Local currency

compares the response of PEPI or PEP with Inflation Targeting. Under PEP or PEPI, when the price of exports rises in international market, the currency appreciates. When the export price falls, PEP or PEPI automatically causes depreciation in the currency. This result is desirable and is confirmed by textbook theory. Textbook theory says a country 's currency should be allowed to appreciate when world markets for its export commodity are strong, and to depreciate when they are weak. In contrast,

as entities in multiple countries, there seems to be an increase in need for the translation of foreign currency in reporting currency so that financial statements can be prepared. Translation of foreign currency is when the amount is simply stated in certain terms without physically changing the currency (Wild & Wild, 2012). There is an issue with this however; the exchange rate for the currency of each nation is not set because it varies continuously within the foreign exchange market. There are

How to Buy Currency: Online or in-store? Abroad or at home? When you are planning for a holiday abroad, you also need to think about money. Not just the cost of your holiday but what the local currency is. Even though we live in the era of credit cards and wireless payments, you want to exchange some local currency to pay for essentials. Sometimes card payments don’t go through or they are indeed costlier than using local currency and you don’t want to find yourself unable to pay for food, drinks

rates: Price of one currency, in terms of another currency. Example: 1.23 SGD/USD This means that 1 USD is worth 1.23 SGD. This can also be written as 0.813 USD/SGD. Exchange rate regimes: Exchange rates can have a fixed rate regime, floating regime, or managed floating regime. Fixed Exchange rate regimes: In this, government agrees to buy and sell unlimited amount of the currency at a fixed price. Example: Thai bhat before 1998. • This effectively fixes the price of the currency. • You cannot

exchange rates for 12 different currencies where BNKR’s investments are dominated in, during the period of January 2010 till July 2015. The total number of daily logarithmic returns of each exchange rate is 1455. The daily logarithmic return is defined as: R_t=ln*((P_t-P_(t-1))/P_(t-1) ) Where P_t is the adjusted spot exchange rate at time t. The descriptive statistics summary of daily logarithmic returns is reported in Table 1. Therefore, assessing the exposure of currency risk was done by reviewing

Second: Social effects of inflation: inflation is an economic phenomenon reflects the effects directly on the society and these effects are represented in the following: 1- The first manifestation of inflation is the rise in prices of goods and services on a continuous progressive and this increase as a result of several reasons, which is: A. The state is working to increase government spending through the issuance of cash leads to an increase in the quantity of money is not offset by an increase

the government or central bank to maintain its currency against gold or another major currency such US dollar or the currency basket. In fixed exchange rate, the country’s central bank or other concerns will maintain exchange rate by buying and selling its own currency on foreign exchange. The article was focusing on successful parties and defeated parties due to Australian dollar fluctuations. The effect of depreciation and devaluation of currency is mixed on whole economy, as if exporters are in

Foreign exchange markets trade currencies around the world. Traders in large banks in North America, Europe, and Asia carry out the majority of the buying and selling of foreign exchange. A foreign exchange rate is the price of a country 's currency in terms of another currency. Exchange rates are determined in the foreign exchange market. Foreign exchange rates are figured in either U.S. dollars per unit of foreign currency or in units of foreign currency per U.S. dollar; they have both

on its default. The country has very poor economic situation with no reforms and recent devaluation of currency has caused the managers to think over the strategy that should be followed. The manager did perform some hedging calculation though however hedging is used where there is risk in the short term and where risk cannot be transferred. In this case where we can easily see that local currency is devaluing with great pace we should look for a long term strategy. Hedging strategy of GM should not

its twenty-year range, he never mentioned which countries currency he was comparing it to. When compared to the Irish punt, which the controller and the company have a vested interest in it is clear that over the last