Foreign exchange market

About: Foreign exchange market is a research topic. Over the lifetime, 6661 publications have been published within this topic receiving 153384 citations. The topic is also known as: forex & FX.

Manager in the international economy

Abstract: The International Economy: A Manager's Perspective. THE ENTERPRISE FROM WITHIN. Going Multinational: Firm Motives and Characteristics. Case. Lotus Development Corporation: Entering International Markets. Managing the Multinational: Goals and Strategies. Case. Gerber Products Company: Investing in the New Poland. Managing the Multinational: Organizations and Networks. Case. Xerox and Fuji-Xerox. National Units in Multinational Networks. Case. Shell Brasil S.A.: Performance Evaluation in the Oil Products Division. THE ENTERPRISE AND THE NATION. Comparing National Economies. Case. Global Computer Industry. Exploring National Policies. Case. Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas (A). THE INTERNATIONAL ENVIRONMENT. The National Economy in an International Setting. Case. Volkswagen de Mexico North American Strategy (A). International Money Markets. Case. CIBA-GEIGY AG: Impact of Inflation and Currency. The International Rules of the Game: Money. Case. Fluctuations. The International Rules of the Game: Goods and Services. Case. Pfizer: Protecting Intellectual Property in a Global Marketplace. Balance of Payments Exercises (TBD) The Foreign Exchange Market: Problem Set (TBD).

Proposed strategy for a regional exchange rate arrangement in post-crisis East Asia

Abstract: After discussing major conceptual, and empirical issues relevant to the exchange rate policies of East Asian countries, the authors propose a regional exchange rate arrangement designed to promote intra-regional exchange rate stability, and regional economic growth. They argue that: 1) For developing countries, exchange rate volatility tends to significantly hurt trade and investment, making it inadvisable to adopt a system of freely floating exchange rates. 2) Given the high share of intra-regional trade, and the similarity of trade composition in East Asia, exchange rate policy should be directed toward maintaining intra-regional exchange rate stability, to promote trade, investment, and economic growth. 3) the current policy of maintaining exchange rate stability against U.S. dollar as an informal, uncoordinated mechanisms for ensuring intra-regional exchange rate stability is sub-optimal. A pragmatic policy option - conducive to a more robust framework for cooperation in monetary, and exchange rate policy - wold be a coordinated action to shift the target of nominal exchange rate stability, to a basket of tri-polar currencies (the U.S. dollar, the Japanese yen, and the Euro). This alternative would better reflect the region's diverse structure of trade, and foreign direct investment. The authors envision no rigid peg. Instead, at least initially, each country could choose its own formal exchange rate arrangement - be it currency board, a crawling peg, or a basket peg with wide margins. At times of crisis, the peg might be temporarily suspended, subject to the rule that the exchange rate would be restored to the original level as soon as practical. Only in extreme circumstances, would the level be adjusted to reflect new equilibrium conditions.

Analysis of a network structure of the foreign currency exchange market

Abstract: We analyse structure of the world foreign currency exchange (FX) market viewed as a network of interacting currencies. We analyse daily time series of FX data for a set of 63 currencies, including gold, silver and platinum. We group together all the exchange rates with a common base currency and study each group separately. By applying the methods of filtered correlation matrix we identify clusters of closely related currencies. The clusters are formed typically according to the economical and geographical factors. We also study topology of weighted minimal spanning trees for different network representations (i.e., for different base currencies) and find that in a majority of representations the network has a hierarchical scale-free structure. In addition, we analyse the temporal evolution of the network and detect that its structure is not stable over time. A medium-term trend can be identified which affects the USD node by decreasing its centrality. Our analysis shows also an increasing role of euro in the world’s currency market.

Commercial bank risk: market, interest rate, and foreign exchange

Abstract: Because of recent structural changes in the balance sheets of banks, regulatory changes in the risk-based capital requirements, and the recent adoption of mark-to-market accounting changes, interest rate risk remains an important issue for commercial banks and an important regulatory concern. Market, interest rate, and foreign exchange risk are estimated for a sample of commercial banks using ordinary least squares from 1986 to 1991. Consistent with earlier studies, the estimated coefficients continue to be unstable. We find that interest rate risk decreases and foreign exchange risk increases. Moreover, the results differ depending on practices of the bank (money center, superregional, or regional). We find evidence consistent with earlier studies that theorize foreign exchange risk is explained by unhedged foreign loan exposure.