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| | Exchange rate regime - Wikipedia, the free encyclopedia |
 | | The exchange rate regime is the way a country manages its currency in respect to foreign currencies and the foreign exchange market. | | | In case of a separate currency, also known as a currency board arrangement, the domestic currency is backed one to one by foreign reserves. | | | Pegged with horizontal bands: The currency is allowed to fluctuate in a fixed band (bigger than 1%) around a central rate. |
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http://en.wikipedia.org/wiki/Exchange_rate_regime
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| | Some Reflections on Monetary Institutions and Exchange-Rate Regimes |
| | Pegged rates, such as those that were employed throughout most of Asia and in Russia and Brazil before the recent currency crises, require a monetary authority to manage both the exchange rate and monetary policy. | | | In consequence, by January 1998, the rupiah currency in circulation was growing by over 35% per month and the rupiah's exchange rate was collapsing at a rate unprecedented for a currency in a country not subject to a war, a fiscal crisis or a hyperinflation. | | | b) choose a new reserve currency and fix the exchange rate of the Montenegrin marka to the new currency at the rate then prevailing between the new reserve currency and the former reserve currency. |
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http://www.geocities.com/Eureka/Concourse/8751/edisi04/hanke100.htm
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| | Benjamin J. Cohen, Bretton Woods System |
| | The pegged rate regime was manifestly biased against frequent changes of currency values, since states had to demonstrate the existence of a fundamental disequilibrium before they could alter their par values; yet governments were left with few other instruments, other than capital controls, to deal with payments disturbances. | | | The pegged rate system was incapable of coping with widening payments imbalances, and the confidence problem was worsening as speculators were encouraged to bet on devaluation of the dollar or revaluations of the currencies of Europe or Japan. | | | Underlying their choice of exchange rate system, for example, seemed a clear expectation that beyond the postwar transitional period (itself expected to be brief) payments imbalances would not be excessive or require sacrifice of domestic stability for the sake of external equilibrium. |
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http://www.polsci.ucsb.edu/faculty/cohen/inpress/bretton.html
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| | Howstuffworks "How Exchange Rates Work" |
| | If a sudden demand for a currency were to drive up the exchange rate, the national bank would have to release enough of that currency into the market to meet the demand. | | | When people realize that their currency isn't worth as much as the pegged rate indicates, they may rush to exchange their money for other, more stable currencies. | | | The system can backfire, however, if the real world market value of the currency is not reflected by the pegged rate. |
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http://money.howstuffworks.com/exchange-rate4.htm
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| | [No title] |
| | Pegging the exchange rate at an artificial level, and in the presence of an inconsistent fiscal policy is, perhaps, the most common example of this type of practice. | | | In a country with fixed exchange rates the authorities should react to a negative shock -- a worsening of the terms of trade or a decline in capital inflows—by tightening monetary and fiscal policies, until external balance is re-established. |
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http://www.geocities.com/Eureka/Concourse/8751/edisi04/draft3.htm
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| | Economic Issues No. 13 -- Fixed or Flexible?--Getting the Exchange Rate Right in the 1990s |
| | As mentioned earlier, if interest rates and monetary policy are "locked in" by an exchange rate anchor, the burden of adjustment falls largely on fiscal policy–that is, government spending and tax policies. | | | The ranking of fixed and flexible exchange rate regimes depends on the nature and source of the shocks to the economy, policymakers’ preferences (that is, the type of costs they wish to minimize), and the structural characteristics of the economy. | | | Even with a peg, the authorities still retain some flexibility, such as an ability to shift the inflationary cost of running fiscal deficits into the future. |
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http://www.imf.org/external/pubs/ft/issues13/index.htm
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| | Currency Areas, Exchange Rate Systems and International Monetary Reform - Robert Mundell |
| | Italy had a fixed exchange rate from the post war period until 1971, and throughout this period recognized that it had to maintain fiscal balance as well as pursue a monetary policy that would keep the balance of payments in equilibrium. | | | Very high inflation rates are typically caused by budget deficits financed by the central bank. | | | Their currencies were pegged, not very efficiently, to the dollar, which was strongly appreciating against the yen and currencies that stayed pegged had also to appreciate. |
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http://www.columbia.edu/~ram15/cema2000.html
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| | Pegged exchange rate - Definition/Meaning |
| | Exchange rate whose value is pegged to another currency's value or to a unit of account. | | | Not only can you lower your monthly costs, but you can use equity to purchase and additional property. |
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http://www.thefinancialreference.com/glossary/pegged-exchange-rate.htm
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| | Lessons from the Brazilian Devaluation |
| | Those mechanisms include fully floating exchange rates, under which the market sets the price of the currency; and fully fixed exchange rates, as with a currency board, under which governments essentially abdicate the authority of their central banks. | | | Brazil's pegged currency, high interest rates, issuance of short-term dollar-denominated debt and demonstrated lack of urgency in introducing economic reforms created an environment that inhibited self-sustaining growth. | | | If a government refuses to cut spending under those conditions, or if it has high debt, as was the case in Brazil, fiscal deficits are bound to grow and continue to undermine the pegged rate. |
