Learn how floating exchange rates work, driven by forex market supply and demand, and compare with fixed rates to grasp their impact on global economies.

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

How often are exchange rates updated? Tracking exchange rates is a good idea for anyone who regularly sends money transfers. When you convert money from one currency to another, the bank or specialist ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation This paper addresses a key puzzle in international finance: whether exchange rates follow a random walk or exhibit ...

As we all are aware Costa Rica’s rainforests and beaches draw countless visitors each year, but the strengthening colón now raises costs for dollar-paying tourists. Recently, the dollar exchange rate ...