Spot Exchange Rate
by Thi Cam Tu Le
1. Speculation
1.1. Contributed to the emerging market cries
1.2. Hot money flows into and out of currencies, securities, property and commodities
2. Parity Condition
2.1. Official monetary reserse
2.2. Relative inflation rate
2.2.1. Purchasing power parity
2.3. Relative interest rate
2.3.1. Fisher Effect
2.3.2. International Fisher Effect
2.3.2.1. Foreign exchange risk
2.3.2.2. Default risk
2.3.2.3. Sovereign risk
2.3.3. interest rate parity (IRP)