Financial Exchange Rates And International Currency Exposures

Author : Philip R. Lane,Jay C. Shambaugh
Publisher : Unknown
Page : 52 pages
File Size : 44,7 Mb
Release : 2007
Category : Capital movements
ISBN : 3865584586

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Financial Exchange Rates and International Currency Exposures by Philip R. Lane,Jay C. Shambaugh Pdf

Our goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency exposures for a large panel of countries over 1990-2004. We show that trade-weighted exchange rate indices are insufficient to understand the financial impact of currency movements. Further, we demonstrate that many developing countries hold short foreign-currency positions, leaving them open to negative valuation effects when the domestic currency depreciates. However, we also show that many of these countries have substantially reduced their foreign currency exposure over the last decade. Last, we show that our currency measure has high explanatory power for the valuation term in net foreign asset dynamics: exchange rate valuation shocks are sizable, not quickly reversed and may entail substantial wealth shocks.

Author : Philip R. Lane
Publisher : Unknown
Page : 64 pages
File Size : 48,9 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1306165261

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Financial Exchange Rates and International Currency Exposures by Philip R. Lane Pdf

Our goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency exposures for a large panel of countries over 1990-2004. We show that trade-weighted exchange rate indices are insufficient to understand the financial impact of currency movements. We show that our currency measure has high explanatory power for the valuation term in net foreign asset dynamics: exchange rate valuation shocks are sizable, not quickly reversed and may entail substantial wealth redistributions. Further, we demonstrate that many developing countries hold short foreign-currency positions, leaving them open to negative valuation effects when the domestic currency depreciates. However, we also show that many of these countries have substantially reduced their foreign currency exposure over the last decade.

Author : Philip R. Lane,Jay C. Shambaugh
Publisher : Unknown
Page : 0 pages
File Size : 45,9 Mb
Release : 2008
Category : Electronic
ISBN : 3865584594

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Financial Exchange Rates and International Currency Exposures by Philip R. Lane,Jay C. Shambaugh Pdf

Author : Yin-Wong Cheung,Frank Westermann
Publisher : MIT Press
Page : 323 pages
File Size : 47,5 Mb
Release : 2017-07-14
Category : Business & Economics
ISBN : 9780262036405

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International Currency Exposure by Yin-Wong Cheung,Frank Westermann Pdf

Issues in debates about foreign currency exposure—the denomination of liabilities or assets in foreign currency. The foreign currency denomination of contracts in international transactions can lead to international currency exposure at the country level with important economic and policy implications. When debts are denominated in foreign currency and revenues in domestic currency, exchange rate fluctuations can result in balance sheet effects for countries with either net asset or liability positions. Moreover, currency mismatch between assets and liabilities can be a cause for crises in developing and emerging economies. This book looks at the issues surrounding foreign currency exposure in today's increasingly integrated world economy. The contributors draw on cross-country as well as country-specific data. They consider international currency risk after the Swiss franc ended its one-sided peg with the euro, for example, and the foreign exchange positions of firms in Turkey and Russia. Other contributors take macroeconomic perspectives, examining the potential effects of exchange rate realignment, the pressure to appreciate on countries with current account surpluses, and the currency exposure in international trade. Finally, contributors consider the issue from finance and political economy perspectives, addressing the phenomenon of the forward premium puzzle and discussing geopolitical aspects ascending currencies. Contributors Fatih Altunok, Huseyin Aytug, Agustín S. Bénétrix, Jörg Breitung, Paul De Grauwe, Eiji Fujii, Peter Garber, Juann H. Hung, Signe Krogstrup, Philip R. Lane, Katja Mann, Arif Oduncu, Gunther Schnabl, Maria V. Sokolova, Cédric Tille

Author : Luciana Juvenal,Deepali Gautam,Agustin Benetrix,Martin Schmitz
Publisher : International Monetary Fund
Page : 67 pages
File Size : 50,9 Mb
Release : 2019-12-27
Category : Business & Economics
ISBN : 9781513525372

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Cross-Border Currency Exposures by Luciana Juvenal,Deepali Gautam,Agustin Benetrix,Martin Schmitz Pdf

This paper provides a dataset on the currency composition of the international investment position for a group of 50 countries for the period 1990-2017. It improves available data based on estimates by incorporating actual data reported by statistical authorities and refining estimation methods. The paper illustrates current and new uses of these data, with particular focus on the evolution of currency exposures of cross-border positions.

