The Effects of Foreign Currency Derivatives on the Monetary Policy Exchange Rate Channel in China

2015 ◽  
Vol 29 (2) ◽  
pp. 175-193 ◽  
Author(s):  
Wen Si
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Foreign Currency ◽  
Currency Derivatives

Foreign Currency Derivatives and Foreign Exchange Rate Exposure Management of KOSDAQ Firms

2013 ◽  
Vol 21 (2) ◽  
pp. 223-254
Author(s):  
Taek Ho Kwon
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Foreign Exchange Rate ◽  
Sufficient Evidence ◽  
Similar Data ◽  
Test Results ◽  
Crisis Period ◽  
Exchange Rate Exposure ◽  
Currency Derivatives

This study examines the foreign currency derivatives trading of KOSDAQ firms and analyses the relations of derivatives trading and foreign exchange rate exposure in the period 2005~2010. The amount of derivatives trading reaches 27.7% of total assets for the trading firms before global financial crisis period (2005~2007). While, the amount decreases to 17.6% of total assets during the crisis period (2008~2010). These amounts are much greater than those of KOSPI firms which are calculated using similar data specification and periods. The variables which are usually adopted as determinants of derivatives trading do not explain the usage of derivatives in the analysis of period 2005~2007. These results suggest that KOSDAQ firms use derivatives not only foreign exchange risk managements but also trading purposes during this period. Test results do not show sufficient evidence that KOSDAQ firms use derivatives trading in an effective manner to manage foreign exchange rate exposure. In sum, test results suggest that to achieve the goal of managing foreign exchange rate exposure firms should estimate their open position in foreign currency properly before conducting foreign currency derivatives trading.

scholarly journals Real Time Data

2018 ◽  
Vol 4 (3) ◽  
pp. 147
Author(s):  
Arlind Rama ◽  
Ilir Vika
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Foreign Currency ◽  
Developing Economies ◽  
Exchange Rate Volatility ◽  
Economic News ◽  
Economic Fundamentals ◽  
Us Dollar ◽  
The Impact ◽  
Exchange Rates Volatility

Interpretation of exchange rate volatility in the light of economic fundamentals comprises an issue of interest for policymakers when it comes to implementing the monetary policy. Understanding the impact of economic news on the Lek exchange rate against two main hard currencies, Euro and US dollar, would serve to better orient the monetary policy and forex market agents positioning in time. Exchange rates volatility on economic news in short-term is an often discussed phenomenon in the economic literature, but through this material we tend to measure these effects in the Albanian foreign currency market and contribute in the literature interpreting foreign currency markets volatility in developing economies. Very often, domestic foreign exchange movements are attributed to developments in large international markets. In the case of Albanian Lek volatility analysis, we tend to find answers regarding the importance of economic news coming from the two main economies in focus, Eurozone and the US. Furthermore, we investigate the importance of the economic information flow in Albania in determining the Lek exchange rate against Euro and US dollar. For a period in focus from January 2007 until July 2012, we try to understand if the exchange rate volatility has been a result of economic fundamentals or financial markets stress related economic news.

COMPETITIVE DEVALUATION AS AN ELEMENT OF RUSSIA'S MODERN MONETARY POLICY

2021 ◽  
Vol 1 (195) ◽  
pp. 95-102
Author(s):  
K.G. Bunevich ◽  
◽  
T.A. Gorbacheva ◽  
A.N. Brodunov ◽  
◽  
...  
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Foreign Currency ◽  
Current System ◽  
Federal State ◽  
Foreign Markets ◽  
Fundamental Factor ◽  
Russian Economy ◽  
The Exchange Rate ◽  
The International Monetary Fund

The purpose of this article is to analyze the current system of exchange rate formation in Russia, to identify its main features. The dynamics of the exchange rate is of particular importance for Russian economy, which is among the so-called export-and resource-oriented. In such economies, the exchange rate is significantly dependent on the conditions of foreign markets, since the receipt of foreign exchange earnings from exports is the most important fundamental factor in the supply of foreign currency on the domestic market. On the other hand, the exchange rate itself is a factor in the external price competitiveness of Russian exports. The statistical databases of the Federal State Statistics Service and the Bank of Russia, as well as the statistical data of the International Monetary Fund group, the World Bank and the Organization for Economic Cooperation and Development, served as the information base for this study. The paper used critical and comparative analysis, a systematic approach to the study of information, retrospective, statistical and graphical methods, on the basis of which the prerequisites were investigated and the features of the current monetary policy and some of its individual elements were identified.

scholarly journals Foreign Currency Exposure and Hedging: Evidence from Foreign Acquisitions

2013 ◽  
Vol 03 (02) ◽  
pp. 1350010 ◽  
Author(s):  
Söhnke M. Bartram ◽  
Natasha Burns ◽  
Jean Helwege
Keyword(s):  
Exchange Rate ◽  
Foreign Currency ◽  
Securities And Exchange Commission ◽  
Foreign Companies ◽  
Foreign Acquisitions ◽  
Currency Derivatives ◽  
Currency Exposure ◽  
Foreign Operations ◽  
The Exchange Rate ◽  
Using Data

We study the exchange rate exposures of a sample of firms that undertake large acquisitions of foreign companies. Using data from Securities and Exchange Commission (SEC) filings on their foreign operations and derivatives usage, we examine how the exposures change from before to after the acquisition. We find that these deals generally lead to reduced currency exposure, which reflects the fact that most of the firms already have business in the target's country and the mergers serve as operational hedges. In contrast, we do not find a statistically significant effect for hedging with currency derivatives despite the fact that many of the firms in the sample use such instruments.

scholarly journals The Role of Monetary Policy in Activating the Bank Credit Channel: Iraq Case Study

2021 ◽  
Vol 11 (4) ◽  
pp. 4990-5009
Author(s):  
Mustafa Mohammed Sabri
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Central Bank ◽  
Commercial Banks ◽  
Foreign Currency ◽  
Active Role ◽  
Bank Credit ◽  
Credit Channel

The main objective of the research is to find out how monetary policy has influenced the support and promotion of bank credit to promote the economy by creating jobs and addressing unemployment, where the central bank after2003 played a leading and active role in supporting commercial banks and promoting bank credit ‘One of the central bank's important objectives is to stabilize the overall level of prices set out in law No 56 For the year ( ( 2004 Article (3) The Central Bank of Iraq has used the policy of stability in the exchange rate of the dinar as a key tool in stabilizing prices in Iraq through the window of selling foreign currency.

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