This type of model is showm to generate a “devaluation bias” which undermines the credibility of a fixed exchange rate. The effect of reputational factors, signaling considerations, and joining a ...

This paper introduces a theoretical framework for liquidity management under fixed exchange rate arrangement, derived from the price-specie flow mechanism of David Hume. The framework highlights that ...

is pegged at a fixed exchange rate to the U.S. dollar. The following are some of the main factors that can affect various currencies' appreciation and depreciation relative to one another.

Thursday's 1.30% devaluation ... of high interest rates and spending restraint as uncertainty is believed to have reached Brazil to stay for a while. Hence, the exchange rate will remain a ...

by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency. In contrast, depreciation is used for the unofficial decrease in the exchange rate in a ...

The unofficial exchange rate (commonly referred to as “blue ... to terms with reality and acknowledges there has been a devaluation due to the monetary expansion announced by the Government.