Author : Jessica James,Ian Marsh,Lucio Sarno
Publisher : John Wiley & Sons
Page : 674 pages
File Size : 44,8 Mb
Release : 2012-05-29
Category : Business & Economics
ISBN : 9781118445778

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Handbook of Exchange Rates by Jessica James,Ian Marsh,Lucio Sarno Pdf

Praise for Handbook of Exchange Rates “This book is remarkable. I expect it to become the anchor reference for people working in the foreign exchange field.” —Richard K. Lyons, Dean and Professor of Finance, Haas School of Business, University of California Berkeley “It is quite easily the most wide ranging treaty of expertise on the forex market I have ever come across. I will be keeping a copy close to my fingertips.” —Jim O’Neill, Chairman, Goldman Sachs Asset Management How should we evaluate the forecasting power of models? What are appropriate loss functions for major market participants? Is the exchange rate the only means of adjustment? Handbook of Exchange Rates answers these questions and many more, equipping readers with the relevant concepts and policies for working in today’s international economic climate. Featuring contributions written by leading specialists from the global financial arena, this handbook provides a collection of original ideas on foreign exchange (FX) rates in four succinct sections: • Overview introduces the history of the FX market and exchange rate regimes, discussing key instruments in the trading environment as well as macro and micro approaches to FX determination. • Exchange Rate Models and Methods focuses on forecasting exchange rates, featuring methodological contributions on the statistical methods for evaluating forecast performance, parity relationships, fair value models, and flow–based models. • FX Markets and Products outlines active currency management, currency hedging, hedge accounting; high frequency and algorithmic trading in FX; and FX strategy-based products. • FX Markets and Policy explores the current policies in place in global markets and presents a framework for analyzing financial crises. Throughout the book, topics are explored in-depth alongside their founding principles. Each chapter uses real-world examples from the financial industry and concludes with a summary that outlines key points and concepts. Handbook of Exchange Rates is an essential reference for fund managers and investors as well as practitioners and researchers working in finance, banking, business, and econometrics. The book also serves as a valuable supplement for courses on economics, business, and international finance at the upper-undergraduate and graduate levels.

Author : Gary Shoup
Publisher : Routledge
Page : 548 pages
File Size : 44,6 Mb
Release : 2013-10-08
Category : Business & Economics
ISBN : 9781135926458

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International Guide to Foreign Currency Management by Gary Shoup Pdf

Financial managers rarely find a one-stop source for a complete course in currency management. Expanding on his work, Currency Risk Management, Gary Shoup builds a practical foreign currency management program. This extensive text covers everything managers and their consultants need to implement a program, from trends in exchange rates to understanding pricing determinants. He discusses in detail the market for currencies, price forecasting, exposure and risk management, managing accounting exposure, and managing strategic exposure.

Author : Yakov Amihud,Richard M. Levich
Publisher : Beard Books
Page : 268 pages
File Size : 55,8 Mb
Release : 2003
Category : Business & Economics
ISBN : 1587981599

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Exchange Rates and Corporate Performance by Yakov Amihud,Richard M. Levich Pdf

This is a reprint of a previously published book. It consists of a series of papers by experts in the field on how the exchange rate volatility of the 1980s affected the financial policies of international firms.

Author : Laurence S. Copeland
Publisher : Addison Wesley Publishing Company
Page : 392 pages
File Size : 44,6 Mb
Release : 1989
Category : Business & Economics
ISBN : UCSD:31822003786373

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Exchange Rates and International Finance by Laurence S. Copeland Pdf

Exchange Rates and International Finance provides a guide to the causes and consequences of exchange rate fluctuations. The orientation of the book is towards exchange rate determination with particular emphasis given to the contributions of modern finance theory.

Author : John N. Kallianiotis
Publisher : Unknown
Page : 0 pages
File Size : 45,7 Mb
Release : 2019
Category : Foreign exchange rates
ISBN : 1536165506

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Foreign Exchange Rates and International Finance by John N. Kallianiotis Pdf

History of monetary system --Balance of payments and exchange rates --The foreign exchange markets --Exchange rate determination and forecasting --Exchange rates and international parity conditions --Foreign currency derivatives --Foreign exchange exposure and its management --Multinational corporations and international cost of capital --Multinational capital budgeting --Foreign direct investment and portfolio theory --International trade finance --Political risk and its management.

