted with Western currency. The Eastern European currencies were valueless in foreign markets as well as in the home country. 13 Furthermore, Eastern European economies were cha ...
International Economics, 10e (Krugman/Obstfeld/Melitz) Chapter 21
... Answer: As for Germany a period of boom with high interest rates to fight inflation. Other European countries: France, Italy and UK in recession, trying to match the high German interest rates to hold their currencies fixed against Germany's, thereby pushing their economies into deep recession. Othe ...
... Answer: As for Germany a period of boom with high interest rates to fight inflation. Other European countries: France, Italy and UK in recession, trying to match the high German interest rates to hold their currencies fixed against Germany's, thereby pushing their economies into deep recession. Othe ...
Can Currency Competition Work? - Penn Economics
... We start our analysis by considering the possibility of a purely private monetary arrangement. In particular, we focus on a system in which entrepreneurs issue intrinsically worthless tokens that circulate as a medium of exchange, attaining a strictly positive value. These privately issued currencie ...
... We start our analysis by considering the possibility of a purely private monetary arrangement. In particular, we focus on a system in which entrepreneurs issue intrinsically worthless tokens that circulate as a medium of exchange, attaining a strictly positive value. These privately issued currencie ...
Global Pricing
... swaps or other financial instruments There may be additional constrains such as inability to freely convert local currency to other currencies, limitations on foreign exchange transfers etc ...
... swaps or other financial instruments There may be additional constrains such as inability to freely convert local currency to other currencies, limitations on foreign exchange transfers etc ...
The Effects of the Euro on Intra-Euro Area Exports
... no significant aggregate effect on the Irish exports to euro area countries relative to the rest of the Irish trading partners. However, when we relax the assumption of homogeneous euro effects over the analysed period, we find that the impact of the euro on exports to euro area countries relativ ...
... no significant aggregate effect on the Irish exports to euro area countries relative to the rest of the Irish trading partners. However, when we relax the assumption of homogeneous euro effects over the analysed period, we find that the impact of the euro on exports to euro area countries relativ ...
The Renminbi and Exchange Rate Regimes in East Asia
... In addition, the PRC has been pursuing a policy of internationalizing the RMB in the wake of the global financial crisis. The authorities started to allow firms to settle merchandise trade in RMB, foreigners to hold offshore RMB deposits, and foreigners to issue offshore RMB bonds. In addition, a se ...
... In addition, the PRC has been pursuing a policy of internationalizing the RMB in the wake of the global financial crisis. The authorities started to allow firms to settle merchandise trade in RMB, foreigners to hold offshore RMB deposits, and foreigners to issue offshore RMB bonds. In addition, a se ...
Output and Exchange Rate in the Short Run
... makes people expect a domestic currency appreciation in the short run due to increased aggregate demand, thereby reducing the expected return on foreign currency deposits, making the domestic currency appreciate. ...
... makes people expect a domestic currency appreciation in the short run due to increased aggregate demand, thereby reducing the expected return on foreign currency deposits, making the domestic currency appreciate. ...
Currency war
Currency war, also known as competitive devaluation, is a condition in international affairs where countries compete against each other to achieve a relatively low exchange rate for their own currency. As the price to buy a country's currency falls so too does the price of exports. Imports to the country become more expensive. So domestic industry, and thus employment, receives a boost in demand from both domestic and foreign markets. However, the price increase for imports can harm citizens' purchasing power. The policy can also trigger retaliatory action by other countries which in turn can lead to a general decline in international trade, harming all countries.Competitive devaluation has been rare through most of history as countries have generally preferred to maintain a high value for their currency. Countries have generally allowed market forces to work, or have participated in systems of managed exchanges rates. An exception occurred when currency war broke out in the 1930s. As countries abandoned the Gold Standard during the Great Depression, they used currency devaluations to stimulate their economies. Since this effectively pushes unemployment overseas, trading partners quickly retaliated with their own devaluations. The period is considered to have been an adverse situation for all concerned, as unpredictable changes in exchange rates reduced overall international trade.According to Guido Mantega, the Brazilian Minister for Finance, a global currency war broke out in 2010. This view was echoed by numerous other government officials and financial journalists from around the world. Other senior policy makers and journalists suggested the phrase ""currency war"" overstated the extent of hostility. With a few exceptions, such as Mantega, even commentators who agreed there had been a currency war in 2010 generally concluded that it had fizzled out by mid-2011.States engaging in possible competitive devaluation since 2010 have used a mix of policy tools, including direct government intervention, the imposition of capital controls, and, indirectly, quantitative easing. While many countries experienced undesirable upward pressure on their exchange rates and took part in the ongoing arguments, the most notable dimension of the 2010–11 episode was the rhetorical conflict between the United States and China over the valuation of the yuan. In January 2013, measures announced by Japan which were expected to devalue its currency sparked concern of a possible second 21st century currency war breaking out, this time with the principal source of tension being not China versus the US, but Japan versus the Eurozone. By late February, concerns of a new outbreak of currency war had been mostly allayed, after the G7 and G20 issued statements committing to avoid competitive devaluation. After the European Central Bank launched a fresh programme of quantitative easing in January 2015, there was once again an intensification of discussion about currency war.