The Peso Problera in Testing the Efficiency of Forward Exchange Markets
, Journal of Monetary Economics (6:1980).
Thus we can conclude that the Tunisian forward exchange market
The banking community maintains that the forward exchange market
for NOK is so large and liquid that it is not difficult to find counterparties.
The 'Peso' Problem in Testing the Efficiency of Forward Exchange Markets
Recently, the People's Bank of China--China's central bank--announced that it will permit more domestic banks to participate in its forward exchange market
, following an application process that will take about six months.
This paper develops a stochastic macroeconomic model of a small economy with domestic money market, goods market, forward exchange market
, and spot exchange market being explicitly formulated.
The ESF acted in both the spot and forward exchange markets
to stabilize the dollar, but the Fund quickly found its resources insufficient for the task.
It is implicitly assumed that forward exchange markets
that can help traders eliminate this type of variations in profits either are not available (as it is true for the majority of currencies because most are not fully convertible, thereby impairing forward markets) or for some reason they are not utilized to fully hedge exchange risk present in trade transactions.
The growing importance of the forward exchange markets
, following the establishment of the flexible exchange rate system in 1973, triggered interest in the study of the relationship between the spot and forward rates of exchange.