Exchange Rate Sensitivity and the Net Foreign Asset Composition

2021 ◽  
Author(s):  
MALIN GARDBERG
Keyword(s):  
Exchange Rate ◽  
Rate Sensitivity ◽  
Foreign Asset ◽  
Net Foreign Asset

scholarly journals Financial Exchange Rates and International Currency Exposures

2010 ◽  
Vol 100 (1) ◽  
pp. 518-540 ◽  
Author(s):  
Philip R Lane ◽  
Jay C Shambaugh
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Foreign Currency ◽  
Explanatory Power ◽  
Financial Impact ◽  
Foreign Asset ◽  
International Currency ◽  
Large Panel ◽  
Net Foreign Asset

In order to gain a better empirical understanding of the international financial implications of currency movements, we construct a database of international currency exposures for a large panel of countries over 1990-2004. We show that trade-weighted exchange rate indices are insufficient to understand the financial impact of currency movements and that our currency measures have high explanatory power for the valuation term in net foreign asset dynamics. Exchange rate valuation shocks are sizable, not quickly reversed, and may entail substantial wealth redistributions. Further, we show that many developing countries have substantially reduced their negative foreign currency positions over the last decade. (F31, F32, G15)

scholarly journals The Analysis of Fundamental Variables and Macro Economic Variables in Predicting Financial Distress

2020 ◽  
Vol 9 (1) ◽  
pp. 81-90
Author(s):  
Siti Nur Kholisoh ◽  
Rina Dwiarti
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Financial Distress ◽  
Rate Sensitivity ◽  
Total Asset ◽  
Current Ratio ◽  
Return On Equity ◽  
Macroeconomic Variables ◽  
Turnover Ratio ◽  
Asset Turnover

Financial distress is a condition where the company is experiencing financial difficulties prior to bankruptcy. This study aims to identify and explain the influence of the fundamental variables and macroeconomic variables in predicting the probability of financial distress. Based on the eight variables used, current ratio, debt to assets ratio, return on equity and total asset turnover ratio is a fundamental variable. While the sensitivity of inflation, exchange rate sensitivity and interest rate sensitivity included in macroeconomic variables. The population in this study are all porperti and real estate company listed on the Stock Exchange in 2014-2018. The sample selection using purposive sampling technique, acquired 23 companies in the sample with the five companies in the category of financial distress and 18 companies in the category of non financial distress. The analytical method used is logistic regression and sensitivity analysis. The results showed that the variable current ratio, debt to assets ratio, total asset turnover ratio, inflation sesnitivity, exchange rate sensitivity and interest rate sensitivity did not significantly affect the probability of financial distress. While return on equity significantly negative influence on the company’s financial distress.

scholarly journals The Relationships between Exchange Rates and Stock Prices: Empirical Investigation from Johannesburg Stock Exchange

2019 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Gazi Salah Uddin ◽  
Khan Md. Raziuddin Taufique
Keyword(s):  
Exchange Rate ◽  
Market Efficiency ◽  
Stock Prices ◽  
Stock Exchange ◽  
Unit Root Test ◽  
Rate Sensitivity ◽  
Causality Test ◽  
Johannesburg Stock Exchange ◽  
Long Run ◽  
Adf Test

This study seeks evidence supporting the existence of market efficiency and exchange rate sensitivity on stock prices in the Johannesburg stock exchange (JSE). The sample includes the daily price indices of all securities listed on the JSE, and the exchange rate of the USD/Rand for the period since January 2000 to December 2004. The results from the unit root test, the ADF test and the causality test at the Granger sense provide evidence that the Johannesburg stock exchange (JSE) is informationally efficient. It has a long run comovement with exchange rate, and long run equilibrium or steady state. Hence, in JSE there is a strong possibility that foreign direct investors and forex market traders cannot influence and gain abnormal extra benefits by using exchange rate mechanism or by using exchange rate to forecast stock prices in the market. So, JSE is semi-strong form efficient. Through cointegration test, this paper gives more insight on the concept of market efficiency and the reliability of the results. These results are important to security analysts, investors, and security regulatory exchange bodies in policy making decision to improve the market conditions

scholarly journals Japan’s Foreign Assets and Liabilities

2021 ◽  
Vol 21 (26) ◽  
Author(s):  
Mariana Colacelli ◽  
Deepali Gautam ◽  
Cyril Rebillard
Keyword(s):  
Exchange Rate ◽  
Current Account ◽  
Current Account Balance ◽  
Panel Estimation ◽  
Exchange Rate Fluctuations ◽  
Exchange Rate Movements ◽  
Trade Channel ◽  
Net Foreign Asset ◽  
High Yields ◽  
Corporate Saving

The composition of Japan’s current account balance has changed over time, with an increasing income balance primarily reflecting a growing net foreign asset position and higher corporate saving. A comparison of Japan’s income balance with peer countries highlights: (i) relatively high yields on FDI assets, and (ii) very low FDI liabilities in Japan. Panel estimation is used to derive separate exchange rate elasticities for income credit and debit, with novel accounting that disentangles the mechanical from the economic response to exchange rate fluctuations. Despite the changing composition of Japan’s current account balance, its response to exchange rate movements still operates mostly through the traditional trade channel, with a small but reinforcing contribution from the income balance.

Determinants of Exchange Rate Sensitivity on the Nigerian Manufacturing Sector

Economy ◽  
2016 ◽  
Vol 3 (1) ◽  
pp. 40-50
Author(s):  
Ezeanyeji Clement I. ◽  
◽  
Onwuteaka Ifeoma. C. ◽  
Keyword(s):  
Exchange Rate ◽  
Manufacturing Sector ◽  
Rate Sensitivity
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