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Kimberly D Scott

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Full-Text Articles in Business

Chinese Approach To Exchange Rates And Impact On Trade, Kimberly D. Scott Nov 2015

Chinese Approach To Exchange Rates And Impact On Trade, Kimberly D. Scott

Kimberly D Scott

The United States and China have embarked on considerable deliberation in the United States trade and the value of the Chinese currency among academics and politicians alike. Over the years, research on the two topics has consistently addressed the subject by investigating the equilibrium real exchange rate between the yuan (CNY) and the dollar (USD), with results exposing the undervaluation in the yuan since the 1990’s.


Cny & Usd: Foreign Exchange Rates, Kimberly D. Scott Nov 2015

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.