BNET Business Dictionary
Business Definition for: Exchange Rate
- the rate at which one country's currency can be exchanged for that of another country
Additional Resources
- Assessing Exchange Rate Risk
- When companies undertake international business, they take a risk because their investments and business operations may be affected by changes in the exchange rates for different currencies. This risk is known as exchange rate risk.Increasingly, companies are fighting for a slice of global markets, particularly in developing nations, and putting...
- Articles 2007-12-06
- Main Directions of Monetary and Exchange Rate Policies of Georgia for the year 2001
- The Main Directions of Monetary and Exchange Rate Policies of Georgia for the year 2001 shall rest on the following parameters: GDP growth - 4 %, annual inflation rate - 6 %. Taking into consideration economic growth it shall use only non-inflationary means of money supply so that the annual...
- White papers 2000-12-12
- Exchange Rate Policy and Sovereign Bond Spreads in Developing Countries
- This report tests the hypothesis of a link between exchange rate policy and sovereign bonds. The main findings are: real exchange rate overvaluation significantly increases sovereign bond issue probability and raises bond spreads; spreads and the likelihood of issuing bonds depend on the exchange rate regime; exchange rate misalignment under...
- White papers 2004-11-01
- DP2008/12: the relative size of New Zealand exchange rate and interest rate responses to news
- This paper examines the relative size of the effects of New Zealand monetary policy and macroeconomic data surprises on the spot exchange rate, 2 and 5 year swap rate differentials, and the synthetic forward exchange rate schedule. We find that the spot exchange rate and 5 year swap rates respond...
- Research articles 2008-09-01
- Endogenous Exchange Rate Pass-through when Nominal Prices are Set in Advance
- This paper develops a model of endogenous exchange rate pass through within an open economy macroeconomic framework, where both pass-through and the exchange rate are simultaneously determined, and interact with one another. Pass-through is endogenous because firms choose the currency in which they set their export prices. There is a...
- White papers 2003-03-07
- Exchange Rate Policy And Debt Crises In Emerging Economies
- This paper explores a model intended to capture the interaction between exchange rate policy, fiscal policy, and outright default on foreign-currency denominated debt. It examines how the exchange rate affects the supply of short-term debt facing the government. It shows that under a credible hard peg currency board, default is...
- White papers 2003-03-01
- Terms Of Trade And Exchange Rate Regimes In Developing countries
- Since Friedman, an advantage often attributed to flexible exchange rate regimes over fixed regimes is their ability to insulate the economy more effectively against real shocks. A post-Bretton Woods sample of seventy-five developing countries is used to assess whether the responses of real GDP, real exchange rates, and prices to...
- White papers 2003-01-01
- Inflation Targeting and Exchange Rate Flexibility
- Inflation targeting must target the price level as opposed to forward-looking inflation for uniqueness of perfect foresight equilibria. Its performance is very similar to exchange rate targeting. Money targeting displays real exchange rate flexibility in response to foreign shocks, while exchange rate and inflation targeting permit accommodation of money demand...
- White papers 2000-12-08
- Main Directions of Monetary and Exchange Rate Policies of Georgia for the year 2003
- This white paper explains monetary and exchanges rates policies of Georgia decreases. Main Directions of Monetary and Exchange Rate Policies for the year 2003 shall rest on the annual inflation rate within 5 %. The reserve money should increase by 8-10 percent, mainly by accumulating international reserves of the National...
- White papers 2002-12-25
- Exchange Rate Regimes And Financial-Market Imperfections
- This paper investigates the design of an exchange rate policy for an economy where the domestic capital market is segmented from the global financial market, producers rely on credit to finance working capital needs, and the labor market is characterized by nominal contracts. We show that the choice of an...
- White papers 2000-06-05
- Can Higher Reserves Help Reduce Exchange Rate Volatility?
- This paper studies the role of an increase in foreign exchange reserves in reducing currency volatility for emerging market countries. The study employs a panel of 28 countries over the period 1986-2002. Several control variables are introduced in the regressions to account for other factors affecting exchange rate volatility (monetary...
- White papers 2004-10-01
- Productivity Growth And The Exchange Rate Regime: The Role Of Financial Development
- This paper offers empirical evidence that a country's choice of exchange rate regime can have a significant impact on its medium-term rate of productivity growth. Moreover, the impact depends critically on the country's level of financial development, its degree of market regulation, and its distance from the global technology frontier....
- White papers 2005-05-10
- Main Directions of Monetary and Exchange Rate Policies of Georgia for the year 2000
- The Main Directions of Monetary and Exchange Rate Policies of Georgia for the year 2000 shall rest on the following official parameters: GDP growth of 4 %, and an annual inflation rate of 8 %. Floating exchange rate regime shall be maintained in 2000. The exchange rate of the national...
- White papers 2000-03-10
- Main Directions of Monetary and Exchange Rate Policies of Georgia for the year 2000 II
- The Main Directions of Monetary and Exchange Rate Policies of Georgia for the year 2000 shall rest on the following official parameters: GDP growth of 4 %, and an annual inflation rate of 8 %. Floating exchange rate regime shall be maintained in 2000. The exchange rate of the national...
- White papers 2000-03-10
- Pass-Through Estimates and The Choice Of An Exchange Rate Index
- The article examines exchange rate pass-through into U.S. import prices in 29 manufacturing industries using eight exchange rate indexes. These indexes vary by the number currencies included; whether the weight on each currency is based on total trade with the United States or solely imports; and, whether the weights vary...
- White papers 2003-09-10
- Structural Factors Affecting Exchange Rate Volatility: A Cross-Section Study
- The paper examines factors affecting exchange rate volatility, with an emphasis on structural features of the foreign exchange regime. It draws for the first time on detailed survey data collected by the IMF on foreign exchange market organization and regulations. Key findings are that decentralized dealer markets, regulations on the...
- White papers 2004-08-01
- The Endogeneity Of The Exchange Rate As A Determinant Of FDI
- Existing theoretical and empirical studies draw conflicting conclusions as to whether exchange rate volatility will encourage or suppress FDI Foreign Direct Investment, largely because they divorce exchange rate fluctuations from economic conditions within the host country. This paper argues that the exchange rate and projected sales in the host country...
- White papers 2003-11-20
- Identifying The Relationship Between Trade And Exchange Rate Volatility
- The authors have developed a model of international trade in which trade depresses real exchange rate volatility and exchange rate volatility impacts trade in products differently according to their degree of differentiation. In particular, commodities are less affected by exchange rate volatility than more highly differentiated products. These insights allow...
- White papers 2004-02-01
- EXCHANGE RATE TO BE FLEXIBLE
- AsiaInfo Services 04-03-2001 Exchange Rate To Be Flexible BEIJING, Apr 03, 2001 AsiaPort via COMTEX -- fter WTO entry, with the changes in trade and investment, variations will increase in payments in China, so the exchange rate will be flexi ...
- Research articles 2001-04-03
- Main Directions of Monetary and Exchange Rate Policies of Georgia for the year 2002
- The Main Directions of Monetary and Exchange Rate Policies of Georgia for the year 2002 shall rest on the following macroeconomic indicators: forecasted GDP growth of 3.5 - 4 %, and the annual inflation rate within 5 %. In conducting monetary and exchange rate policies in 2002, priority shall be...
- White papers 2002-03-01
