time‚ the principal fact about official exchange-rate policy in Bangladesh has had to do with overseas workers’ remittances far exceeding any single sector of merchandise exports as a support for the balance of payments. A multiple exchange-rate system prevailed with a secondary market as an incentive for overseas workers to remit through official channels instead of at parallel or “hundi” market-rates‚ the spread between the parallel and official channels being exceptionally high for Bangladesh
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CRISES Paul Krugman‚ January 2010 As this is formally billed on this program as the Nobel lecture‚ I suppose that I’m expected to focus on the work for which I was honored with the prize. And yet … proud as I am of the work I and many others did on increasing-returns trade and economic geography‚ given what is happening in the world – and given what I’ve largely been working on these past dozen years – that work is not uppermost in my mind. Fortunately‚ there’s an out. The Nobel committee
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in British pounds was £3.7683. What would the exchange rate between the dollar and the pound be? What if the U.S. dollar price had been $42.00 per ounce? 4. Since 2009 the IMF’s exchange rate regime classification system uses a "de facto classification" methodology. Under this system‚ currencies that are predominantly market-driven are considered to be: A) soft pegs. B) hard pegs. C) floating arrangements. D) a residual agreement. 5. When categorizing investments for the financial account
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INTRODUCTION The foreign exchange market is a worldwide decentralized over-the-counter financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock‚ with the exception of weekends. The foreign exchange market determines the relative values of different currencies. (wiki.org) The exchange rate is the price of a unit of foreign currency in terms of the domestic currency
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The Balance of Payments‚ Exchange Rates‚ and Trade Deficits REVIEW QUESTIONS 1. Do all international financial transactions necessarily involve exchanging one nation’s distinct currency for another? Explain. Could a nation that neither imports goods and services nor exports goods and services still engage in international financial transactions? Answer: The answer is almost certainly a yes. Only in rare cases would you find barter exchanges (goods and services for other goods and services)
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common modern usage‚ it specifically implies an official lowering of the value of a country’s currency within a fixed exchange rate system‚ by which the monetary authority formally sets a new fixed rate with respect to a foreign currency. In contrast‚ (currency) depreciation is most often used for the unofficial decrease in the exchange rate in a floating exchange rate system. Historically‚ early currencies were typically coins stamped from gold or silver by an issuing authority which certified the weight
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Pakistan. About KSE KSE is hub of capital formation in Pakistan‚ established on September 18‚ 1947. KSE started with 5 companies with a paid up capital of Rs. 37 million. The first index was the 50 index and trading was done through open-out-cry system. In spite of political issues‚ social‚ financial and other problems‚ it played a key role in the economy of Pakistan. KSE 100-index showed a return of 40.19% and became the sixth best performer among the emerging markets in the calendar year 2007
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FIN340 304 Tutorial week 3 Questions 1. How can a central bank use direct intervention to change the value of a currency? Explain why a central bank may desire to smooth exchange rate movements of its currency.. 2. Should the governments of Asian countries allow their currencies to float freely? What would be the advantages of letting their currencies float freely? What would be the disadvantages? 3. What is the impact of a weak home currency on the home economy‚ other things
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Most countries develop an exchange rate system in order to stabilize their economy. The unidentified countries listed have pegged their currency to that of another country to promote economic growth. Fixed exchange rates allow importers and exporters to know exactly what kind of exchange rate they can expect for their transactions. This in turn helps to control inflation and temper interest rates‚ allowing an increase in trade. In addition‚ it’s important for a country’s exports to be greater than
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monetary system. Bimetallism meant that the value for currency is silver-gold should be used as a legal tender of currency. Bankers wanted the gold standard for financial interest and they feared inflation‚ farmers and laborers who were being hit hard by deflation
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