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Topic: Exchange rate regime

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	Evolution of renminbi exchange rate regime
		Therefore, the renminbi exchange rate was devalued repeatedly over a fairly long period of time after the start of the reform and opening-up policy to meet the needs of reform and economic growth.
		Although the official exchange rate was lowered by 33.3 per cent upon the integration, real devaluation of the currency was 6.7 per cent given the fact that 80 per cent of forex transactions then were done in the swap market.
		Speaking of the overall situation, the renminbi exchange rate, either on a bilateral or multilateral basis, was on a downward spiral before the rate integration.
	www.chinadaily.com.cn /english/doc/2004-10/11/content_381264.htm (1016 words)

	Exchange rate regime - Wikipedia, the free encyclopedia
		The exchange rate regime is the way a country manages its currency in respect to foreign currencies and the foreign exchange market.
		Floating rates are the most common exchange rate regime today.
		Crawling bands: the rate is allowed to fluctuate in a band around a central value, which is adjusted periodically.
	en.wikipedia.org /wiki/Exchange_rate_regime (258 words)

	Capítulos 59: On Exchange Rate Regimes
		An exchange rate regime is the sum-total of rules and regulations that govern intervention in the exchange market by monetary authorities and, consequently, influence the pattern of behavior of an exchange rate.
		The exchange rate regime a country chooses to apply is the result of both its economic goals and the demands it must cope with.
		Exchange rate rigidity, by definition, will hamper the economy’s ability to cope with any such shock on the basis of an adjustment in the nominal exchange rate.
	www.sela.org /public_html/AA2K/EN/cap/N59/rcapin59-5.htm (2969 words)

	Coping with Terms-of-Trade Shocks in Developing Countries - Federal Reserve Bank of New York
		Under a flexible exchange rate regime, by contrast, the value of the domestic currency is allowed to shift freely in response to supply and demand conditions in the foreign exchange market.
		The nominal exchange rate is the price of one country's currency in terms of the currency of another country—for example, the quantity of pesos required to purchase one dollar.
		Because the exchange rate is defined as units of domestic currency per unit of foreign currency, the depreciation appears as an increase in the chart.
	www.ny.frb.org /research/current_issues/ci9-11/ci9-11.html (4223 words)

	JS-774: "China’s Exchange Rate Regime and its Effects on the U.S. Economy" by John B. Taylor Under Secretary
		-to flexible exchange rates combined with clear price stability goals and a system for adjusting the policy instruments is one of the reasons we are seeing fewer crises and greater stability.
		We emphasize that the choice of an exchange rate regime is one where country ownership is particularly important.
		He also stated publicly, “the establishment of flexible exchange rates, of a flexible exchange rate regime, would benefit both our nations as well as our regional and global trading partners.” The Chinese reported that they intend to move to a market-based flexible exchange rate as they open the capital account.
	www.treas.gov /press/releases/js774.htm (2147 words)

	International Economics - Historial Exchange Rate Regime of Asian Countries
		The controlled, floating Effective Rate for the Ringgit was replaced, the external value of the Ringgit was determined on the basis of its relationship to a weighted basket of currencies of Malaysia's major trading partners.
		Rates for all other currencies were determined on the basis of the Ringgit-U.S. Dollar rate and the U.S. Dollar rates for those currencies in markets abroad.
		The exchange rate in the 3rd column is the Official Rate which set by the Central Bank of Malaysia.
	intl.econ.cuhk.edu.hk /exchange_rate_regime/index.php?cid=4 (1008 words)

	ExchangeRateRegimes
		Under a truly flexible exchange rate regime, a nation’s deficit or surplus is automatically corrected by a depreciation or appreciation of the nation’s currency without any government intervention or loss or gain of the nation's international reserves.
		Pegging or fixing the exchange rate at one level usually results in excess demand for or supply of foreign exchange (i.e., a deficit or surplus in the balance of payments) which can only be corrected by a change in other economic variables, e.g., output, incomes, and/or employment.
		Fixed exchange rates often are out of equilibrium with the real world, and tend to distort the pattern of trade, hinder the discovery of true comparative advantages, and obstruct the efficient allocation of resources globally.
	facweb.furman.edu /~dstanford/52/ExchangeRateRegimes.htm (1157 words)

