Open Access. Powered by Scholars. Published by Universities.®
Finance and Financial Management Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Finance and Financial Management
Covered Interest Rate Parity: The Usd And Cny, Kimberly D. Scott
Covered Interest Rate Parity: The Usd And Cny, Kimberly D. Scott
Kimberly D Scott
One of many tests of international finance is a test termed Covered Interest Rate Parity (CIRP). This theorem posits that exchange rate forward premiums (discounts) are offset by the respective interest rate differential between two currencies (Bhargava, Dania, & Malhotra, 2011). To briefly describe another theorem of interest rate parity is the Uncovered Interest Rate Parity (UIRP). This theorem posits that a return on an uncovered foreign currency deposit should be equal to the return on a similar domestic deposit despite the national market the foreign deposit is located.
Xinhua_Daxin_Global_Financial&Economic_Report, Guo Changlei Luc, 新华大鑫 新华大宗 新华社
Xinhua_Daxin_Global_Financial&Economic_Report, Guo Changlei Luc, 新华大鑫 新华大宗 新华社
Luc Changlei Guo
文章是新华社新华大鑫（新华大宗036号综合会员单位）全球金融研究报告。This article is written by the Global Financial and Economic Research Center which is sponsored by Xinhua Daxin of Xinhua New Agency. Xinhua Daxin is the No.36 member of Xinhua Bulk Commodity Exchange Center.