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Offline CProebsting

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Re: Homework
« Reply #15 on: June 21, 2009, 02:27:25 pm »
Find attached my reports about

Cape Verde
Cayman Islands
Central African Republic

Christian Pröbsting

Offline rolf.schmucker

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Re: Homework
« Reply #16 on: June 21, 2009, 03:43:11 pm »
Find my homework attached.
Currencies chosen: Chad (CFA franc), Chile (Chilean peso), China (Renminbi), Colombia (Colombian peso).
Kind regards
Rolf Schmucker

Offline Benjamin Guin

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Re: Homework
« Reply #17 on: June 21, 2009, 05:50:35 pm »
Hello!

Here is my homework! I provided an overview of the following countries:
Croatia
Cuba
Cyprus

Last week was really interesting. I hope to see you all again on Thursday.

So long!
Benjamin  :)

Offline CalleyBilgram

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Re: Homework
« Reply #18 on: June 21, 2009, 06:57:42 pm »
My three countires are:

Costa Rica
Czech Republic
Comoros

Thanks and see you Thursday!
Calley Bilgram

Offline malijung

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Re: Homework
« Reply #19 on: June 21, 2009, 08:40:36 pm »
Congo
Costa Rica
Croatia

Kind regards,
Malika Jung

Offline B.Tisch

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Re: Homework
« Reply #20 on: June 22, 2009, 03:19:55 pm »


Denmark

National currency: krone (pl.:kroner), abbreviation: DKK
History: The krone was introduced as a result of the Scandinavian Monetary Union, which lasted until World War I. The initial parties to the monetary union were the Scandinavian countries of Sweden and Denmark, with Norway joining two years later. This placed the krone on the gold standard at a rate of 2480 kroner = 1 kilogram fine gold. The Scandinavian Monetary Union came to end in 1914 when the gold standard was abandoned. The name of the common currency was "krone" in Denmark and Norway, and "krona” in Sweden (both names mean "crown" in English). After the dissolution of the monetary union, Denmark, Norway and Sweden all decided not to change the names of the now separate currencies. A referendum on the currency issue held in 2000 rejected the proposed adoption of the euro.
Is there a fixed or a floating exchange rate? Fixed ( due to ERM II)
Is it convertible? Yes
Is there a Currency Peg? The krone is pegged to the euro via the ERM II, the European Union's exchange rate mechanism. Before the introduction of the euro, the krone was linked to the German mark, the intention being to keep the krone stable.
The ERM is based on the concept of fixed currency exchange rate margins, but with exchange rates variable within those margins. This is also known as a semi-pegged system. For Denmark, those margins are kept fixed at +/- 2.25%. Hence, DKK is subject to the same fluctuations regarding other currencies as it is the Euro.
Are there forward markets, future markets or options available for this currency? Not directly. But through the Euro-peg, it is possible to hedge future cash flows in DKK via Euro options or forward contracts.
If so, where are they traded?
Is there a Black Market for the currency? No
Is there a managed float? Does the government intervene in the market by buying or selling currency/through setting restrictions? Is there a currency board?
Yes, government intervenes. The purpose of the foreign-exchange reserve is primarily to support the fixed-exchange-rate policy. In the short term Danmarks Nationalbank can stabilise the krone by buying and selling foreign currency in the market. When Danmarks Nationalbank sells foreign currency (and buys kroner), the krone will tend to strengthen. When Danmarks Nationalbank buys foreign currency (and sells kroner), the krone will tend to weaken. In addition, Danmarks Nationalbank can influence the krone rate by adjusting its monetary-policy interest rates. When the foreign-exchange market is calm, Danmarks Nationalbank usually adjusts its interest rates in step with the adjustments of the monetary-policy interest rates of the European Central Bank. In a situation with upward or downward pressure on the krone or a sustained inflow or outflow of foreign currency, Danmarks Nationalbank unilaterally changes its interest rates in order to stabilise the krone.