	Exchange rate - Wikipedia, the free encyclopedia
		In finance, the exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other.
		For example an exchange rate of 120 Japanese yen (JPY, ¥) to the United States dollar (USD, $) means that JPY 120 is worth the same as USD 1.
		Exchange rates for such currencies are likely to change almost constantly as quoted on financial markets, mainly by banks, around the world.
	en.wikipedia.org /wiki/Exchange_rate (1303 words)

	Nicholas' Homepage
		Other variants on floating exchange rates include frequent devaluations or revaluations and a crawling peg, where the currency is allowed to depreciate periodically by a well-accepted amount or tied to an index (usually an inflation index).
		With floating exchange rates on the other hand, there would be no risks of exchange rate crises (for example speculation or other pressures, forcing the central bank to costly interventions to defend the exchange rate).
		If changes in exchange rate expectations are the major cause for disturbances, flexible rates tend to be the superior regime but this is only in case where no wage indexation exists, otherwise the effects on the economy are the same regardless of exchange rate regime.
	homepage.mac.com /nicholashjelmberg/hemsida/skrifter423_en.html (2614 words)

	People's Daily Online -- PBOC on reforming the RMB exchange rate regime
		Enterprises and individuals bought foreign exchange from and sold it to the bank according to regulations, inter-bank transaction was conducted in the foreign exchange market to form a market exchange rate.
		Pressing ahead with reform of the RMB exchange rate formation mechanism is the necessity for alleviating unbalanced foreign trade, expanding domestic demands as well as upgrading enterprises' international competitiveness, and raising the level of opening to the outside world.
		RMB exchange rate reform is required to stick to the principle of initiative, controllability and gradualness.
	english.people.com.cn /200507/22/eng20050722_197772.html (1202 words)

	JS-774: "China’s Exchange Rate Regime and its Effects on the U.S. Economy" by John B. Taylor Under Secretary
		-to flexible exchange rates combined with clear price stability goals and a system for adjusting the policy instruments is one of the reasons we are seeing fewer crises and greater stability.
		We emphasize that the choice of an exchange rate regime is one where country ownership is particularly important.
		He also stated publicly, “the establishment of flexible exchange rates, of a flexible exchange rate regime, would benefit both our nations as well as our regional and global trading partners.” The Chinese reported that they intend to move to a market-based flexible exchange rate as they open the capital account.
	www.ustreas.gov /press/releases/js774.htm (2147 words)

	Exchange Rate Regime, Speculation And Price Stability In Iraq
		Factors or indicators used to choose an exchange regime cannot be solely reduced to terms-of-trade shocks, vital as they are; others are just as important.
		Fluctuations and exchange policy reversals are detrimental to stable economic environment in general and to attracting foreign and expatriate Iraqi capital in particular.
		At that time, flexible regimes could be superior to fixed-rate ones, especially since a single-currency peg also exposes the economy to the wide fluctuations among major currencies (Mussa et al, 2000).
	www.mees.com /postedarticles/oped/a47n44d01.htm (2507 words)

	Finance & Development, June 2001 - Transition Countries' Choice of Exchange Rate Regime in the Run-Up to EMU ...
		Although these results are testimony to the fact that other policies matter as much as the exchange rate regime, the choice of exchange rate regime remains an issue because the countries' ultimate goal is to fix their currencies to the euro in an orderly and efficient way.
		The choice of exchange rate regime in the run-up to EMU should take into account the need to meet the Maastricht criterion for inflation, which, as previously noted, is linked to the inflation rate in the European Union.
		Countries' experiences with different exchange rate regimes convincingly show that no one regime is appropriate for all the accession countries in the run-up to EMU and that many considerations influence countries' decisions.
	www.imf.org /external/pubs/ft/fandd/2001/06/szapary.htm (2521 words)

