scholarly journals The Official Use of International Currencies – Assessments and Implications

2015 ◽  
Vol 10 (3) ◽  
pp. 71-80
Author(s):  
Ramona Orăștean
Keyword(s):  
Exchange Rate ◽  
Euro Area ◽  
Central Banks ◽  
Eurozone Crisis ◽  
Foreign Exchange Reserves ◽  
Reserve Currency ◽  
International Currencies ◽  
The Us ◽  
Exchange Rate Arrangements ◽  
Us Dollar

Abstract The paper analyses the official use of international currencies as reserve currency (store of value) and anchor currency (unit of account). Examining the role as a reserve currency we note that the US dollar is the main reserve currency even if it recorded a decline given the decrease of the value of the US dollar reserve holdings and the gradual diversification of the currencies used. Since 2010, the euro's share decreased continuously may be due to the Eurozone crisis and the euro's depreciation against the US dollar. Then we show that the US dollar dominates as an anchor currency, though it was temporary abandoned during crisis time, having more than a regional dimension. At the same time, the use of the euro in exchange rate arrangements appears mainly in the regions that have close links with the euro area. Over the last few years, we have witnessed a gentle orientation towards a multimonetary world, especially regarding the use of the international currencies as reserve currency given the diversification of the currencies in which central banks understand to hold international reserves and the increasing share of the nontraditional currencies in total foreign exchange reserves.

Hong Kong and Denmark will keep currency pegs

2015 ◽  
Keyword(s):  
Hong Kong ◽  
Exchange Rate ◽  
Foreign Exchange ◽  
Medium Term ◽  
Content Type ◽  
The Us ◽  
Exchange Rate Arrangements ◽  
Exchange Markets ◽  
Us Dollar ◽  
Currency Pegs

Subject The longevity and outlook for currency pegs. Significance The abandonment of the Swiss franc's three-year-old peg to the euro on January 15 put into question the longevity of pegged exchange rate arrangements. It also highlights how unusual such arrangements are today. Impacts The SNB will still have to continue to intervene in foreign-exchange markets to stabilise the Swiss franc. The SNB move will not cause Danish authorities to stop pegging the Danish krone to the euro. The near- and medium-term longevity of the Hong Kong dollar peg to the US dollar will not be questioned.

scholarly journals Has the Dollar Peg Served the Saudi Economy Well?

2017 ◽  
Vol 4 (1) ◽  
pp. 145 ◽  
Author(s):  
Ryadh M. Alkhareif ◽  
William A. Barnett ◽  
John H. Qualls
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Economic Performance ◽  
Exchange Rate Regimes ◽  
Bretton Woods ◽  
Advantages And Disadvantages ◽  
The Us ◽  
Exchange Rate Arrangements ◽  
Us Dollar ◽  
Historical Relationship

There are three major objectives of this paper: first, to examine the various exchange rate regimes and arrangements that have emerged over the last 40 years since the collapse of the Bretton Woods Agreement, focusing on the advantages and disadvantages of each, particularly as they relate to inflation and real economic growth, second, to analyze the historical relationship between the Kingdom’s various exchange rate regimes and the performance of its non-oil private sector, and third, to compare Saudi Arabia’s economic performance since 1986 (when the riyal was firmly pegged to the US dollar) with a number of other developed and developing countries that have followed different exchange rate arrangements. The findings of this paper confirm that the dollar peg has served Saudi Arabia well.

Dollar will remain the main global reserve currency

2015 ◽  
Keyword(s):  
Exchange Rate ◽  
Euro Area ◽  
Central Banks ◽  
Reserve Currency ◽  
Foreign Reserves ◽  
Content Type ◽  
Short Run ◽  
Political Uncertainties

Subject Composition of central banks' foreign reserves. Significance The dollar's share of foreign reserves held by central banks has risen from 60.8% in the second quarter of 2014 to 63.8% in the second quarter of 2015, according to the latest IMF data. One has to go back nearly ten years, to calendar 2005, to find such gains and even then the dollar's share increased by 1.4%, less than half the 3.0% increase in the four quarters since mid-2014. Impacts Exchange rate variations will drive the dollar's share of global foreign reserves in the short run. In the longer term, a freer floating renminbi could reduce China's use of the dollar as a reserve currency. A rekindling of political uncertainties in the euro-area could lead to a reduction in the euro's role as reserve currency.

The international strength of the euro will grow

2021 ◽  
Keyword(s):  
Euro Area ◽  
Financial Services ◽  
Raw Materials ◽  
Domestic Demand ◽  
Content Type ◽  
The Us ◽  
Us Dollar ◽  
Strategic Autonomy ◽  
Geopolitical Risks ◽  
The Eu

Significance The proposals identified areas where the euro could potentially become more dominant, such as the issuance of green bonds, digital currencies, and international trade in raw materials and energy. Ambitions to enhance the international leverage of the euro are being driven by the aim to strengthen EU strategic autonomy amid rising geopolitical risks. Impacts Developing its digital finance sector would be an opportunity for the EU to enhance its strategic autonomy in financial services. Challenging the US dollar would require the euro-area to rebalance its economy away from foreign to domestic demand. Member state division will prevent the economic reconfiguration the euro-area needed to make the euro a truly global currency.

