The document summarizes information about exchange rates, including:
- A team of 5 students studying for an MBA at the University of Education in Lahore.
- Key topics covered include the definition of exchange rate, factors influencing exchange rates, types of exchange rates, and the impacts and advantages/disadvantages of fixed and floating exchange rate systems.
- Fixed exchange rates provide stability but limit a central bank's ability to respond to economic conditions, while floating rates allow more flexibility to monetary policy but with increased volatility.
A country's forex exchange rate provides a window to its economic stability, which is why it is constantly watched and analyzed. If you are thinking of sending or receiving money from overseas, you need to keep a keen eye on the currency exchange rates.
Floating exchange rate system in indiaHimani Gupta
Managed floating exchange rate system, Evolution of ERS in India, Objectives of Exchange rate management, Trends in exchange rate, appreciation and depreciation
*Importance of bonds and interest rates in the macro economy.
*Structure of interest rates in Sri Lanka
*Current interest rate environment
*Relationship between interest rates and bond prices
*Importance of interest rates and bonds in setting monetary policy
here we are explaining exchange rate movements, how the equilibrium exchange rate is determined, what kind of factor that affect the equilibrium exchange rate
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A country's forex exchange rate provides a window to its economic stability, which is why it is constantly watched and analyzed. If you are thinking of sending or receiving money from overseas, you need to keep a keen eye on the currency exchange rates.
Floating exchange rate system in indiaHimani Gupta
Managed floating exchange rate system, Evolution of ERS in India, Objectives of Exchange rate management, Trends in exchange rate, appreciation and depreciation
*Importance of bonds and interest rates in the macro economy.
*Structure of interest rates in Sri Lanka
*Current interest rate environment
*Relationship between interest rates and bond prices
*Importance of interest rates and bonds in setting monetary policy
here we are explaining exchange rate movements, how the equilibrium exchange rate is determined, what kind of factor that affect the equilibrium exchange rate
With CabMe , we try to make your journey more easy and enjoyable. We offer one way, two way cabs and travel packages as well.We are a group of sapient BITSians who based CabMe on one simple idea – You’re the one who’s travelling, so you should get choose how.
Visit www.cabme.in
With CabMe , we try to make your journey more easy and enjoyable. We offer one way, two way cabs and travel packages as well.
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International Financial Management
Presentation Subject
EXCHANGE RATE DETERMINATION
Submitted to
Lecturer:Ms.Nilufar Sultana
Department of Finance
Faculty of Business Administration
Premier University, Chittagong.
Semester: 8th Section: “A” Batch :22nd
Department : Finance
Group Name: D
Premier University[B.B.A]
International Financial Management
Presentation Subject
EXCHANGE RATE DETERMINATION
Submitted to
Lecturer:Ms.Nilufar Sultana
Department of Finance
Faculty of Business Administration
Premier University, Chittagong.
Semester: 8th Section: “A” Batch :22nd
Group Name: D
Balance of Payments and Exchange Rate PPT.pptxHimaanHarish1
Balance of Payments , Components of BOP, Current account; Causes of disequilibrium in Balance of Payments, Foreign Exchange rate,Devaluation, Appreciation , Revaluation and Depreciation,
8 Economic Factors That Affect The Forex Market | Valiant MarketsValiant Markets
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The Relation between Balance of Payment and Foreign Exchange Ratemohamedosman370
The Definition of the (BOP)
The (BOP) structure
The Surplus and Deficit of (BOP)
Purposes of Official Reserve
The nominal and real exchange rate
The exchange rate regimes
Dr Haluk F Gursel, Global Peace, Devaluation and IMF, July 2023..pdfHaluk Ferden Gursel
Devaluation can be used to treat the balance of payments only
if the supply and demand of the factors of production are elastic. In most
underdeveloped countries, since the import and export amounts are
predetermined by some external factors, the devaluation cannot provide its function,
instead, it results in price increases. One of the important effects of devaluation
is that increases in foreign currency debts in terms of domestic currency amount.