	The Reform of the Renminbi Exchange Rate Regime (tdctrade.com)
		The successful re-introduction of flexibility in the exchange rate of the renminbi on 21 July 2005 is one of the rare examples of a smooth change.
		The reform of the exchange rate regime of the renminbi was well planned and executed, and the People's Bank of China (PBoC), under the guidance of the State Council, is to be congratulated.
		The new exchange rate regime has been described as "a managed floating exchange rate system", where the exchange rate is adjusted on the foundation of "market supply and demand with reference to a basket of currencies".
	www.tdctrade.com /econforum/hkma/hkma050801.htm (872 words)

	Al-Ahram Weekly \| Economy \| To float or not to float (Site not responding. Last check: 2007-10-09)
		The difficulty of choosing an exchange rate regime and the costs of a wrong decision were a focal point made by the speakers.
		Mohamed El-Erian, managing director of PIMCO and Mahmoud El-Gamal, professor of Islamic economics, presented a paper to the conference wherein they compared between the application of a fixed exchange rate which they term as a nominal anchor, and a flexible exchange rate wherein a target inflation rate is the focus, in five Arab economies.
		He said in his paper to the conference that such a regime "allows policy to be directed to limiting misalignments, which is something that cannot be claimed by either of the corners." He explained that fixed rates allow currencies to become overvalued or undervalued, while the floating rates lead to sharper misalignments.
	weekly.ahram.org.eg /2000/509/ec2.htm (796 words)

	Fixed exchange rate - Wikipedia, the free encyclopedia
		A fixed exchange rate, sometimes (less commonly) called a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.
		A currency that uses a fixed exchange rate is known as a fixed currency.
		For example, the Asian financial crisis was ameliorated by the fixed exchange rate of the Chinese renminbi, and the IMF and the World Bank now acknowledge that Malaysia's adoption of a peg to the US dollar in the aftermath of the same crisis was highly successful.
	en.wikipedia.org /wiki/Fixed_exchange_rate (603 words)

	Towards a New International Financial Architecture
		Under the floating rate regime, we have experienced problems of volatility and misalignment: exchange rates have sometimes shown large fluctuations; they have deviated, for a long period, at levels inconsistent with economic fundamentals; and large imbalances among the major countries have continued to exist.
		They are not just adversely affected by volatile fluctuations of exchange rates: it has become more apparent that an emerging economy might face risks of default, due to difficulty in rolling over foreign currency loans, or to a run by international investors, even if it adopts a fully flexible exchange rate regime.
		Of course, the most appropriate exchange rate regime might differ from country to country, due to differences in the size of a nation's economy, the composition of its trade partners, the composition of its major trade items, the degree of its capital account liberalization, the nation's past experience with inflation, and other factors.
	russia.shaps.hawaii.edu /economic/newfa.html (3192 words)

	[No title]
		Ultimately, the exchange rate regime is but one facet of a country's overall macroeconomic policy.
		Last but not least, exchange rate and external financial strategies should be determined consistently to optimise growth and development opportunities while minimising risks.
		Directors recalled that, at the 2004 biennial review of surveillance, they had underscored the need to assist countries that are contemplating a move toward greater exchange rate flexibility, and considered the staff paper a helpful contribution to this effort.
	www.lycos.com /info/exchange-rate--countries.html (639 words)

	Testimony: China's Exchange Rate Regime
		It is the overall current and capital-account positions that matter for judging the extent of exchange rate misalignment—not bilateral trade balances or components of the current and capital accounts.
		China is justifiably concerned that if it floated the exchange rate and opened its capital markets today, the weakness of the domestic financial system could generate large-scale capital flight and sharp currency depreciation in response to bad news.
		It is not useful to identify large-scale, prolonged, exchange market intervention in one direction, and behavior of the exchange rate inconsistent with underlying fundamentals, as implicit pointers of a "wrong" exchange rate and then do little when these pointers signal a problem.
	www.iie.com /publications/papers/paper.cfm?ResearchID=266 (2066 words)

