Open Access. Powered by Scholars. Published by Universities.®
Finance and Financial Management Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 4 of 4
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.
Cny & Usd: Foreign Exchange Rates, Kimberly D. Scott
Cny & Usd: Foreign Exchange Rates, Kimberly D. Scott
Kimberly D Scott
A forward rate is related to a spot rate that is set to take place in the future (Bekaert & Hodrick, 2012). Interestingly, one issue that can be challenging when performing transactions is not knowing what the rate will yield in the future versus at present. Due to market pressures or even policy decisions, either a devaluation or revaluation of domestic currency to foreign currencies can transpire.
Chinese Yuan And The American Dollar, Kimberly D. Scott
Chinese Yuan And The American Dollar, Kimberly D. Scott
Kimberly D Scott
The economic relationship between China and the United States has been a hit and miss discussion over the years. One question, in particular, has stimulated more than speculation, but empirical research of whether we know that China's currency is undervalued is certainly a trigger to perform further research.
Overview Of The Evolution Of China's Central Bank And Monetary Policy: Correlation To The European Union, Alida S. Skold
Overview Of The Evolution Of China's Central Bank And Monetary Policy: Correlation To The European Union, Alida S. Skold
Alida S. Skold
As an innovator in the financial system, China was the first to use paper currency. Eventually the form of currency was held responsible for devastating inflation and was abandoned during the Ming Dynasty. Going forward in time, uprisings and discontent have emphasized the importance of controlling inflation. The central bank is pivotal in issuing monetary policy to control inflation and to maintain financial stability as the government transforms itself from a planned economy to a mixed market economy. The transforming economy is moving toward a free market system through series of economic reforms. The correlation between China’s structure and the …