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http://www.cato.org/cgi-bin/scripts/printtech.cgi/dailys/02-18-99.html
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| | Floating And Fixed Exchange Rates |
| | A pegged currency can also help to lower inflation rates and generate demand, which results from greater confidence in the stability of the currency. | | | In order to maintain the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market in return for the currency to which it is pegged. | | | Just like the price of any asset, the exchange rate is the price at which you can buy that currency. |
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http://www.investopedia.com/articles/03/020603.asp
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| | JEC Press Release |
| | Another way of establishing fixed exchange rates is to establish a common multinational currency, like the twelve European countries that have replaced their separate national currencies with the euro. | | | A floating exchange rate can work well when supported by an appropriate framework, including a commitment to low inflation, protection from short-term political pressures, and accountability for achieving monetary stability. | | | Contrary to a widespread impression, the Argentine system was not an orthodox currency board, and close observers of the system long ago identified its unorthodox features as potential sources for a conflict of policy goals and subsequent exchange-rate troubles. |
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http://www.house.gov/jec/press/2002/01-25-02.htm
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| | JEC Press Release |
| | WASHINGTON, DC -- The role of pegged exchange rates in generating many international currency crises is documented in a new study released today by Joint Economic Committee Chairman Jim Saxton. | | | The study, Features and Policy Implications of Recent Currency Crises, describes what characteristics major currency crises during the last ten years have shared, and what the implications are for preventing future crises. | | | Saxton concluded, "The United States should not, either directly or through international financial institutions, support currency arrangements that we know are likely to fail. |
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http://www.house.gov/jec/press/2001/11-01-01.htm
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| | ROUNDUP Hong Kong says no change to its pegged rate system after China move - Forbes.com |
| | Hong Kong's own pegged system dates back to 1983 when the local currency was fixed at 7.80 to the US dollar as the then British authorities sought to maintain confidence in the territory in the face of massive uncertainty during talks with Beijing for the return of the colony to Chinese rule in 1997. | | | The currency was fixed at 8.11 yuan to the dollar compared to the old rate of 8.2765 yuan, sparking an immediate and sharp fall in the US unit against several Asian currencies. | | | China today revalued its currency by some two percent and scrapped the yuan's decade-old peg to the dollar in favour of a managed float against a basket of currencies. |
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http://www.forbes.com/home_asia/feeds/afx/2005/07/21/afx2151334.html
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| | Made Event Message Board - Argentina Update |
| | The Peso is the monetary unit of Argentina, and it has seen worse times than at current, but it is still not the most advantageous currency to be left holding. | | | The government has made debt swap offers to outside investors on its debt, but these have come in the form of long-term new issue bonds, most not maturing for 8-32 years, and carrying a minimal.05-1% interest rate — none too promising for those looking to recoup their losses. | | | From an investment perspective, foreign companies are offered numerous incentives to invest directly in Argentina. |
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http://www.madeevent.com/bbs/archive/index.php/t-4578
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| | Pegged - Wikipedia, the free encyclopedia |
| | a pegged currency, more formally called a fixed currency | | | a pegged exchange rate, more formally called a fixed exchange rate | | | This is a disambiguation page — a list of pages that otherwise might share the same title. |
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http://en.wikipedia.org/wiki/Pegged
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| | An analysis of pegged exchange rate regime between Bhutan and India |
| | Bhutan’s status as a small and open economy is a further reason to favour a currency peg | | | This paper investigates whether the pegged exchange rate between the Bhutanese and Indian currencies is the best system for Bhutan’s economy. | | | This paper analyse the likely implications of changing the currency regime, drawing on the economic theory of optimal currency areas. |
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http://www.eldis.org/static/DOC15570.htm
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| | Regional: Middle East: Bahrain: Business and Economy - Open Site |
| | In well-to-do Bahrain, petroleum production and refining account for about 60% of export receipts, 60% of government revenues, and 30% of GDP. | | | Bahraini dinars per US dollar - 0.3760 (fixed rate pegged to the US dollar) |
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http://open-site.org/Regional/Middle_East/Bahrain/Business_and_Economy
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| | CIA - The World Factbook -- Field Listing - Exchange rates |
| | note: in 2002, the afghani was revalued and the currency stabilized at about 50 afghanis to the dollar; before 2002, the market rate varied widely from the official rate | | | note: during 1998, the exchange rate splintered into four distinct rates; in January 1999 the government floated the guilder, but subsequently fixed it when the black-market rate plunged; in January 2004, the government introduced the Surinamese dollar as replacement for the guilder, tied to a US dollar-dominated currency basket | | | Cuban pesos per US dollar - 1 (nonconvertible, official rate, for international transactions, pegged to the US dollar); convertible peso sold for domestic use at a rate of 27 pesos per US dollar by the Government of Cuba (2002) |
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http://www.phatnav.com/factbook/fields/2076.html
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