#international finance

[basicsofeverything]

International Parity Conditions

International parity conditions are the economic theories that link exchange rates, price levels, and interest rates together.

Law of One Price

One assumption they are based on is the law of one price. It states that if an identical product or service can be sold in two different markets, where no restrictions exist on the sale and the transportation costs of moving the product between the markets are equal, the the product's price should be the same in both markets. If this applies, comparing prices only requires a conversion from one currency to another.

Purchasing Power Parity

Purchasing power parity (PPP) compares economic growth and standards of living in different countries with a common basket of goods approach. If the law of one price applied for all goods and services, the purchasing power parity could be acquired from just a singular set of prices. This is referred to as the absolute version of PPP theory. An example of this is the Big Mac Index.

On the other hand, relative PPP theory states that exchange rates and inflation rates (price levels) in two countries should equal out over time. Currencies that have a high inflation rate are expected to depreciate.

Exchange Rate Indices

Figuring out whether a nation's exchange rate is overvalued or undervalued in terms of PPP can be done by calculating exchange rate indices, such as the nominal effective exchange rate index (NEER) and the real effective exchange rate (REER). Both represent the average rate at which one nation's currency is valued in comparison with a basket of other currencies, weighted for the percentage of trade that each currency represents to that nation. However, while the NEER does not take inflation into account, the REER is an adjusted version of the NEER that takes into account the inflation rate of the home country relative to the inflation rate of its trading partners.

Exchange Rate Pass-Through

Exchange rate pass-through (ERPT) is a measure of how responsive international prices are to changes in exchange rates. An incomplete ERPT leads to a deviation of the REER from the PPP. The ERPT can be calculated by dividing the percentage price change in one currency by the percentage price change in the other currency.

Fisher Effect

The Fisher Effect describes the relationship between inflation and both real and nominal interest rates.

The International Fisher Effect states that differences in nominal interest rates between countries can be used to predict changes in exchange rates.

Interest Rate Parity

The theory of Interest Rate Parity (IRP) provides the linkage between the foreign exchange markets and the international money markets. It states that the difference in the national interest rates for securities of similar risk and maturity should be equal to, but opposite in sign to, the forward rate discount/premium for the foreign currency (excluding transaction costs).

The aforementioned forward rate premium/discount is calculated using the forward and spot rates:

If the theory of IRP does not hold, it paves the way for Covered Interest Arbitrage (CIA), wherein the arbitrager exploits the imbalance by investing in whichever currency offers the higher return, while covered by a forward contract. With Uncovered Interest Arbitrage (UIA), on the other hand, the investor remains uncovered, as they do not sell the higher yielding currency proceeds forward.

Forward Rate as an Unbiased Predictor

This theory states that the forward rate should be an unbiased predictor of the future spot exchange rate, given the assumption of risk neutrality and rational expectation. The forward rate will therefore, on average, overestimate and underestimate the actual future spot rate in equal frequency and degree.

#international finance #finance theories

[kp777]

#antonio guterres #cop27 #united nations #international finance #climate change #climate crisis

[adeelseo]

500 Yen to USD

#Currency Conversion #Exchange Rates #Japanese Yen #United States Dollar #Foreign Exchange #Currency Exchange #International Finance #Forex Trading #Currency Markets #Exchange Rate Fluctuations

[tenth-sentence]

Specialist moneylenders were always Jewish: a woman's name was as good as that of a man, licensed equally by the church to undertake the so-called sin of usury, offering large credit and international banking businesses.

"Normal Women: 900 Years of Making History" - Philippa Gregory

#book quote #normal women #philippa gregory #nonfiction #specialist #money lender #jewish #licensed #church #sin #usury #credit #banking #international finance

[gentlemans-code20]

#Institute - The World Bank

The World Bank Group (WBG) is a family of five international organizations that make leveraged loans to developing countries. It is the largest and best-known development bank in the world and an observer at the United Nations Development Group. The bank is headquartered in Washington, D.C., in the United States.

#gentlemans code #finance #business #international finance #world bank #world bank group #world trade #developing country #institution #united nations #washington dc

[emeriobanque]

JPMorgan Chase & Co (NYSE:JPM), a multinational financial services corporation headquartered in the United States, has partnered with six Indian banks to develop a blockchain-based platform for the settlement of interbank dollar transactions.

