Explore the theory of uncovered interest rate parity (UIP), understand its formula, and discover how it links interest rates to currency exchange rate expectations.

Finding the best way to change money is an age-old problem for travelers, but the smartest methods for doing it have evolved dramatically in recent years. Currency exchange used to be as simple as ...

Discover how the nominal effective exchange rate (NEER) measures currency competitiveness globally, and learn how the NEER impacts forex markets and trade policy analysis.

Interest rates play a critical role in shaping the values of different currencies. Central banks worldwide utilize interest rates as a monetary policy tool to manage their economies, making it ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation Growing remittance flows to emerging and developing economies may lead to real exchange rate appreciation and weaken their ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation This paper estimates, for the first time, the exchange rate elasticity of bilateral trade in services, providing indirect ...