Tag Archives: exchange rates

Key finance concepts: exchange rates

Exchange rates are among the most important macrofinancial prices, influencing many aspects of an economy. This post introduces exchange rates and their importance for macroeconomic adjustment * What is an exchange rate? An exchange rate is a ratio, the price of one currency relative to another. All prices are ratios, but normally they’re expressed in… Continue Reading

The IMF includes the RMB in the SDR basket

On 30 November 2015 the IMF voted to include the RMB (the Chinese “people’s currency” denominated in yuan) in the basket of currencies it uses to calculate the value of the Special Drawing Rights, from October 2016. This is largely symbolic but should encourage further international financial reform in China. * What does it actually… Continue Reading

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