All Questions
Tagged with central-banking exchange-rates
5 questions
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Why people buy foreign bonds when foreign interest rate raises?
I'm reading Investopedia's How National Interest Rates Affect Currency Values and Exchange Rates to understand how interest rates affect exchange rates.
It says:
Generally, higher interest rates ...
- 153
0
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Why would foreign asset purchases by PBOC temper yuan appreciation?
Suppose the PBOC buys a bunch of dollar-denominated bonds, using its dollar reserves. All else equal, what effect should this have on the yuan-USD exchange rate? And why? It amounts to trading non-...
- 103
4
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How can the HKMA peg the Hong Kong dollar at 7.8 HKD/USD for so long?
A lot of pegged exchange rate systems don't stay pegged for so long (e.g. because the central bank run out of reserves to maintain their values)
So far I understand that the HKD is 100% backed by the ...
2
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2
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Why currency purchasing power is linked to confidence in central banks
From the New Statesman, http://www.newstatesman.com/politics/economy/2016/02/coming-storm,
"Ever since the collapse of the Bretton Woods system of pegged exchange rates in 1971, the sole guarantee ...
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Why did the Swiss National Bank abandon its currency peg so suddenly?
There are many theories about why the Swiss National Bank (SNB) abandoned its currency peg a few days ago.
My question is more specific: why did they make the change so sudden? Why not reduce the ...
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