Even if the domestic market producers, who are indebted to foreign
exchange, are driven into bankruptcy due to their large payments arising
from this exchange rate differences, market prices close this gap in a long
term. So, this is in fact nothing more than a liquidity crunch over time. On the
other hand, the IMF says that 'the appropriate exchange rate is the
rate that will provide long-term net capital inflow'. The aim here is to reach
sustainable capital movements in the long run. The extent to which the IMF
will implement this view will only be seen as capital and credit flows
from international money markets to countries in need will be limited and then current account balances deteriorated.
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Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
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3. Team Members:
M. ILyas Ishaq 45
M. Salman 28
M. Basit 39
Ubaid ur Rehman 15
Adnan Sharif 17
4. Exchange Rate
Factors That Influence Exchange Rate
Types of Exchange Rat
Need of Exchange Rate
Impacts of Exchange Rate
Impacts on Exchange Rate
Advantages of Fixed E.R
Disadvantages Fixed of E.R
Advantages of Floating E.R
Disadvantages of Floating E.R
Conclusion
5. The price of any nation’s currency in terms of another currency.
6. The exchange rate is important, because the suppliers in Pakistan
will require to payment in $. To pay these supplies the business
need to convert or exchange (Rs. In $). The amount of Rs. For each
$ depends on Exchange rate.
7.
8.
9.
10.
11.
12. No need for international management of exchange rates
No need for frequent central bank intervention
No need for elaborate capital flow restrictions
Greater insulation from other countries’ economic problems
Higher volatility
Use of scarce resources to predict exchange rates
Tendency to worsen existing problems
13.
14. •The level of imports and exports depends on exchange rates as well as on income
and other factors.
•When events cause exchange rates to adjust, the levels of imports and exports will
change.
• Changes in exports and imports can in turn affect the level of real GDP and the price
level.
• Further, exchange rates themselves also adjust to changes in the economy.
15.
16. Due to currency:
Depreciation
Appreciation
Devaluation
Revaluation
17. Depreciation:
“Currency depreciation is a decrease in the level of a currency in a floating
exchange rate system due to market forces”.
Cause of depreciation:
Economic Fundamentals
Interest rate differentials
Political instability
Risk aversion among investors
How to Breakdown:
Expected interest rate differentials can trigger a bout of currency depreciation.
18. Appreciation:
“Appreciation is an increase in the value of one currency in terms of another”
How to Breakdown:
Currency traders have to take into account appreciation when making a trade,
since a long-term currency option contract might see its value decline if the
value of the underlying currency adjusts. Additionally, as a currency
appreciates it becomes more expensive to buy that country's exports. This can
cause a contraction in the economy, which can further impact the value of the
currency.
19. Devaluation:
“Devaluating a currency is decided by the government issuing the currency, and unlike
depreciation, is not the result of non-governmental activities”
Impacts of Devaluation:
One reason a country may devaluate its currency is to combat trade imbalances.
Devaluation causes a country's exports to become less expensive, making them
more competitive on the global market.
This in turn means that imports are more expensive, making domestic
consumers less likely to purchase them.
20. Revaluation:
In a fixed exchange rate regime, only a decision by a country's government (i.e.
central bank) can alter the official value of the currency. Contrast to
"devaluation".
Impact of Revaluation:
For example, suppose a government has set 10 units of its currency equal to one
U.S. dollar. To revalue, the government might change the rate to five units per
dollar. This would result in that currency is being twice as expensive to people
buying that currency with U.S. dollars as previously and the U.S. dollar costing
half as much to those buying it with foreign currency.
27. “In simple words, having a floating rate system gives you more flexibility to
respond to needs of the economy. In a recession, when unemployment is high
and growth in economy is slow, central bank can increase money supply, lower
interest rates and allow currency to depreciate in order to revive growth. In
case of a pegged currency, however, the central bank loses that kind of
freedom. A rigid system would have its advantages like anchoring inflation
expectations and lowered volatility in forex markets. The flexibility offered by
floating rate is more valuable in my opinion”.