Potential for Further Evolution of CRDs

2022 ◽  
pp. 189-196
Keyword(s):  
Exchange Rate ◽  
Currency Crisis ◽  
Sudden Change ◽  
Precious Metals ◽  
Interesting Possibility ◽  
The Exchange Rate ◽  
Aluminium Strip ◽  
Initial Change

Although Grondona prepared detailed guidelines that his system should be implemented in relation to durable, essential, basic imported commodities, he also understood that, once established successfully, CRDs' operations could evolve in various ways in order to achieve greater benefits. For example, the inclusion of precious metals such as gold and silver, albeit on a somewhat different basis than industrial commodities, is an interesting possibility. Grondona also recommended that other products such as basic manufactured components like standardised steel or aluminium strip could be included. Another potential evolution is a CRD's role in a currency crisis: a sudden change in the exchange rate would be countered to some extent by a CRD being asked to sell or buy commodities, which would tend to resist the initial change. A CRD's terms of operation might be adjusted in order to strengthen its influence as such a countermeasure.

scholarly journals Does Monetary Policy Stabilize the Exchange Rate Following a Currency Crisis?

1999 ◽  
Vol 99 (42) ◽  
pp. 1 ◽  
Author(s):  
Ilan Goldfajn ◽  
Poonam Gupta ◽  
◽  
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Currency Crisis ◽  
The Exchange Rate

Precious metals, oil and the exchange rate: contemporaneous spillovers

2016 ◽  
Vol 49 (38) ◽  
pp. 3863-3879 ◽  
Author(s):  
Adrian Fernandez-Perez ◽  
Bart Frijns ◽  
Alireza Tourani-Rad
Keyword(s):  
Exchange Rate ◽  
Precious Metals ◽  
The Exchange Rate

scholarly journals Differences in Exchange Rate Effects on Production Growth: the Case of Iranian Industries

2020 ◽  
Vol 15 (3) ◽  
pp. 16-35
Author(s):  
Ebrahimi Sajad ◽  
Ghaderi Omid ◽  
Bayat Saeed
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange Market ◽  
Currency Crisis ◽  
Dynamic Panel Data ◽  
Output Growth ◽  
Raw Material ◽  
Positive Effects ◽  
Rate Effects ◽  
The Exchange Rate ◽  
Exchange Rate Depreciation

Abstract There has been a long debate about whether exchange rate depreciation promotes output growth or not. In this context, we use Iran’s foreign exchange market which has had large fluctuations in recent years. Since the exchange rate influence on industries’ activity through different mechanisms, we examine the exchange rate effects in the industry level. To do this, the Iranian manufacturing industries data at 4-digit ISIC level are used from 2011 to 2017. The results of GMM dynamic panel data estimations show that the effects of real exchange rate depreciation on average, are positive in the non-crisis periods. But this relationship does not remain valid in a currency crisis conditions. Accordingly, depreciation does not have any positive effects during the currency crisis. Also, estimation results indicate the exchange rate volatility negatively affects industrial production in all periods. Our findings confirm that due to different characteristics of industries, the effects of exchange rate on production vary among them. So, export orientation, access to the preferential rate and higher level of raw material inventory amplify the positive effect of the real depreciation while import dependency and a higher level of final goods inventory fade the effect and turn into negative in some industries.

Faktor-Faktor Yang Mempengaruhi Nilai Tukar Dollar Amerika Serikat Terhadap Rupiah Tahun 2000–2013

2017 ◽  
Vol 1 (2) ◽  
pp. 177-191
Author(s):  
Rizki Rahma Kusumadewi ◽  
Wahyu Widayat
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Money Supply ◽  
Time Series Data ◽  
The United States ◽  
Economic Conditions ◽  
Series Data ◽  
Arch Model ◽  
United States Dollar ◽  
The Exchange Rate

Exchange rate is one tool to measure a country’s economic conditions. The growth of a stable currency value indicates that the country has a relatively good economic conditions or stable. This study has the purpose to analyze the factors that affect the exchange rate of the Indonesian Rupiah against the United States Dollar in the period of 2000-2013. The data used in this study is a secondary data which are time series data, made up of exports, imports, inflation, the BI rate, Gross Domestic Product (GDP), and the money supply (M1) in the quarter base, from first quarter on 2000 to fourth quarter on 2013. Regression model time series data used the ARCH-GARCH with ARCH model selection indicates that the variables that significantly influence the exchange rate are exports, inflation, the central bank rate and the money supply (M1). Whereas import and GDP did not give any influence.

