Discover how trade surpluses and deficits impact a country's currency exchange rate through supply and demand fluctuations.

We offer a unifying empirical model of covered and uncovered currency premia, interest rates and spot and forward exchange rates, both in the cross section and time series of currencies. We find that ...

Under dominant-currency pricing—where many export prices are set in dollars—the real exchange rate allocates export windfalls between producers and consumers. When the real exchange rate is stable, ...

The Bank of Korea has decided to allow export companies to receive foreign currency loans not only for facility funds but also for working capital. On the 27th, the Bank of Korea announced that ...