Exchange

Part 1: As per Exchange rate policy on 15th March 2015: A.] The recent changes in china’s exchange rate policy as exemplified on 15th March 2014 are:  China made its currency Yuan a much free floating currency by loosening and widening its daily trading limit against U.S dollar. (WSJ, 2014)  The china’s central bank and people’s bank of china set a daily trading rate called the parity rate for Yuan against the U.S.dollar, allowing the widening of the daily trading band to push from its…

• Nominal exchange rate The nominal exchange rate is the value of one currency that can be exchanged in terms of another currency, that is, how much domestic currency is needed in order to purchase a foreign currency or vice-versa. For example, assume that 1 US Dollar costs Rs 35. The nominal exchange rate can be expressed in the following ways: 1 US Dollar = Rs 35, or 1 Mauritian rupee = 0.029 US Dollar A decrease in the Mauritian rupee towards the US Dollar is called an appreciation of the…

1.3 The impact of macroeconomic releases on exchange rates Economic releases have an important role in the foreign exchange markets. Indeed, macro announcements produce effects on both returns and volatility. Neely and Dey (2010) show that researchers have long studied the reaction of foreign exchange returns to macroeconomic announcements and by doing so, they are now able to infer how markets react to news and how order flow helps impound public and private information into prices. Also,…

between Ho Chi Minh City Stock Exchange (HSX) and The New York Stock Exchange (NYSE) in terms of their operations and trading systems. Some recommendations are also made about what HSX could learn from the NYSE. 1.2 Background and introduction to the research The financial market plays an integral role in the world economy. This market includes foreign exchange markets, stock markets and capital markets. Of these, the stock market, which comprises various stock exchanges, plays a leading…

The second selection is exchange rate determination and behavior/exchange rate risk management. Exchange rates of one country will be different from another country due to supply and demand. These are rates are changing everyday and are found on financial markets by banks. The exchange rate of a country is important for the country’s health and trade. Many factors can alter a country’s exchange rate, such as inflation, interest rates, account deficits, economic performance and political reasons.…

The health information exchanges are very significant in the modern healthcare systems. The health information exchanges (HIE) allow the movement of clinical information in disparate information systems in the different locations. The HIE also ensures that the information that is transmitted is still relevant in meaning. HIE is very critical in ensuring that there is faster access to health information, and quality services are also provided to the patients. It is evident that the HIE holds the…

What is a Foreign Exchange Market? The Foreign Exchange Market, or in short Forex; is a market that consists of global currencies in which it introduces features; such as, buying, selling, and interchanges currencies at the current or determined price. The Foreign Exchange market is recognized the most largest financial institute in the world and it is open twenty four hours a day and about over 5 trillion dollars are traded on a daily bases. In fact, many investors invests their wealth to earn…

\textbf{Trade-wighted measure of exchange rates volatility}: The trade-weighted exchange rates, commonly known as Nominal Effective Exchange Rates (NEER), is the geometric weighted average of a basket of bilateral exchange rates (Klau and Fung 2006). Real EER (REER) is the nominal EER adjusted with the respective relative price index. Here the weights are based on manufacturing trade flows including both bilateral trade and third-market competition by double-weighting. The BIS EER calculation is…

Data on Brussels Stock Exchange from Antwerp’s SCOB database were used to investigate if stock returns have any relationship with variables, such as size, beta, dividend yield, and risks. The sample covered periods of 1873 to 1914. Using Fama-MacBeth regression model, the study finds that average stock returns have no relationship with size, risk, and beta, but establishes weak relationship between dividend yield and stock returns. The study finds strong momentum in the sample data. The results…

In South Africa, their exchange rate system is set up as floating system. Essentially the rand exchange rate will be determined by the market. Similar to other systems, the Reserve Bank can influence the rate by buying and selling in the foreign exchange market, yet they typically try not to intervene with the market aside from building up foreign exchange reserves (although the Reserve Bank says this is to manage liquidity and not to influence the exchange rate) (Resbank). There has been…