Pengaruh Faktor Fundamental, Risiko Sistematis Dan Ekonomi Makro Terhadap Return Saham Syariah Yang Tergabung Di Jakarta Islamic Index (JII) Pada Periode 2010 – 2014

2017 ◽  
Vol 24 (1) ◽  
pp. 54-70
Author(s):  
Hasanah Setyowati ◽  
Riyanti Ningsih
Keyword(s):  
Exchange Rate ◽  
Stock Exchange ◽  
Systematic Risk ◽  
Secondary Data ◽  
Analysis Model ◽  
Macroeconomic Factors ◽  
Return On Equity ◽  
Equity Ratio ◽  
Regression Techniques ◽  
The Exchange Rate

This study aimed to obtain empirical evidence on the influence of fundamental factors, systematic risk and macroeconomics on the returns Islamic stock of companies incorporated in the Jakarta Islamic Index in 2010-2014. The variables used were the fundamental factors that are proxied by Earning Per Share (EPS), Return on Equity (ROE), Debt to Equity Ratio (DER); Systematic risk is proxied by Beta Shares; macroeconomic factors is proxied by the inflation rate and the exchange rate. The samples of this study are the enterprises incorporated in Jakarta Islamic Index (JII) at the Indonesian Stock Exchange. The sampling method was using purposive sampling. There were 12 samples of Islamic stocks that meet the criteria to be used as samples. The analysis model used is multiple linear regression techniques and the type of data used is secondary data. The study found that all variables, which are Earning Per Share (EPS), Return on Equity (ROE), Debt to Equity Ratio (DER), Beta stock, inflation and the exchange rate do not significantly affect the return of sharia stock either simultaneously or partially.

On the Exchange Rate Policy

2010 ◽  
pp. 21-28
Author(s):  
K. Yudaeva
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Inflation Targeting ◽  
Exchange Rate Policy ◽  
Institutional Changes ◽  
Crisis Period ◽  
Local Currency ◽  
High Inflation ◽  
Rate Policy ◽  
The Exchange Rate

The level of trust in the local currency in Russia is very low largely because of relatively high inflation. As a result, Bank of Russia during crisis times can not afford monetary policy loosening and has to fight devaluation expectations. To change the situation in the post-crisis period Russia needs to live through a continuous period of low inflation. Modified inflation targeting can help achieve such a result. However, it should be amended with institutional changes, particularly development of hedging instruments.

The influence of inflation targeting on the pass-through effect of the exchange rate

2018 ◽  
pp. 70-84
Author(s):  
Ph. S. Kartaev ◽  
Yu. I. Yakimova
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
Exchange Rate ◽  
Inflation Targeting ◽  
Policy Regime ◽  
Short And Long Term ◽  
The Exchange Rate ◽  
Pass Through ◽  
The Impact

The paper studies the impact of the transition to the inflation targeting regime on the magnitude of the pass-through effect of the exchange rate to prices. We analyze cross-country panel data on developed and developing countries. It is shown that the transition to this regime of monetary policy contributes to a significant reduction in both the short- and long-term pass-through effects. This decline is stronger in developing countries. We identify the main channels that ensure the influence of the monetary policy regime on the pass-through effect, and examine their performance. In addition, we analyze the data of time series for Russia. It was concluded that even there the transition to inflation targeting led to a decrease in the dependence of the level of inflation on fluctuations in the ruble exchange rate.

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