scholarly journals EFFECTS OF FOREIGN CURRENCY EXCHANE RATES ON COMPETITIVENESS OF THE REPUBLIC OF SERBIA IN INTERNATIONAL BUSINESS

2019 ◽  
Vol 7 (12) ◽  
Author(s):  
Aleksandar Gajić ◽  
Radica Pavlović
Keyword(s):  
Economic Policy ◽  
Exchange Rate ◽  
Foreign Currency ◽  
Exchange Rate Regime ◽  
Exchange Rate Policy ◽  
Balance Of Payments ◽  
Economic Policies ◽  
The Exchange Rate ◽  
The Republic ◽  
High Level

In the era of globalization and international flows that carry the liberalization,deregulation and increased impact of international monetary institutions, as well asthe general macroeconomic environment and economic policies of the nationaleconomy have been crucial to the economic competitiveness in the internationalmarket. Exchange rate policy, as one of the factors of economic policy, has significantimplications for competitiveness, balance of payments and indebtedness. In thisregard, the purpose of this paper is to point out the exchange rate regime of theRepublic of Serbia, which has, by appreciation of currency reduced thecompetitiveness of domestic product, balance of payments deficit and a high level ofindebtedness. The work methodology is based on the processing of secondary datapublished in public sources for the period 2001-2012 of the Republic of Serbia inorder to obtain a representation of the analyzed data. The research results indicate thatthe real exchange rate of the dinar is almost double the official rate, and there is noparticular interest in exporting local products. Therefore, the monetary and foreignexchange as well as the overall economic policy appears as a catalyst for thedevelopment of Serbia's competitiveness in the international market, and it can beconcluded that the monetary-and-foreign exchange policy has not achieved economicobjectives although the stability of the exchange rate as a positive measure isconstantly emphasized by economic policy makers. The alleged stability cost Serbia alot, as evidenced by data from the balance of payments: a high deficit, high externaldebt and consequential debt slavery of Serbia.

scholarly journals The influence of the exchange rate policy on the trade of the Republic of Serbia in the conditions of the crisis: Trade legal and economic aspect

2020 ◽  
Vol 17 (4) ◽  
pp. 77-94
Author(s):  
Radica Pavlović ◽  
Rajko Bukvić
Keyword(s):  
Economic Policy ◽  
Exchange Rate ◽  
Law And Economics ◽  
Exchange Rate Policy ◽  
Trade Relations ◽  
Goods And Services ◽  
Modern Business ◽  
Rate Policy ◽  
The Exchange Rate ◽  
The Republic

Exchange of goods and services between the economic entities is determined by the instrument "Contract of Sale", which is one of the most common, most frequent and most numerous contracts in the economy. In the modern business conditions, and due to the process of globalization, deregulation and market liberalization, international trade has many significant aspects, first of all, having in mind the turbulence, complexity and uncertainty of business as well as the application of regulations that are subject to change. In addition, it can be significantly influenced by all kinds of the economic policy of the domicile country, but also indirectly by the dominant impact of international institutions. One of the elements of economic policy is the exchange rate, which, through the price and the exchange rate policy, has significant implications for trade agreements in legal transactions through positioning, competitiveness, growth and development of the Republic of Serbia in both the domestic and international markets. Therefore, when conducting trade relations, especially at the international level, it is necessary to have top experts in the field of law and economics in order to avoid the so-called principle of "victory of the stronger" in knowledge in this area, because in that case they would certainly make a much higher profit than usual. The aim of this paper is to link knowledge in the legal and economic domain, to focus on the effect of exchange rate policy and its impact on trade law and trade, bearing in mind all the implications listed and crucial in a crisis circumstances.

scholarly journals Euroisation in the Western Balkans: The Evidence for Macedonian Economy

2017 ◽  
Vol 8 (2) ◽  
pp. 307-315
Author(s):  
Tatjana Boshkov ◽  
Zoran Temelkov ◽  
Aleksandra Zezova
Keyword(s):  
Exchange Rate ◽  
Foreign Currency ◽  
Exchange Rate Regime ◽  
Extended Period ◽  
Emerging Countries ◽  
Western Balkans ◽  
Balkan Countries ◽  
High Level ◽  
Benefits And Costs ◽  
Prudential Policy

