Foreign exchange

MARKET REGULATION: ROLE OF RBF AND EXCHANGE CONTROL TABLE OF CONTENT - Objectives - Introduction - Literature Review - What does the Reserve Bank do? Analysis and Interpretation: - Objectives of Overseeing the Financial System - What makes up Fiji’s Financial System? - The Reserve Bank’s approach to regulating and supervising the Financial System. - Exchange Control - Concluding Remarks - References OBJECTIVES The objective of this research paper is to: • Find out the role

Regulation of foreign investment in China Foreign investment in china has been adversely affected by the global economic and financial crisis since 2008. In the first 6 months of the year 2009, foreign investment in china dropped by 17.9%. There has been a notion that china does not well receive foreign investors compared to the past. Reports of abolishment of special treatment for foreign investors have been reported. However we all agree that regulation of foreign investment is important to ensure

current account surpluses and its huge accumulation of foreign exchange reserves. Although undervaluation of the yuan was a major factor causing the large imbalances in the past, the appreciation of the yuan over the past few years had brought the yuan-USD exchange rate to a level that was no longer undervalued. Exchange rate, the price of a nation’s currency in terms of another currency, indicates the value of a currency: a higher exchange rate is associated with a relatively lower value of its

currency price to begin with. The exchange-rate system is an important topic in international economic policy. Policymakers and journalists often seem to treat the choice of exchange-rate system as one of the most important economic policy choices that a national government makes, on a par with free international trade. Under most circumstances and for most countries, a system of freely floating exchange rates is likely to be a better choice than attempting to peg the exchange rate. Consequences regarding

INTRODUCTION 3 FIXED EXCHANGE RATE REGIME 3 Managed Float Regime 4 FLEXIBLE EXCHANGE RATE REGIME 4 REAL EFFECTIVE EXCHANGE RATE AND NOMINAL EFFECTIVE EXCHANGE RATE 5 CAPITAL CONTROLS IN DIFFERENT REGIMES 7 What is Capital Control? 7 IMPOSSIBLE TRINITY 10 REFERENCES : 12 INTRODUCTION There are three types of exchange rates. They are: 1) Fixed rate 2) Managed float 3) Floating rate FIXED EXCHANGE RATE REGIME Central bank of any country takes decision on which type of exchange rate to use in their

The financial crisis in Argentina during the late 1990s and early 2000s resulted in severe issues with foreign debt, inflation, unemployment, and political turmoil for the country. Argentina not only suffered a currency crisis, but also suffered a political crisis. Fallout from the economic collapse was so severe the Argentinean population resorted to civil unrest and protest, which in turn exacerbated Argentina’s problems at the turn of the century. While other issues related to this financial

Fixed or pegged exchange rates are exchange rates that are held constant or allowed to vary within a very narrow margin (Madura 2008, p.154). The Chinese government re-instituted its Yuan peg during the global financial crisis in July 2008 after de-pegging in July 2005. The current USD/CNY and EUR/CNY rates of 6.52 and 9.46 respectively have been criticised as being too low, especially by the U.S. In fixing the exchange rates, central bank trades domestic and foreign exchange reserves to adjust

China: To Float or Not To Float? International Finance Executive Summary On July 21, 2005, China revalued its decade-long quasi-fixed exchange rate of approximately 8.28 yuan per U.S. dollar by 2.1% to 8.11. Simultaneously, the People’s Bank of China announced that the daily trading band of 0.3% against the dollar would be maintained. Many analysts and economists believed that the real trade-weighted value of the renminbi was undervalued by up to 30% to 35%. Companies that produce in

Review of previous empirical literature: A core element in the economic literature is the center on expansion and the use of man-made, natural, and social capital. The fact that there are three different types of capital that can contribute to economic growth has led to a difference between weak and strong sustainability, as discussed by Pearce and Turner (1990), and Rennings and Wiggering (1997). Weak sustainability describes a situation where it is assumed that the total capital is maintained and

is named in honor of the Spanish explorer Vasco Nunez de Balboa. The Balboa replaced the Colombian peso in 1904 following the country’s independence. The Balboa has since been tied (pegged) to the US dollar, which is legal tender in Panama, at an exchange rate of 1:1. Balboa coins are also used interchangeably with the US coins, as the Balboa coins are subdivided into 100 cents that consist of the same metal, size and shape of the equivalent American coins. Interesting