Aiming to compete with the likes of Singapore, Hong Kong, the Abu Dhabi Global Market (ADGM), and the International Financial Centre (IFC) in Dubai, the Indian government is taking steps to improve GIFT City, the Gujarat International Finance Tec-City.

Putting Your Eggs in Blockchain

Kaustubh Kulkarni, JPMorgan’s senior country officer for India and vice chairman for the Asia Pacific region, recently stated in an interview that the company would be starting a pilot project over the coming weeks and months to study banks’ experiences. In addition to JPMorgan’s own banking unit, he mentioned many other major private lenders present at GIFT City. These included HDFC Bank Ltd. (NS:HDBK), ICICI Bank Ltd. (NS:ICBK), Axis Bank (NS:AXIS) Ltd., Yes Bank Ltd. (NS:YESB), and IndusInd Bank Ltd. (NS:INBK).

Also, the banking behemoth intends to leverage blockchain technology to expedite monetary transactions. Settlement now takes some time to complete due to the procedures currently in use. With blockchain, however, these transactions may take mere seconds to finalize.

Kulkarni claims that JPMorgan wants to implement blockchain technology so that business can be conducted 24/7/365. These deals would be executed immediately. The financial institutions in GIFT City could also keep their own local time and opening hours.

The International Financial Services Centre Authority has also given their approval. On Monday, JPMorgan will launch a test project based on the Onyx blockchain. JPMorgan’s Onyx, a blockchain-based network for wholesale payment transactions, went live in the year 2020.

Industry experts and analysts are optimistic about the potential impact of this collaboration. They believe that the integration of blockchain technology will streamline processes, enhance efficiency, and reduce costs in the Indian banking sector. Additionally, it is expected to bolster the country’s position as a global fintech hub and attract further investments in the digital economy.

JPMorgan’s collaboration with Indian banks on blockchain technology highlights the growing importance of partnerships between global financial institutions and domestic players. As blockchain continues to gain traction worldwide, such collaborations serve as catalysts for innovation, driving the transformation of traditional banking systems into more agile, secure, and customer-centric platforms.

The future of the Indian banking sector looks promising with the incorporation of blockchain technology. As JPMorgan and Indian banks embark on this transformative journey, it is anticipated that other financial institutions will follow suit, further accelerating the adoption of blockchain in India and across the globe.

Originally published at https://www.emeriobanque.com.

#financial services #Abu Dhabi Global Market #International Finance #blockchain technology #JPMorgan

[amereid1960]

دور النظام المالي والنظام النقدي الدولي في تعزيز التمويل الدولي

دور النظام المالي والنظام النقدي الدولي في تعزيز التمويل الدولي دور النظام المالي والنظام النقدي الدولي في تعزيز التمويل الدولي الكاتب : تكواشت رانية الملخص: ملخص: تهدف هذه الدراسة الى تعرف على دور النظام المالي و النقدي الدولي في تعزير التمويل الدولي بالإضافة الى الالمام بمختلف الجوانب النظرية المتعلقة بكل من النظام المالي و النقدي الدولي و التمويل الدولي. توصلت هذه الدراسة الى أن النظام المالي…

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#international finance #international financial system #international monetary system #النظام المالي الدولي #النظام النقدي الدولي #التمويل الدولي

[alewaanewspaper1960]

دور النظام المالي والنظام النقدي الدولي في تعزيز التمويل الدولي

دور النظام المالي والنظام النقدي الدولي في تعزيز التمويل الدولي دور النظام المالي والنظام النقدي الدولي في تعزيز التمويل الدولي الكاتب : تكواشت رانية الملخص: ملخص: تهدف هذه الدراسة الى تعرف على دور النظام المالي و النقدي الدولي في تعزير التمويل الدولي بالإضافة الى الالمام بمختلف الجوانب النظرية المتعلقة بكل من النظام المالي و النقدي الدولي و التمويل الدولي. توصلت هذه الدراسة الى أن النظام المالي…

View On WordPress

#international finance #international financial system #international monetary system #النظام المالي الدولي #النظام النقدي الدولي #التمويل الدولي

[mesutyavas]

#Mesut Yavas #Business Finance #Finance #International Finance #Belgium

[csuitebitches]

Random reading recommendation 1 (find this under my pinned post, under “reading”)

https://www.imf.org/-/media/Files/Publications/SDN/2024/English/SDNEA2024001.ashx

International Monetary Fund - Gen-AI: Artificial Intelligence and the Future of Work PDF.