	WHAT IS APPROPRIATE EXCHANGE RATE REGIME
		Thus, in terms of exchange rate regime, Asian countries today seem to have been polarized; that is, they either go for a flexible exchange rate regime or a fixed exchange rate regime.
		One exchange rate regime that could be adopted under this option is a truly fixed exchange rate regime, which is a non-market-driven exchange rate regime, whereby the central bank is committed to buy and sell foreign exchange to maintain a given exchange rate.
		One way of avoiding excessive exchange rate volatility and undervaluation and overvaluation of the currency, while at the same time maintaining monetary independence and promoting financial market integration, is for Asian countries to link their currencies to a basket of foreign currencies.
	www.mof.go.jp /singikai/gaitame/siryou/h120207c.htm (2543 words)

	Lat joins exchange rate regime
		Estonia and Lithuania’s currencies were fixed to the euro far longer before they were included in the exchange rate regime.
		The standard fluctuation band is plus or minus 15 percent around this central rate, but Latvian authorities have told the European Central Bank that, as a unilateral commitment, they would maintain the fluctuation band of plus or minus 1 percent.
		The three main Maastricht criteria require that the state budget deficit must not exceed 3 percent of GDP, that inflation must not be more than 1.5 percent higher than the average figure for the three EMU members with the lowest inflation and the national debt must not include 60 percent of GDP.
	www.baltictimes.com /news/articles/12617 (588 words)

	A Look at China's New Exchange Rate Regime (2005-23, 9/9/2005)
		I find that movements in China's trade-weighted exchange rate indexes over the long term are relatively insensitive to currency composition; moreover, when viewed over the previous four to five years, all three indexes exhibit appreciation against the dollar far exceeding the initial 2.1% renminbi revaluation.
		Although the Mexican peso was not formally pegged to the dollar, the variance of the peso-dollar exchange rate was small relative to the other countries in the broad index.
		As such, the movements in the currency index would not necessarily be representative of the desired path for the renminbi under China's new exchange rate regime, even if the country weights assigned to the index were appropriate.
	www.frbsf.org /publications/economics/letter/2005/el2005-23.html (1346 words)

	Which Exchange Rate Regime for Asia? (Site not responding. Last check: 2007-10-09)
		A number of alternative exchange rate regimes have been proposed but there has been little empirical assessment of the consequences of the alternatives for the individual Asian economies.
		In evaluating the performance of alternative exchange rate arrangements in Asia for output and inflation variability, this paper considers a number of shocks.
		Not surprisingly, given the empirical literature for industrial economies from the last two decades, we find that the appropriate exchange rate regime varies across countries depending on, amongst other things, the economic structure of each country as well as the nature of the shocks hitting each economy, and the target variables that policymakers care about.
	www.brookings.edu /views/papers/mckibbin/20040205.htm (375 words)

	Floating Exchange Rate
		A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that particular currency relative to other currencies.
		Thus, floating exchange rates change freely and are determined by trading in the forex market.
		This is in contrast to a "fixed exchange rate" regime.
	www.investopedia.com /terms/f/floatingexchangerate.asp (356 words)

	RGE - Exchange Rate Regimes for Emerging Markets
		Financial dollarization is influenced by the choice of exchange rate policies
		Countries that changed from pegged to floating FX regime had a decrease on their financial dollarization
		Exchange Rate Policy and Liability Dollarization: An Empirical Study
	www.rgemonitor.com /63 (598 words)

	BOPA Daily News Archive (Site not responding. Last check: 2007-10-09)
		However, Mlazie said it was important to realise that more positive effects of the new exchange rate system would take some time to be felt throughout the economy because economic agents had to restructure their operations to respond to changes in relative prices.
		The major challenge was for the private sector to take advantage of favourable exchange rate environment to produce goods and services either for export or for the local market, competing with imports.
		He said it was important to note that the overall inflation rate had since started a downward trend, as was expected, from 14.2 per cent in April 2006 to 13.5 per cent in May and further down to 12.5 per cent in June.
	www.gov.bw /cgi-bin/news.cgi?d=20060804&i=New_exchange_rate_regime_lucrative (654 words)

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