Djibouti

National currency: Djiboutian Franc, abbreviation: DJF
History: In 1949, an independent Djiboutian franc came in to being when the local currency was pegged to the US dollar at a rate of 214.392 francs = 1 dollar. This was the value which the French franc had had under the Bretton Woods system until a few months before. Consequently, the Djiboutian economy was not affected by the further devaluations of the French franc. In 1952, the Public Treasury took over the production of paper money. The change of name to "French Afars and Issas" in 1967 was reflected on both the coins and notes. In 1971 and 1973, the franc was revalued against the US dollar, first to a rate of 197.466 to the dollar, then 177.721, a rate which has been maintained ever since. A further change in coin and banknote design followed independence in 1977.
Is there a fixed or a floating exchange rate? Fixed rate of DJF 177.721 per US dollar, thus floating to the same extend as the Dollar towards other currencies.
Is it convertible? Yes, no restrictions placed
Is there a Currency Peg? Yes, pegged to the US_Dollar since 1973
Are there forward markets, future markets or options available for this currency? No
If so, where are they traded?
Is there a Black Market for the currency? Yes, according to the fixed rate against the Dollar, effective exchange rates are biased to nominal exchange rates, thus setting up a Black market
Is there a managed float? Does the government intervene in the market by buying or selling currency/through setting restrictions? Is there a currency board? One of Djibouti's economic key factors is its strategic position as a free trade zone and its efforts to attract foreign direct investment (FDI). The resulting stable cash in-flow enabled Djibouti to maintain the fixed exchange rate. Djibouti has a currency board since 1949.

Dominican Republic

National currency: Dominican Peso, abbreviation: DOP
History: The Dominican Republic peso had been the currency since 1948 and was divided into 100 centavos, issued in bank note denominations similar to those of the United States. The Dominican peso, officially on par with the United States dollar for decades, underwent a slow process of devaluation on the black market from 1963 until the government enacted a series of official devaluations during the 1980s. In 1978 a Dominican law actually required that the peso be equal in value to the dollar, but as economic conditions worsened, authorities abandoned this policy. The most important change in Dominican exchange policy came in 1985 when the Jorge government, acting in accordance with the terms of an IMF stabilization program, floated the national currency in relation to the dollar. The DOP constantly devaluates ever since.
Is there a fixed or a floating exchange rate? Floating
Is it convertible?  ??
Is there a Currency Peg? No
Are there forward markets, future markets or options available for this currency? No
Is there a Black Market for the currency? Yes
Is there a managed float? Does the government intervene in the market by buying or selling currency/through setting restrictions? Is there a currency board?
Managed Floating since January 2005 with no predetermined path for the exchange rate. US-Dollar is used as a currency of reserve. Since the DOP is the only legal tender within the Dominican Republic, all incoming foreign exchange transfers are channelled into the commercial banks under BCRD (Banco Central de la República Dominicana) supervision, thus forming foreign exchange reserves.

« Last Edit: June 24, 2009, 02:55:05 pm by B.Tisch »

Offline J.Ritter

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East Caribbean, Egypt, El Salvador
« Reply #21 on: June 22, 2009, 05:00:12 pm »
1.   East Caribbean dollar (XCD)

The Eastern Caribbean dollar is the official currency of the eight political states in the Organization of Eastern Caribbean states (OECS). Six of these are independent states: Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines. Two-namely Anguilla and Montserrat, are British overseas territories.

The currency is issued by the Eastern Caribbean Central Bank located in Saint Kitts and Nevis. An agreement signed on July 5, 1983 at the Port-of-Spain established the Eastern Caribbean Central bank as successor to the Eastern Caribbean Currency Authority. The currency is the successor to the West Indies dollar that was used the West Indies Federation. The only member state of the OECS that does not use the Eastern Caribbean dollar as their native currency is the British Virgin Islands.

It has been pegged to the United States dollar at US$1 = EC$2.7 since 1976.

There is no black market.

