Hi guys,
If we talk about US dollar it is true that US dollar is not a stable currency, we can check it out from the previous records.
Please share your views regarding this…
Description
A currency crisis, which is also called a balance-of-payments crisis, is a sudden devaluation of a currency which often ends in a speculative attack in the foreign exchange market.
BALANCE OF PAYMENTS CRISES IN EMERGING MARKETS Large Capital Inflows and Sovereign Governments...
Description
Evolution is the change in the inherited characteristics of biological populations over successive generations. Evolutionary processes give rise to diversity at every level of biological organisation, including species, individual organisms and molecules such as DNA and proteins...
Description
A derivative is a financial instrument which derives its value from the value of underlying entities such as an asset, index, or interest rate—it has no intrinsic value in itself.
A STUDY ON CURRENCY DERIVATIVES
Devoid of jargon, currency derivatives can be described as contracts...
The dollar rose against a basket of
currencies on Friday, hovering near a 10-month high as debate over
whether the Federal Reserve would wind down its asset buying programme
later this year gathered pace. There was good dollar demand from
importers as well, while exporters stepped up sales of...
Dollarization reduces the risk of inflation. Governments, especially in developing countries, are very bad at controlling inflation. They always want to increase short term growth at the expense of long term stability. Governments should tie their own hands through dollarization to make their...
I have to prepare a report on the effects of currency market on the price competitiveness on a product.
On my research, I am only able to find relation between exchange rate and balance of payment.
I searched the forum, but could not find info. My background in economics is very weak. Someone...
European Union, which comprises of many countries, is the largest trade block formed but only 13 countries are using the common currency Euro. When do you think that the remaining countries will implement this?
Foreign currency transactions are accounted at the exchange rates prevailing at the date of the transaction.
Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the...
A currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency.
This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target.
The virtue of this system is that questions of...
CURRENCY SWAPS
Each entity has a different access and different long term needs in the international markets. Companies receive more favorable credit ratings in their country of domicile than in the country in which they need to raise capital. Investors are likely to demand a lower return from...
Currency risk is a two-way risk because exchange rate movements can be either favourable with a resulting gain, or adverse with a resulting loss.
A Company might take a view that currency risk is acceptable whenever it occurs, and that gains or losses on exchange rate movements should be...