On the Pass-Through of Exchange Rate Fluctuations to the Macroeconomy: Imports in Developing and Advanced Countries

CFA Digest ◽  
2015 ◽  
Vol 45 (5) ◽  
Author(s):  
Mathias Moersch
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Fluctuations ◽  
Pass Through

scholarly journals Asymmetric Exchange Rate Pass-Through in Southeast Asian Rice Trade

2021 ◽  
pp. 1-34
Author(s):  
Taylor Wiseman ◽  
Jeff Luckstead ◽  
Alvaro Durand-Morat
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
The Philippines ◽  
Distributed Lag ◽  
Asian Rice ◽  
Exchange Rate Fluctuations ◽  
Pass Through ◽  
Exchange Rate Pass Through ◽  
The Impact ◽  
Rice Trade

Abstract Asian countries consume approximately 90% of the world’s rice supply. Between 2007 and 2014, Thailand, Vietnam, and India accounted for 60% of the world’s exports of rice. A nonlinear autoregressive distributed lag (NARDL) econometric model is utilized to estimate the impact of exchange rate fluctuations on rice trade in Southeast Asia. Focusing on the largest importing countries and exporting country by volume, the analysis considers Malaysian, Indonesian, the Philippines, and Chinese rice imports from Thailand. Results show that importing countries’ state trading enterprises (STEs) generally do not follow profit-maximizing behavior in reacting to exchange rate volatility.

scholarly journals Management of Exchange Rate Risk in SMEs

2020 ◽  
Vol 3 (6) ◽  
pp. 35-49
Author(s):  
Imtiaz Badshah ◽  
Trond-Arne Borgersen
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Risk ◽  
Listed Firms ◽  
Exchange Rate Fluctuations ◽  
Rate Risk ◽  
Operational Hedging ◽  
The Exchange Rate ◽  
Pass Through ◽  
Exchange Rate Pass Through ◽  
Management Challenge

Exchange rate fluctuations represent a challenge for the internationalization of all firms, both big and small. This paper reflects on two aspects of the exchange rate challenge - (i) the exchange rate pass-through and (ii) hedging of exchange rate risk and how SMEs manage these two aspects of exchange rate risk. The exchange rate challenges that SMEs face might differ from the risks larger firms are exposed to, and their management of the risks might vary. In family-owned SMEs, longer planning horizons than listed firms might imply a weaker exchange rate pass-through, while smaller financial buffers might pull pass-through rules in the opposite direction for the same SMEs. When considering hedging, the paper argues for both operational hedging and external hedging to represent a management challenge for SMEs, pushing the exchange rate risk towards the forefront of the factors hampering internationalization among SMEs.

scholarly journals An Empirical Analysis of Exchange Rate Pass-Through to Prices in South Africa (2002-2016)

2018 ◽  
Vol 10 (5(J)) ◽  
pp. 187-194
Author(s):  
Harris Maduku ◽  
Irrshad Kaseeram
Keyword(s):  
South Africa ◽  
Exchange Rate ◽  
Inflation Targeting ◽  
Policy Makers ◽  
Monthly Data ◽  
Exchange Rate Fluctuations ◽  
Producer Prices ◽  
Pass Through ◽  
Exchange Rate Pass Through ◽  
Year 2000

South Africa is currently running inflation targeting monetary policy since the year 2000 solely to achieve price stability. However, the persistent depreciation of the rand is making keeping inflation within the stipulated band very cumbersome. The objective of this paper is to find the duration taken by price indices to respond to exchange rate fluctuations. A Recursive VAR was used to investigate exchange rate passthrough (ERPT) to tradable prices in South Africa. Using monthly data, we find producer prices contributing highly to inflation with an average of 22% of fluctuations passed to prices. Large and persistent ERPT, especially on import and producer prices accompanied by high wage demands and a depreciating currency, are worrying factors for South Africa. Policy makers are advised to consider targeting the exchange rate if inflation is to be kept under control

Fear of Free Floating or Forced Exchange Rate Fixing

2004 ◽  
pp. 112-122
Author(s):  
O. Osipova
Keyword(s):  
Exchange Rate ◽  
Financial Crisis ◽  
Exchange Rates ◽  
Inflation Targeting ◽  
Exchange Rate Policy ◽  
Float Exchange Rate ◽  
Floating Exchange Rate ◽  
Rate Policy ◽  
Exchange Rate Arrangements ◽  
Pass Through

After the financial crisis at the end of the 1990 s many countries rejected fixed exchange rate policy. However actually they failed to proceed to announced "independent float" exchange rate arrangement. This might be due to the "fear of floating" or an irreversible result of inflation targeting central bank policy. In the article advantages and drawbacks of fixed and floating exchange rate arrangements are systematized. Features of new returning to exchange rates stabilization and possible risks of such policy for Russia are considered. Special attention is paid to the issue of choice of a "target" currency composite which can minimize external inflation pass-through.

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