2.   Egypt: Egyptian pound (EGP)

The Egyptian pound is the official currency for the Arab Republic of Egypt. The pound is divided into 100 piasters, or 1000 milliemes. The ISO code for the Egyptian pound is EGP, although LE is also frequently used as notation. Egyptian banknotes were issued for the first time in 1899.
The legal exchange rates were fixed by force of law for important foreign currencies which became acceptable in the settlement of internal transactions. Eventually this led to Egypt using a de facto gold standard between 1885 and 1914, with 1 Egyptian Pound = 7.4375 grams pure gold. At the outbreak of World War I, the Egyptian pound was pegged to the British pound at par.
This peg was maintained until 1962, when Egypt devalued slightly and switched to a peg to the U.S. dollar, at a rate of 1 Egyptian pound = 2.3 dollars. This peg was changed to 1 Egyptian pound = 2.55555 dollars in 1973 when the dollar was devalued. The Egyptian pound was itself devalued in 1978 to a peg of 1 Egyptian pound = 1.42857 dollars (1 dollar = 0.7 Egyptian pound).

The Egyptian pound floated in 1989. With the turn of the new millennium, Egypt introduced a managed float regime and successfully unified the Pound exchange rate vis-à-vis foreign currencies. The transition to the unified exchange rate regime was completed in December 2004. Shortly later, Egypt has notified the International Monetary Fund (IMF) that it has accepted the obligations of Article VIII, Section 2, 3, and 4 of the IMF Articles of Agreement, with effect from January 2, 2005. IMF members accepting the obligations of Article VIII undertake to refrain from imposing restrictions on the making of payments and transfers for current international transactions, or from engaging in discriminatory currency arrangements or multiple currency practices, except with IMF approval. By accepting the obligations of Article VIII, Egypt gives assurance to the international community that it will pursue economic policies that will not impose restrictions on the making of payments and transfers for current international transactions unnecessary, and will contribute to a multilateral payments system free of restrictions.

The currency is convertible.

There is a black market, primarily made use of in non-urban areas where banks are rare.


3.   El Salvador: El Salvadorian colon (SVC)


The Salvadorian colon (SVC) is divided into 100 centavos. While colones are still accepted, the primary currency of El Salvador is the U.S. Dollar (USD). The colon had been produced in 1, 2, 5, 10, 25, 50, 100 and 200 colones, but is no longer being printed in an effort to eventually make the dollar the only currency circulating in El Salvador. Preceding the colon was the peso, which was a decimalized currency, but the colon replaced it in 1892.

There is no black market.

There is no currency peg.



Take care,
Julian Ritter
« Last Edit: June 22, 2009, 05:52:36 pm by J.Ritter »

Offline Niclas Huck

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Re: Homework
« Reply #22 on: June 22, 2009, 07:29:07 pm »
Please find attached my homework for the following countries:
Equatorial Guinea, Eritrea, Estonia

Regards
Niclas Huck

Offline gustavkasselstrand

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Re: Homework
« Reply #23 on: June 22, 2009, 08:24:31 pm »
Please find my homework attached. The countries are the Fiji Islands, Ethiopia and The Gambia.


Best regards

Gustav Kasselstrand
« Last Edit: June 23, 2009, 01:01:44 am by gustavkasselstrand »

Offline kathrinheidl

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Re: Homework
« Reply #24 on: June 22, 2009, 08:49:46 pm »
Ethiopia, Falkland Islands and Faroer Islands

Best regards,

Kathrin Heidl

Offline sabine.pfaff

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Re: Homework
« Reply #25 on: June 22, 2009, 10:29:39 pm »
Ethiopia, Falkland Islands and Gambia.

Sorry for the overlap, I was already working on it.

Best regards

Sabine Pfaff

Offline Arrow

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Re: Homework
« Reply #26 on: June 23, 2009, 12:10:51 am »
Hello,

i focused on the Hong Kong dollar (HKD)

Best regards,

Michael Wagner

Offline Sandra Hokenmaier

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Re: Homework
« Reply #27 on: June 23, 2009, 11:43:33 am »
Foreign Exchange Markets – Foreign Currencies

1. Hungary

Currency: Hungarian Forint (HUF)

