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COVER
STORY
Exchange
Rate Structure in India
- - K Seethapathi and Arindam Banerjee
With
increasing cross border capital flows, the potential of the
global currencies being exposed to the exchange rate fluctuations
is on the rise. In such a scenario it becomes even more difficult
to decide the type of exchange rate that needs to be adopted
by a nation. This article provides a detailed commentary of
India's exchange rate policy over the last five decades and
what the need of the hour is.
© 2005 IUP. All Rights Reserved
COVER
STORY
Development
of Forex Market in India
- - Ganapati Mendali
The
foreign exchange market in India has come a long way since
it faced crisis during the 1990-91 period. Since then there
was no looking back. The Forex reserves have always been on
the rise, and the overall economy reflected a buyout growth.
On the export and import front, the country has done exceedingly
well and has been able to garner a competitive edge over several
developing nations. This article provides a detailed description
of these various facets of foreign exchange market in India.
© 2005 IUP. All Rights Reserved
FOREX
Dollar-rupee
Rate: Lessons For Corporate
- - Harkirat Singh
The
appreciation of the Rupee can be analyzed from different angles
by different class of people. In this particular article,
the author provides his views on the current scenario of rising
rupee vis-à-vis the US Dollar. According to him, the rising
rupee can provide several potential benefits to the country
and proper utilization of the foreign exchange reserves can
give the nation a competitive edge over other developing countries.
© 2005 IUP. All Rights Reserved
FOREX
Foreign
Trade Policy and Foreign Exchange Rate/Reserves Management
- - TNC Rajgopal
The
formulation of a country's trade policy has an enormous impact
on its foreign exchange reserve management. In this article,
the author provides a thorough understanding of how the foreign
exchange has passed various phases that were primarily driven
by the exports and imports of the nation. The author firmly
feels that managing exchange rates as well as foreign exchange
reserves calls for a formulation of sound foreign trade policy.
© 2005 IUP. All Rights Reserved
FOREX
Total
Rate of Return Swaps: Could They be Useful to Indian Banks?
- - Amandio FC da Silva and Amy Sonpal
With
increasing number of derivative product making its foray in
the banking industry, the total return swaps have gained special
prominence. These instruments can be used as excellent tool
for hedging. This article tries to understand the meaning
and valuation of total rate of return swaps and their applicability
to Indian banks. To add richness to the text, the authors
have used a simplified mathematical model that makes the understanding
complete.
© 2005 IUP. All Rights Reserved.
RISK
Hedging
Crude Price Risk in India
- - Dibyendu Dutta
In
the complex world of derivatives instruments, crude futures
are the latest entrants. These products though were in existent
in the world market for sometime had made its foray into the
Indian markets only few months back. This article provides
a detailed discussion on what crude futures is all about and
how these instruments can be used as a hedging instrument.
It further explains as to how to initiate the hedging process
of these hybrid instruments.
© 2005 IUP. All Rights Reserved
RISK
KMV
EDF Credit Measure: A Reliable Tool to Credit Risk Management
- - Nirali Kamdar
KMV
EDFTM can be considered to be one of the most successful credit
risk measurement models that have gained tremendous popularity
of late. In spite of its complex nature, this particular risk
measurement tool provides a simple and understandable way
of managing credit risk. Of late, this technique has been
used as a reliable qualitative measure to determine corporate
default probabilities worldwide. This article provides an
excellent understanding of the model with numerical illustration
wherever required.
© 2005 IUP. All Rights Reserved.
TREASURY
Relevance
of Basel II Norms: An Indian Perspective
- - S Venkata Seshaiah, Ravinder Arora,
Rohit Kharbanda
One
of the most discussed and debated issues pertaining to the
banking sector in the past few years has been the Basel II
norms. India too has not been far left behind in moving towards
implementing the same. This article draws a clear picture
about the guidelines set by the Basel II norms and also the
possible implication on the Indian banks. The article tries
to focus on the relevance of the norms in the context of consolidation
in the Indian banking sector.
© 2005 IUP. All Rights Reserved
SPEECH
WTO
After Ten Years: Global Problems and Multilateral Solutions
- - DG Supachai Panitchpakdi
©
2005 World Trade Organization (www.wto.org).
BOOK
REVIEW
Exchange
Rates Under the East Asian Dollar Standard
- - Ronald I McKinnon
In
the absence of a unified currency, the East Asian economies
face a constant threat of being exposed to the continuous
fluctuations in the exchange rates. In his comprehensive and
precise analysis of the benefits and risks of an East Asian
dollar standard, Ronald I McKinnon opines that it is the conventional
view that favors flexible exchange rates on weaker economies.
Further, the author substantiates his view with the help of
a conceptual framework, to show where the conventional wisdom
on exchange rates has gone wrong.
© 2005 Massachusetts Institute of Technology. All Rights Reserved.
IUP holds the copyright for the review.
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