ABSTRACT: Artificial intelligence (AI) has the potential to reshape the global economy, especially in the realm of labor markets. Advanced economies will experience the benefits and pitfalls of AI sooner than emerging market and developing economies, largely because their employment structure is focused on cognitive- intensive roles. There are some consistent patterns concerning AI exposure: women and college-educated individuals are more exposed but also better poised to reap AI benefits, and older workers are potentially less able to adapt to the new technology. Labor income inequality may increase if the complementarity between AI and high-income workers is strong, and capital returns will increase wealth inequality. However, if productivity gains are sufficiently large, income levels could surge for most workers. In this evolving landscape, advanced economies and more developed emerging market economies need to focus on upgrading regulatory frameworks and supporting labor reallocation while safeguarding those adversely affected. Emerging market and developing economies should prioritize the development of digital infrastructure and digital skills.

#c suite #powerful woman #ceo aesthetic #personal growth #strong women #that girl #productivity #getting your life together #balance #Reading #books #adulting #reading recommendations #pdf #imf #international monetary fund #Finance

[ma-douce-souffrance]

just because I love studying something doesn't mean I have to be good at it

#international finance linkage

[basicsofeverything]

The Foreign Exchange Market

The Foreign Exchange Market is a global OTC market for the trading of currencies. It is the world's largest financial market. The main motivations behind participating in the market are seeking liquidity or seeking profit.

Forex Transactions

There are 3 different types of exchanges on the foreign exchange market:

spot transactions, with delivery and payment taking place "immediately" (on the second business day)

forward transactions, where the exchange rate is established at the time of the agreement, but delivery and payment happen in the future

swap transactions, where spots are traded against forwards, or forwards against other forwards with a different maturity

Cross Rates

Since many currency pairs are only inactively traded, their relationship is determined through their relationship to a widely traded third currency. Such an exchange rate is called a "cross rate". Cross rates can also be used for intermarket arbitrage.

Bid & Ask

There are "bid" and "ask" prices. Banks and traders get their profit from buying foreign currency at the bid price and selling it at a slightly higher ask price. From the perspective of a private investor, this is the other way around:

While spot rates are typically quoted on an outright basis, forward rates are usually quoted using points.

If the bid points of a forward quotation are less than the ask points, the base currency is at premium and the bid points are added to the spot exchange rate. On the other hand, if the bid points are greater than the ask points, the base currency is at discount and the bid points are subtracted from the spot exchange rate.

#international finance #currencies

[elbiotipo]

I think SpaceX, engineering wise, is doing awesome work, but not under Musk and the demands of the US space program which are completely nonsensical. Having a gigantic Starship as a lunar lander to be "ready" in like 3 years is completely insane given that all Starships have done so far is blow up. I understand it's a very "physical" way of testing things, after all, car manufacturers do crash cars to test them they don't just test them virtually, but it does not generate confidedence that thing can carry humans.

Neither is NASA doing well as a whole, which is sucked dry by the military-industrial complex so they can only launch one absurdly powerful useless rocket every five years.

Neither of them are doing space exploration any favors lately (don't even ask about Roscosmos). SpaceX has a great engineering idea for it, but it's under the corporate rule of Musk and the mandates of the US goverment. It's not going to end too well if it keeps like that.

China is doing alright though.

#no solamente creo que la base espacial china está bien sino que deberíamos tener más #cosas mias #I'm talking in an 'existing conditions' scenario of course #ideally we would have an international space program financed by all the bullshit we waste as a civilization in bombs and shit

[siriuslynephilim]

spending my whole life trying and trying and trying and trying to be good enough for people who don't give a fuck about me