The Hungarian forint is the official currency of Hungary.
In Hungary, florentinus (later forint), a gold-based currency, was used from 1325 under Charles Robert and several other countries followed its example. The name of the forint ironically comes from Florence, where golden money was minted from 1252, called fiorino d'oro.
Between 1868 and 1892, the forint was the name used in Hungarian for the currency of the Austro-Hungarian Empire, known in German as the Austro-Hungarian gulden or Austrian florin.
The forint was reintroduced on August 1, 1946 after the currency pengõ experienced a period of great hyperinflation in the year before.
Until recently, the forint was comprised of 100 fillér, but circulation of the fillér ceased in 1999, having been rendered useless by inflation
The Hungarian National Bank is responsible for maintaining the quality of the notes in circulation, and is therefore licensed to issue new notes and withdraw old ones.
Hungary is one of the newer members of European Union, and it is estimated that they will adopt the Euro around 2010.

Characteristics:

▪ semi-fixed exchange rate against the Euro with the forint allowed to move 2.5% above and   
  below a central rate against the Euro
▪ became a fully convertible currency in 1995
▪ pegged to the euro in preparation for the conversion to euro
▪ there are forward markets, future markets and options for the Forint, e.g. traded on the interbank 
  forex market
▪ there is a black market for the HUF
▪ Hungarian forint is a managed float within a +/- 15per cent fluctuation band around a central rate to 
  the euro

2. India  

Currency: Indian Rupee (INR)

The currency of India is the Rupee, issued by Reserve Bank of India..
It is believed that India issued its first coin in the 6th centaury BC. The first historical account of the introduction of Indian Rupee dates back to the reign of Sher Shah Suri. Paper Money was introduced in the late 18th century with the emergence of private banks and semi government banks.
The 1861 Paper Currency Act provided Government of India the monopoly of issuing notes thus curbing the note issuance authority of Private and Presidency Banks.
The Government of India continued to issue currency note till the Reserve Bank of India (RBI) was
established on 1st April 1935.
Each banknote carries its amount written in 17 languages (English and Hindi on the front and 15 others on the back).

Characteristics:

▪ Officially, the Indian rupee has a market determined exchange rate. However, the RBI trades actively
  in the USD/INR currency market to impact effective exchange rates. Thus, the currency regime in
  place for the Indian rupee with respect to the US dollar is a de facto controlled exchange rate.
▪ India is increasingly moving towards de facto full convertibility
▪ no currency peg
▪ there are forward markets, future markets and options for the rupee, e.g. Indian rupee (INR) futures
  came into limelight on Dubai Gold and Commodities Exchange (DGCX).
▪ no black market

3. Iceland

Currency: Icelandic Krona (ISK)

The króna, is the official currency used in Iceland. Often denoted by ISK, the name króna means "crown" - a meaning analogous to the name of several other Nordic currencies. The Icelandic króna became a currency separate from the Scandinavian krona after the ending of the Scandinavian Monetary Union, and after gaining independence from Denmark in 1918. The Central Bank of Iceland (Sedlabanki Islands) has controlled circulation of the króna since 1961 . In 1980 , the Icelandic króna was revalued, with 100 old krónur being worth 1 new króna. Technically the króna is composed of 100 aurar, although in practice coins of less than 1 Króna  have not circulated for many years.
Because of the volatility between the euro and the króna, former Foreign Minister Valgerður Sverrisdóttir considered the idea that Iceland might become a eurozone member without joining the European Union. The 2008/2009 financial crisis prompted further calls for Iceland to join the eurozone.

Characteristics:

▪ floats according to supply and demand
▪ The Icelandic currency is a low-volume world currency, strongly managed by its central bank, with a
  high degree of volatility not only against the US and Canadian dollars, but also against the currencies
  of the other Nordic countries and the euro.
▪ convertible
▪ not pegged to any currency
▪ futures, forwards and options available
▪ no black market



Offline Michal Wilczek

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Re: Homework
« Reply #28 on: June 23, 2009, 06:33:39 pm »
Iran
Iraq
Israel

Find my solution attached
« Last Edit: June 23, 2009, 07:44:58 pm by Michal Wilczek »

Offline AndiStaudacher

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Re: Homework
« Reply #29 on: June 23, 2009, 06:48:08 pm »
Israel, Japan, Jordan
Please find my homework attached.

Kind regards,
Andrea Staudacher