Exchange rate Essays

  • Exchange Rate Fluctuation

    6214 Words  | 25 Pages

    relationship or linkage that exists between exchange rate fluctuation and employment paying attention to the manufacturing sector using analytical and econometric research tools. 2.1 CONCEPTUAL REVIEW 2.1.1 Exchange rate Exchange rate as a term refers to rate of exchange of one nation’s currency to another. According to Sloman and Wride (2009), it is the rate at which one currency trades for another on the foreign exchange

  • Factors Influencing Exchange Rate

    1392 Words  | 6 Pages

    no pressing need for exchange rates. Each nation would function as if no other nation existed. The countries would manufacture goods and services that would be consumed only by the inhabitants of the nation. If a country were devoid of a certain resource, it would have no scope in that particular field. Global trade would be non-existent in such a scenario. But fortunately, such a scenario is purely

  • Exchange Rate Research Paper

    1188 Words  | 5 Pages

    2.2 Exchange rate Exchange rate refer to the prices of the products and services of each country. It has its own currency that are quoted such as the currency of United States call dollar, the currency of Malaysia call Malaysian Ringgit, and the currency of Singapore call Singapore dollar (Wong 2000). Exchange rate play an important role in comparing the value of products and services in different countries throughout the world. Exchange rate is the price value of one currency that able to convert

  • Essay On Foreign Exchange Rate

    788 Words  | 4 Pages

    INTRODUCTION Exchange rate is “the price of a nation’s currency in terms of another currency” – Investopedia. Exchange rate can be quoted in two ways: 1. Direct Quotation: foreign currency’s price is expressed in domestic currency. 2. Indirect Quotation: domestic currency’s price is expressed in foreign currency. Exchange is also referred to as currency quotation, Foreign exchange rate or forex rate. There are two types of exchange rate regimes that nations follow: 1. Fixed Exchange Rate Regime: Under

  • Malaysia Exchange Rate Essay

    1240 Words  | 5 Pages

    Exchange rate, defined as the domestic currency price of foreign currency, a good thing in terms of their levels and their fluctuations. The exchange rate can affect both the amount of foreign direct investment (FDI) regulations and the provisions of this investment spending in various countries. This means that when the currency devaluation to reduce the potential impact of two other currencies are relative to exchange rate changes on foreign direct investment .It reduces the state wage and production

  • South African Interest Rate Vs. Dollar Exchange Rate

    801 Words  | 4 Pages

    SOUTH AFRICAN INTEREST RATES AND THE RAND/DOLLAR EXCHANGE RATE: WHY THE PATH ISN’T ALWAYS CLEAR INTRODUCTION When examining the relationship between interest rate levels and exchange rates, one can observe a definite link. The two factors are linked clearly in economic theory, and there is a clear path that one can follow in order to see the effects they have on one another. In practice however, it is not always that simple. Other factors come into play that can disrupt this path, and the real world

  • Exchange Rate System Research Paper

    1411 Words  | 6 Pages

    EXCHANGE RATE SYSTEM An exchange rate system is a system in which the national currency of one nation is linked by the national currency of another nation through an exchange rate. This exchange rate is usually a fixed ratio. The exchange rate has two components that is domestic currency and foreign currency. The domestic currency belongs to the nation and foreign currency belongs to the nation which it is comparing. In direct sense, usually the price of a unit of a foreign currency is expressed

  • Exchange Rate Devaluation Analysis

    903 Words  | 4 Pages

    another country. For example, rupee when pegged against the dollar will be traded at its current rate which is $1= Rs 66.38. So what this rupee will buy for an Indian citizen will be the same for what a U.S national will get for $1.Factors that determine the value of a currency are:- 1. Interest

  • Exchange Rate Shocks

    1259 Words  | 6 Pages

    (INCLUDES; BACKGROUND OF THE STUDY, OBJECTIVES, PROBLEM STATEMENTS) The impact of exchange rate shocks on household costs and expansion is typically condensed as far as a marvel called swapping scale go through, which is the impact that a changeless swapping scale stun of a given extent has on costs and swelling after some time. Present day conversion scale models accentuate monetary resource markets. An expansion in interest rate is important to settle the conversion standard devaluation and to check the

  • Factors Affecting Foreign Exchange Rates

    2070 Words  | 9 Pages

    1) Introduction Foreign exchange transaction comprises of everything ranging from converting a currency to another currency by an individual, to giant companies and governments making payments overseas in exchange for goods and services. These foreign transactions are done in various currencies, and for better precision, determination of the exchange rates is crucial. Exchange rates distinctively vary from country to country, owing to the fact that economic variables or determinants of currency values