Abstract Euroisation is a problem with a long history and usually persistent phenomena. The high level of euroisation is common in emerging countries in Europe as in the countries with fixed exchange rate regime. In Western Balkan countries have been identified a strong presence of foreign currency. The fact is that transactions could take a place outside of the banking channels, which is not a case for FX-loan and FX-deposit ratios. It’s difficult to measure how much foreign money is in the economy. This is the reason to use data for currency substitution index. This index is high for Macedonia indicating high level of real euroisation. After the crisis, the levels are reduced (lower remittances from abroad). Considering the exchange rate experience of Macedonia, it’s likely to remain significantly euroised country for an extended period. IMF considers appropriate strategy which provides support for the gradual de-euroisation in maintaining macro-prudential policy and development of the domestic market. Another important strategy is the maintenance of prudent policies that mitigate foreign currency risks. The paper shows the persistence of FX mainly in Macedonian economy and discusses about benefits and costs, in light of the recent economic crisis.

Emerging Markets Central Banks Exchange Rate Policy

2011 ◽  
pp. 21-34 ◽  
Author(s):  
S. Andryushin ◽  
V. Kuznetsova
Keyword(s):  
Exchange Rate ◽  
Emerging Markets ◽  
Exchange Rate Regime ◽  
Central Banks ◽  
Exchange Rate Policy ◽  
Point Of View ◽  
Nominal Exchange Rate ◽  
Safeguard Measures ◽  
Rate Policy ◽  
The Exchange Rate

The article analyzes the emerging markets central banks exchange rate policy, while they choose the exchange rate regime in conditions of financial globalization. The authors present the new IMF exchange rate regimes taxonomy which separates them using historical data about nominal exchange rate developments. They identify some factors which affect the exchange rate regime option from the macroeconomic point of view. The article reviews some national markets safeguard measures from external shocks generated by international capital inflow or outflow.

scholarly journals SINGAPORE'S EXCHANGE RATE POLICY: SOME IMPLEMENTATION ISSUES

2007 ◽  
Vol 52 (03) ◽  
pp. 445-458 ◽  
Author(s):  
HWEE-KWAN CHOW
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Exchange Rate Regime ◽  
Policy Instrument ◽  
Exchange Rate Policy ◽  
Policy Framework ◽  
Successful Operation ◽  
Foreign Exchange Intervention ◽  
Rate Policy ◽  
The Exchange Rate

Reflecting the small open nature of its economy, Singapore has adopted an exchange rate-centered monetary policy framework since 1981. The exchange rate regime in Singapore is an intermediate regime that follows the basket-band-crawl system. With this managed float system, the MAS has successfully deterred speculators from attacking the domestic currency for most of the past three decades. At the same time, the flexibility accorded by the managed float system aided Singapore in escaping from the 1997–1998 Asian crisis relatively unscathed. In order to advance our understanding of the hitherto successful operation of Singapore's exchange rate policy, we examine the following three aspects of its implementation: (i) the use of the exchange rate instead of the interest rate as the key monetary policy instrument; (ii) the management of the currency basket in terms of foreign exchange intervention operations; and (iii) regulating the level of domestic liquidity alongside exchange rate policy. This paper also provides some insights on the challenges ahead that potentially face policymakers when implementing Singapore's exchange rate policy.

scholarly journals POST – CRISIS EXCHANGE RATE POLICY IN INDONESIA

2017 ◽  
Vol 2 (2) ◽  
Author(s):  
Abdul Hadi Ilman
Keyword(s):  
Exchange Rate ◽  
Capital Mobility ◽  
Exchange Rate Regime ◽  
Foreign Debt ◽  
International Market ◽  
Flexible Exchange Rate ◽  
Exchange Rate Policy ◽  
Asian Tigers ◽  
Rate Policy ◽  
The Exchange Rate

