Until 2012, the Central Bank of Iran (CBI) used its policy rate to stabilise the rial's exchange rate and, given a persistent current-account surplus, had accumulated sizeable currency reserves. In 2012, however, international sanctions against Iran intensified and the value of the rial halved...

This paper describes in detail the methodology currently used by the European Central Bank (ECB) to determine the nominal and real effective exchange rate indices of the euro. Building on the work of Buldorini et al. (2002), it shows how the ECB's techniques for calculating effective exchange...

Using two decades of annual data, we explore the links between real exchange rates and employment, wages, and overtime activity in specific U.S. manufacturing industries. Across two-digit industry levels of aggregation, exchange rate movements do not have large effects on numbers of jobs or on...

This paper approaches the sensitivity to the external turbulences of the crude oil price influence on the exchanges rates from Romania. This country has a particular situation being an importer of the crude oil and an exporter of refined petroleum products. In the last decades, in Romania it was...

With a testable gravity-type bilateral trade model derived from an underlying demand and supply model, we explore the effect of exchange rate variation on bilateral trade in an exchange rate regime with a vehicle currency, which refers to the case where the bilateral trade is invoiced/settled by...

This paper estimates the cash flow and real effects of currency mismatches generated by foreign-priced operations of French manufacturers. The value of transactions invoiced in foreign currencies is twice as sensitive to exchange rates as the value of transactions invoiced in the domestic...

Until 2012, the Central Bank of Iran (CBI) used its policy rate to stabilise the rial's exchange rate and, given a persistent current-account surplus, had accumulated sizeable currency reserves. In 2012, however, international sanctions against Iran intensified and the value of the rial halved...

We develop a theoretical model of international trade pricing in which individual exporters and importers bargain over the transaction price and exposure to exchange rate fluctuations. We find that the choice of price and invoicing currency reflects the full market structure, including the...

The nominal effective exchange rate (EER) of a currency is an index of the tradeweighted average of its bilateral exchange rates vis-à-vis the currencies of selected trading partners, while the real EER is derived by adjusting the nominal index for relative prices or costs. The nominal EER...

Since the Great Financial Crisis, emerging market economies have been more active in FX markets. As rising dollar debt and increased exposure to global financing flows have affected the demand and supply of foreign currency, financial stability has become an increasingly important motive for...