  • Exchange Rate Inequality Case Study

    1632 Words  | 7 Pages

    Exchange rate volatility and its impact: Case of India and China  Exchange Rate Exchange rate between two currencies is the rate at which one currency will be exchanged for another.  How to calculate exchange rate Each country manages the value of its currency through varying mechanisms. The currency can either be free-floating or fixed. 1. Movable or Adjusted Peg System A system of fixed exchange rates, but with a provision for the revaluation (usually devaluation) of a

  • International Economics: The Relationship Between Interest Rate And Exchange Rate

    1820 Words  | 8 Pages

    the interest rate and exchange rate has long been a key focus of international economics. This also explains the theoretical and empirical literature proves that there exist a relationship between interest rate and exchange rate. Some studies found out that in the short run, there exit a negative relationship and positive relationship in the long run. Moreover, most papers and articles in countries deliberate on the impact of these economic variables (exchange rate and interest rate) in equally determining

  • Essay On Exchange Rate

    1130 Words  | 5 Pages

    Exchange Rate Exchange rate is the price of a domestic currency in relation to foreign currency. It tells us the amount of rupee that is needed to buy, say, a US Dollar. When the value of Rupee appreciates in relation to the Dollar, the exchange rate is said to have fallen. Similarly, when the value of Rupee depreciates against the Dollar, the rate is said to have risen. Nominal and Real exchange rate Nominal exchange rate is simply the price of domestic currency in relation to another currency

  • Rmb Exchange Rate Research Paper

    1748 Words  | 7 Pages

    expenses, the economic growth and inflation rate.As well as short-term factors such as The central bank's intervention.The public's expectations,Interest rates and Foreign exchange reserve etc affect impact of RMB exchange rate changes,And then summarizes the problem of exchange rate changes, and then make some countermeasures to improve the RMB exchange rate system .We need to determine whether the factors above have significant impact on GDP, either positive or negative. CHAPTER 1 1.0 Introduction

  • Exchange Rate Definition

    1296 Words  | 6 Pages

    Exchange rate is very significant to the growth of any nation. According to Jilani (2010) in the case of developing countries high value of real exchange rate should be maintained because results show that there is a significant and positive impact of exchange rate with GDP. Gala (2007), and Bhalla (2007) say that real exchange rate of any country plays a very important role in the process of growth. Exchange rate is defined as how much one currency is exchanged in terms of another. The weights are

  • Exchange Rate Volatility

    1241 Words  | 5 Pages

    Review of Literature: A large number of studies have examined Trade and exchange rate volatility under two broad frameworks. An academic study on the Exchange rate volatility on trading is very important and pertinent in the context of its structural existence. In the present study, following reviews are available in the area of exchange rate volatility with Macroeconomic variables. The research studies conducted in exchange rate volatility are related mostly to different macroeconomic variables. Michael

  • Fixed Exchange Rates

    10329 Words  | 42 Pages

    a fixed exchange rate, the rate was usually fixed at a rate that is at par with and is tied to the gold standard, this was operated under the Bretton woods agreement for a fixed exchange rate. But after the collapse of the Bretton woods agreement, nations who still maintained a fixed exchange rate had their rate fixed by the monetary authority. And the fixed system would have to be maintained at point of equilibrium by the readiness of the apex monetary authority to service the fixed rate by buying

  • Exchange Rate In Thailand Essay

    1662 Words  | 7 Pages

    Exchange rate in Thailand compared to other currencies has been on the turbulent journey of increase and decreased values the dollar is currently trading at $1 equals to 30 baht from more than 35 in 2014 to less than 30 in 2016. Social: Thailand most populated cities are Bangkok, with a population of about 12 million, followed by Nonthaburi and Pak Kret, with populations close to 12 million. People migrate from rural towns to major cities due to their accessibility to jobs as most companies are based

  • A Comparative Analysis Of Exchange Rate

    1085 Words  | 5 Pages

    1.0 Overview Summary Magda Kandil, Nazire Nergiz Dincer, in their article "A comparative analysis of exchange rate fluctuations and economic activity: The cases of Egypt and Turkey" about the appreciation or depreciation in exchange rate will affect the price of the output of the country either increase nor decrease the price of home goods relative to the foreign goods. Aggregate demand will decrease when currency fall from an initial trade and it will reduce the real national income. The writer

  • Purchasing Power Parity Case Study

    791 Words  | 4 Pages

    Assume that we have two countries A and B with respective inflation rates at 0,1% and 16,6% with different currencies. The difference in the inflation rates is 16,5% which means that the country with the lower inflation rate (country A) should appreciate its currency almost 16,5 percent or for country B to depreciate its currency at the same percentage. 2) Assume that we have two countries: Germany and Russia. Germany has an inflation rate at 0,40% and Russia has at 16,40%. Germany imports from Russia