In 1997 Indonesia was hit by a severe financial crisis which led to the change of almost everything in the country, including the exchange rate regime; from managed floating to free floating or flexible exchange rate. It has been a major conclusion from academic debate that maintaining exchange rate at a certain level or band (soft peg) was no longer workable in the more integrated financial system, international market, and free flow of capital mobility across economy.Indonesia once was known as one of the “Asian Tigers” which were believed to be the next industrialized economies as was being indicated by astounding macroeconomic performance since the early 1990s. The exchange rate management, in which the objective was to have a competitiveness in the international market, was making a huge contribution to that performance. No one suspected those countries would be hit by the crisis until Thailand’s Bath was under attacked and suddenly it spread expeditiously to other economies.Domestically, economy of Indonesia was funded by foreign debt in the several years before crisis to leverage the economy, especially private sector. Thus, when the currency crisis was happening, the value of rupiah was depreciated so much and the central bank could not afford to stabilize the value of rupiah in the market. Then a huge amount of the dollar-denominated short term debt was suspected to default since the debt value in rupiah was becoming very large.

scholarly journals Relationships between exchange rate regime, real exchange rate volatility and currency structure of government bonds in emerging markets

2020 ◽  
Vol 20 (1) ◽  
pp. 3-22
Author(s):  
Viktar Dudzich
Keyword(s):  
Exchange Rate ◽  
Emerging Markets ◽  
Real Exchange Rate ◽  
Foreign Currency ◽  
Exchange Rate Regime ◽  
Exchange Rate Volatility ◽  
Exchange Rate Policy ◽  
Original Sin ◽  
Rate Policy ◽  
Real Exchange Rate Volatility

AbstractPublic foreign currency borrowing is a common problem of emerging markets. Scholars named it the original sin of foreign debt. It has a proven negative influence on economic growth and development, undermining financial stability, and increasing the probability of monetary crises. The roots of the original sin often lay in emerging markets’ institutional underdevelopment, with low-quality monetary policy, inappropriate exchange rate regime choice, and exchange rate mismanagement being stated among the most important causes. This paper evaluates the influence of the exchange rate policy on the emission of foreign currency sovereign bonds in emerging markets. The relationship is estimated using panel data and GMM approach, with exchange rate regime type (both de jure and de facto) and real exchange rate volatility serving as explanatory variables. The findings reveal that fixed exchange rate regime and high real exchange rate volatility is promoting the foreign currency borrowing. Thus countries that want to reduce the burden of the original sin should lean towards a more flexible exchange rate policy while maintaining their real exchange rate stable.

The Foreign Currency Exchange Rate Policy Up Until 1986

2020 ◽  
pp. 209-229
Author(s):  
Einar Lie
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Foreign Currency ◽  
Exchange Rate Regime ◽  
Exchange Rate Policy ◽  
International Exchange ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
Rate Policy ◽  
The Government

This chapter studies how Norges Bank came to play a central, technical role in maintaining and defending a stable krone exchange rate during the years 1946–86. This role was reflected in how the bank advised on the basis of a loyal position to the fixed krone exchange rate regime and to binding international exchange rate cooperation. In 1978, Norway backed out of the European fixed exchange rate cooperation, and during 1976–86, the krone was devalued ten times. Even though Norges Bank officially came to contribute to both recommending and carrying out this policy, the policy defied the strong ideals and viewpoints of the organization. The exchange rate policy, and the problems it led to in relation to the central bank, caused the government, in the first half of the 1980s, to push Norges Bank completely aside when it came to the shaping of Norwegian exchange rate policy. Nevertheless, much of the policy was still shaped inside the walls of the institution.

scholarly journals Notes on the Brazilian Crisis of 1997-99

2003 ◽  
Vol 23 (3) ◽  
pp. 376-404
Author(s):  
FRANCISCO L. LOPES
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Exchange Rate Regime ◽  
Capital Controls ◽  
Critical Issue ◽  
Exchange Rate Policy ◽  
The Real ◽  
Diagonal Band ◽  
Rate Policy ◽  
The Exchange Rate

ABSTRACT This paper deals with the Brazilian crisis of 1997-98 that lead to the exchange rate floating of January 1999. It starts by showing how exchange rate policy evolved since the Real Plan of 1994 and how the exchange rate regime became a critical issue when the crisis started in 1997. It discusses monetary policy during the crisis, the IMF program, the endogenous diagonal band and the decision to float as an alternative to capital controls and default. This five-year drama ended surprisingly well with a benign float, but it is useful to know its details, with the usual mix of economic de- bate, personality clashes and historical fatality.

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