#im so tired living seems pointless why am i doing this what is the reason #the firm i work at is going thru a merger so it's releasing all the interns except 2 #i went into her office and said that id like to stay here bc my dad said so bc i got in cause he was friends with the head #and she said ill think about it based on performance ive not decided yet #and this other guy he went in to tell her that cool he'll leave and she told him that she was hoping that he'd stay #he literally does nothing but play games on his phone he doesn't work at all #i have no idea what he has that i don't #but just. im stuck like this forever right never ever good enough for people i like or care about #not for parents they have a diff fav child not for ex gf not for bestie who has a boyfriend much better at loving her than me #not for that one guy who rejected me in interview bc i don't read the newspaper and didn't know the date of the finance act #im so fucking sick of this i never even wanted to this fuckinh course and obviously even my best isn't enough and ofc im not good enough #for anyone in this field and ill just struggle and struggle and struggle all my life just to earn some fucking money so i can live away #from my sociopathic parents #and the worst part is that i can't stop feeling like maybe it IS me yk maybe i am the problem maybe im not trying hard enough #but how else am i supposed to handle this i prioritize my studies and lose all my friends i prioritise my friends and fail in d #exams #and the trauma keeps on coming every fucking day bc sociopathic parents but i jsut push it down and say not rn i will cry at night anx then #never cry #i wish someone would just tell me that idk you're wrong you're not made for this you really do have some mental illness and you're really #trying your best and do something that's easy and that you love doing #oh god this is now a ventpost #mes

[americanivoryblog]

Election 2024 - The American Dream Is Being Lost; Even Among Our Own Citizens

I'm an independent. I've thought about my vote this year and I don't know if I will.

Trump:

-Good for economics/money (Whether you like him or not, he knows how money works)

-He's good for peace among nations and international affairs….he understands America's value/brand.

-Trump is Pro-Life. But, under the circumstances, if the woman is raped or the mother or the child is going to have complications; I do believe the woman has a choice.

But, I'm for legal immigration and I'm against not allowing honest human beings across the world to use America as a refuge away from danger; a safe haven. I'm also personally not dealing with a public American citizen divide & a governmental divide anymore.

I also disagree with the dissolution of Social Security. America's population is stagnant. The population isn't increasing enough equal to the money made by individuals to say people don't need it. And the population isn't decreasing enough to not afford it.

The States in America have enough tax money and profits from gambling alone to afford it. And If people need help with finances until they get themselves on their feet, they should get it. If they need a break from life while dealing with mental health issues, they should get financial help.

If people go through the process for financial help legally and honestly without abusing the system they should get it.

The American Dream ironically due to the direction of penalizing Capitalism and a decline in societal values, morals and selection of who should be rich and who doesn't deserve it is putting the American Dream at risk....which leads me to Biden.

Biden:

-I don't like the path he is setting for people, their futures, their families, education and peace - both within American Communities and Internationally.

-I'm completely against his new proposal of increasing the Capital Gains Tax. If people find a way to financial freedom. Allow it. The Capital Gain Tax is fine the way it is. He's determining who doesn't deserve the American Dream and if they get it, penalize them.

-I'm against his social-class warfare he's creating; in a way which determines who does deserve the American Dream vs. if they get the American Dream, penalize them.

-I'm against him not holding colleges accountable and liable for not helping ALL students of race, religion and politics to get a job in the field they studied.

-I'm against him not holding colleges accountable and allowing college's to allow students and people not of the campus or enrolled at the college to protest on matters that they are completely not only un-educated about; but matters that are encouraging division and enticing violence. This breaks the law of peaceful protests, especially if it is intentional to get or encourage a violent reaction. In the end, taking the luxury of our Freedoms for granted.

It should not be wrong to support your country with an American Flag or frowned upon. The Freedoms this country was founded on, has not been at risk of invasion in over 100 years, the closest anyone has come is Pearl Harbor and 9/11. 2 events on 2 days....there hasn't been years of risk of invasion like most countries in the world.

-He's terrible with foreign affairs.

-He refuses to take a strong position on anything. He can't take a stand and call what is yellow is yellow and what is purple is purple.

On both sides, there is too much allowance for generalizations among people, race, religion, populations, social classes, politics, governance and nations. For example, just because I'm white, doesn't mean I like every white person; if I'm treated poorly by someone, am I supposed to like them? So the thinking and reasoning of just because I'm white, I like every white person is a generalization. And a historical example, yet an extreme example - just because Germany was ran by Nazi's doesn't mean there were no German citizens who were against the Nazi's. There were Germans who wanted out; and if they went against the Nazi party they were murdered.

It's an extreme example, but my point is - You can't generalize people, race, religion, populations, social classes, politics, governance and nations.