Author : Robert Z. Aliber
Publisher : Springer
Page : 171 pages
File Size : 40,9 Mb
Release : 1978-06-17
Category : Business & Economics
ISBN : 9781349033621

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Exchange Risk and Corporate International Finance by Robert Z. Aliber Pdf

Author : Herman Kamil
Publisher : International Monetary Fund
Page : 54 pages
File Size : 41,7 Mb
Release : 2012-03-01
Category : Business & Economics
ISBN : 9781463950231

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How Do Exchange Rate Regimes Affect Firms' Incentives to Hedge Currency Risk? Micro Evidence for Latin America by Herman Kamil Pdf

Using a unique dataset with information on the currency composition of firms' assets and liabilities in six Latin-American countries, I investigate how the choice of exchange rate regime affects firms' foreign currency borrowing decisions and the associated currency mismatches in their balance sheets. I find that after countries switch from pegged to floating exchange rate regimes, firms reduce their levels of foreign currency exposures, in two ways. First, they reduce the share of debt contracted in foreign currency. Second, firms match more systematically their foreign currency liabilities with assets denominated in foreign currency and export revenues--effectively reducing their vulnerability to exchange rate shocks. More broadly, the study provides novel evidence on the impact of exchange rate regimes on the level of un-hedged foreign currency debt in the corporate sector and thus on aggregate financial stability.

Author : Brian Coyle
Publisher : Global Professional Publishi
Page : 194 pages
File Size : 45,9 Mb
Release : 2000
Category : Business & Economics
ISBN : 0852974388

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Hedging Currency Exposures by Brian Coyle Pdf

� Fully updated version of text formerly used for training by BPP � Diagrammatic representation of deal structures, pricing, and modeling � Full glossary of terms � International perspective, examples in US$ � Clear logical explanation of processes, markets, and products This manual explains the techniques for identifying and covering exposure to adverse movements in foreign exchange rates. It provides practical examples of transaction, translation, and economic risk and shows how a hedging strategy can be arrived at. The hedging strategy will depend upon whether the attitude to risk is adverse, seeking, or neutral. This book examines these attitudes in turn and compares these hedging methods through worked examples. Also included is an analysis of accounting and tax implications. This expansive new range of risk management texts has undergone extensive re-writing to give each book in the series an international perspective. Each explains and analyses core aspects of risk assessment and management in a way invaluable to students and useful to practitioners. All of these titles adopt a practical and clear approach to their subject. All are fully updated versions of a series of books previously produced by training experts at BPP.

Author : Thomas J. O'Brien
Publisher : Business Expert Press
Page : 142 pages
File Size : 40,7 Mb
Release : 2013-10-07
Category : Business & Economics
ISBN : 9781606497371

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Introduction to Foreign Exchange Rates by Thomas J. O'Brien Pdf

As managers expand their international business operations, they are confronted by the puzzling and vexing world of foreign exchange (FX) rates. This text is designed as a resource that can help managers quickly understand and navigate the FX market. The text may be used as an introductory module in a course in international finance, whether the course is oriented to international markets, international investments, or international corporate finance. The primary intended audience is an applied MBA course aimed at executives, managers, and would-be managers. After an introduction to foreign exchange (FX) rates, the text covers the important topic FX rate valuation. It is important for managers to understand when an FX rate is incorrectly valued, as this situation may have a bearing on strategic decisions to operate or invest overseas. The text also covers the mechanics of forward FX contracts, and their use in managing the risk of future foreign currency cash flows. In the case study included in the text, the case company is faced with FX exposure in the revenues of a proposed new foreign customer. The decision-maker applies the text material to evaluate whether the FX rate is over-, under-, or correctly valued. The final decision is whether to expand sales to the foreign market and whether to hedge the FX risk.

Author : J. Kallianiotis
Publisher : Springer
Page : 289 pages
File Size : 53,9 Mb
Release : 2013-10-02
Category : Business & Economics
ISBN : 9781137318886

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Exchange Rates and International Financial Economics by J. Kallianiotis Pdf

The recent financial crisis has troubled the US, Europe, and beyond, and is indicative of the integrated world in which we live. Today, transactions take place with the use of foreign currencies, and their values affect the nations' economies and their citizens' welfare. Exchange Rates and International Financial Economics provides readers with the historic, theoretical, and practical knowledge of these relative prices among currencies. While much of the previous work on the topic has been simply descriptive or theoretical, Kallianiotis gives a unique and intimate understanding of international exchange rates and their place in an increasingly globalized world.