Problem of Yuan Undervaluation in US-China Trade Relations

2012 ◽  
pp. 20-28
Author(s):  
A. Polivach
Keyword(s):  
Exchange Rate ◽  
National Currency ◽  
Chinese Government ◽  
Scientific Validity ◽  
Trade Relations ◽  
China Trade ◽  
The Us ◽  
World Economic ◽  
Us Dollar ◽  
World Economic Crisis

Before the world economic crisis the Chinese government restricted the sphere of the Yuan’s circulation exceptionally by the domestic market. Basically, until that time the Yuan was not freely convertible while the Chinese foreign trade transactions were operated with the help of the US dollar. This is a sufficient reason to state that the issue of Yuan’s underestimated exchange rate has no fundamental relevance. However, the crisis forced China to substantially extend the utilization of its national currency in the international settlements. This is especially true in case of mutual settlements with the neighbor countries. So far, presumably, the issue of Yuan’s underestimated exchange rate will, at last, receive a scientific validity only when the Chinese national currency will become fully convertible and the scales of its utilization will become comparable with those of the traditional hard currencies.

scholarly journals Macro Economic Challenges and Third Party Funds of Islamic Commercial Banks in Indonesia

2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Anik Anik ◽  
Iin Emy Prastiwi
Keyword(s):  
Exchange Rate ◽  
Money Supply ◽  
Time Series Data ◽  
Data Gathering ◽  
Third Party ◽  
Series Data ◽  
Monthly Data ◽  
The Us ◽  
Us Dollar ◽  
Gathering Data

This article aims to determine the effect of inflation, the BI Rate, the exchange rate of the rupiah to the US dollar, and the amount of money supply for Third Party Funds (TPF) in Indonesians’ Islamic Banks during 2013-2016. This research method uses multiple regression analysis with time series data; gathering data from 48 samples of which are monthly data on the variables.  The result of this research find that the inflation and exchange rate variables have no significant effect on TPF, while the BI Rate variable and the money supply have a significant effect on TPF. In doing so, Islamic banking can pay serious attention to the BI rate and the money supply and in this study the BI rate on the direction of TPF. Keywords: inflation, BI rate, exchange rate, Third Party Funds

scholarly journals Cointegration of Stock Market and Exchange Rate in Indonesia

2019 ◽  
Vol 2 (2) ◽  
pp. 125 ◽  
Author(s):  
Pribawa E Pantas ◽  
Muhamad Nafik Hadi Ryandono ◽  
Misbahul Munir ◽  
Rofiul Wahyudi
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Capital Market ◽  
Global Financial Crisis ◽  
The Us ◽  
Us Dollar ◽  
The Exchange Rate ◽  
Johansen Cointegration Test ◽  
The Global Financial Crisis

This study aims to determine the long-term relationship between stock market and exchange rate in Indonesia. The research method used is Johansen cointegration test. The results of this study found no cointegration between the variables tested. Thus the exchange rate, JII, and IHSG have no relationship in the long term. The fluctuation of the rupiah exchange rate in recent years did not generally affect the performance of stock indices especially after the global financial crisis of 2008. This shows the capital market in Indonesia has a good performance so that it is not so sensitive to the sentiment of the decline in the rupiah against the US dollar. This finding is in line with the findings of Syahrer (2010) which states the exchange rate has no effect on the stock market.

scholarly journals Analisis Pengaruh Profitabilitas, Kebijakan Dividen, Inflasi dan Nilai Tukar terhadap Nilai Perusahaan

2020 ◽  
Vol 1 (1) ◽  
pp. 160-170
Author(s):  
Annisa Pujiati ◽  
Fatmi Hadiani
Keyword(s):  
Exchange Rate ◽  
Firm Value ◽  
Sampling Method ◽  
Dividend Policy ◽  
Secondary Data ◽  
Construction Sector ◽  
The Us ◽  
Sample Data ◽  
Negative Effect ◽  
Us Dollar

The purpose of this research is to determine the effect of profitability, dividend policy, inflation, and exchange rates on firm value. The population of this study is the property, real estate, and building construction sector companies listed on ISSI for the 2014-2018 period. In determining the sample data, this study used a purposive sampling method and obtained a sample of 9 companies. Research data is taken from secondary data, namely performance summary reports and reports on inflation and the US dollar exchange rate. The analytical method used to solve the problem in this research is path analysis using the WarpPLS 7.0 application. From this research, it is found that the lower profitability (ROE) and dividend policy (DPR) has a positive  and significant effect on firm value (PBV), inflation has a negative and insignificant effect on firm value (PBV) and the exchange rate (US$) has a negative effect. and significant to firm value (PBV).

scholarly journals Testing the Fair Game Hypothesis for US Dollar/Albanian Lekë Exchange Rate Over the Period January 1994- December 2012

2013 ◽  
Vol 2 (4) ◽  
pp. 311
Author(s):  
Llambrini Sota ◽  
Fejzi Kolaneci
Keyword(s):  
Exchange Rate ◽  
Nominal Exchange Rate ◽  
Rate Process ◽  
Level Of Confidence ◽  
The Us ◽  
Fair Game ◽  
Us Dollar

The purpose of the paperis to test the fair game hypothesis for exchange rate process USDollar / Albanian Lekë over theperiod January 1994 – December 2012.The results of this study include: The fairgame hypothesis is rejected for mean monthlyexchange rate US Dollar/Albanian Lekë over the period January 1994 – December 2012at 99.99% level of confidence. Day – to –dayfluctuations of the nominal exchange rateUS Dollar/ Albanian Lekë during the period 1 January 2008 – 31 December 2008 followan unfair game process at99.99% level of confidence.The fair game hypothesis isrejected for mean monthly exchange rateover the period January 2008 – December 2012at 95% level of confidence. Day – to-day fluctuations of nominalexchange rate USDollar/Albanian Lekë during the period1 January 2004 – 31 December 2012 follow anunfair game at 99.99% levelof confidence. A similar result holds for relative firstdifferences of the daily exchange rate USDollar/Albanian Lekëat 99.99% level ofconfidence. These findings are noteworthy because it has long been thought of that themovements in the US dollar / Albanian lekë nominal exchange rate must be a fair game.

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