(Note: What astonishes me with these college kids who claim to be Hamas supporters; if they showed support for Hamas in Hamas controlled territories/sanctions, but Hamas found out they're American. There's a high chance they'd be murdered or held hostage - for just being an American.

There is some dis-connect with these "Pro-Palestinian" supporters at these college campus' not understanding, that they are representing Hamas in these protests.

And I'm certain that these protestors don't recognize, that there are most likely Palestinians who do not want to be associated with Hamas.

This is the misunderstood pro-active movement being a vehicle for a generalization.)

Generalizations are dangerous; the entire point of disagreement is to come to a sound conclusion and decision. And this country, we have lacked that for decades. The constitution and amendments were based on disagreement to come to a sound conclusion. Laws in which we still live by, that were made based off the Mayflower Compact; the first governance order in America to allow peace is still supposed to be upheld.

There are different factions among people, race, religion, populations, social classes, politics, governance and nations.….and if people aren't educated to understand factions and operations to have disagreements with the goal of a sound conclusion….You will NEVER get a unified nation….It will always be division….even to its form into government as saying well they're Republican or they're Democrat…..no, you can't generalize like that….there are Far Right, Far Lefts, Right, Lefts and Moderates in each and believe it or not there are Rights, Lefts and Moderates who do agree on things and want to make sound decisions; but what does the media cover and promote?

The generalization of division simply made as Republican vs. Democrat.

It's absolutely ridiculous and completely uneducated.

America is the place of refuge, the melting pot. An idea and dream to not only be safe, but a land of opportunity. That is being lost. The American dream, even among our own nation and home grown citizens is being lost. The sense of ownership especially with land and homes; the ownership to be part of the American dream is disappearing. Especially when people can't afford homes and land anymore.

And the media, whether left, right or moderate outlets refuse to educate the people about anything and continually allow generalizations to encourage decision making.

It is all re-active reporting with an agenda "that appears" to encourage pro-active decision making for the future, thus making people feel they are making a difference while it is simply re-active reporting with an agenda to create the upcoming future.

People don't realize, that the media is simply pre-programmed. Do not think for one second that the media (whether left, right or moderate) hasn't planned the programming for future reporting ahead of time for that week or even, maybe that month. Literally in the guide of your cable television; you can see each outlet now labeling their shows as Episode 1, 2 and so on.

And all the while the journalism is absolutely terrible; simply just keywords to keep a viewer watching while reporting limited information for a controlled perspective without giving the audience truth among both sides to allow the viewer the free will to make their own decision and come to their own conclusion.

This is not journalism. This is not un-biased reporting. Honestly, it should be illegal.

And I truly believe, if the media took the initiative to recognize this. People would be empowered to attempt to be unified, rather than being empowered by differences.

Media outlets focusing on Trump's trial as a priority while ignoring real conversation American's should be having and being aware of true issues that effect the future without an un-biased opinion should be a priority. America is going to enter a fragile state.

There is no pro-active reporting without agendas. The Daily Show worked in the early 2000's to make jokes of political ridiculousness; it was popular and worked then....And tension in America is so tight, the jokes are out.

I just read an article on Jerry Seinfeld and within so many words, due to the current state - it is hard to be a comedian...people need comedy. But, tensions are too high and everything is offensive.

So, whether its the media or the politicians. You just can't generalize everything. Life is complicated, but you have to call the color what it is.

I'm not defending anyone who comes to your yard sees the dandelions there yellow, believes that your dandelions are purple while they're in your yard trying to convince you the dandelions are purple....when they're yellow.

I can't get behind that.

#america #politics #government #media #entertainment #news #politcal #political news #governance #united states of america #conservative #liberal #democrat #republican #democrats #republicans #mental health #financial freedom #finances #economy #international affairs #journalism #new article #news articles #race #religion #comedy

[gentlemans-code20]

#Luminaries - Hank Paulson

Henry "Hank" Merritt Paulson Jr. (born March 28, 1946) is an American banker and financier who served as the 74th United States Secretary of the Treasury from 2006 to 2009. Prior to his role in the Department of the Treasury, Paulson was the Chairman and Chief Executive Officer (CEO) of major investment bank Goldman Sachs.

#gentlemans code #luminaries #finance #international finance #economic crisis #congress #US treasury #goldman sachs