Terms Of Currency Research Articles

Rethinking the China-U.S. Trade balance from 2001–2020 based on emergy perspective

In the year 2018, escalating trade imbalances between China and the United States led to a trade war over tariffs and trade policies that garnered global attention. While trade deficits are primarily reflected in currency terms, trade involves a broader exchange of different resources. Hence, this study employs Emergy Accounting approach (EMA), an environmental quality-oriented assessment method, to collect official statistical data from both countries and consider differences in statistical data weight. Utilizing the NEAD V2.0 database, this research calculates and discusses the total emergy flow, trade imbalances, and structures in China-U.S. trade from 2001 to 2020. Additionally, it computes and analyzes emergy indicators, delving into the dynamic changes in the emergy values of various categories of goods. The results indicate a gradual balance in the emergy trade deficit between China and the United States, with both countries benefiting from the trade. Specifically, China benefits from importing raw materials from the United States, while the U.S. gains from importing inexpensive embodied labor from China. Considering differences in data statistical calibers and applying the EMA contribute to a more accurate understanding of the trade situation and the correction or prevention of errors. The Emergy theory provides a new perspective for a comprehensive assessment of trade relationships. China and the United States have the potential to establish a fairer, more balanced, collaborative, and sustainable trade relationship, contributing to global sustainable development.

Contract Theory-Based Collection, Updating, and Packaging Combination Strategies in Data Trading

In the data transaction process, where a single supplier collects and sells data to heterogeneous data buyers, its transaction strategy relies on the data’s value. In this paper, we measure the value of data in terms of volume and currency and analyze the whole process from data collection and update management to sales. The data supplier determines the maximum amount of data to be collected based on the willingness to pay and the cost of collection and decides the optimal update frequency based on the update cost paid to improve the data utility. Because data sets can be replicated and split nearly costlessly, data suppliers maximize revenue by combining data sets of different sizes. In the information asymmetry scenario, contract theory is applied to obtain the optimal data collection quantity, update frequency, and packaging combination scheme to maximize the profit of data suppliers under data buyer incentive compatibility and individual rationality and compare them with the information symmetry scenario. The results show that data suppliers will only provide personalized data sets to some data buyers, and the needs of some buyers will not be met. Information asymmetry causes data suppliers to reduce the number of data collections and the actual purchases by data buyers, and data suppliers’ profits tend to decrease. The surprising conclusion is that data suppliers should set up more frequent update strategies in the information asymmetry case than in the information symmetry case to sustain the decrease in data utility caused by insufficient quantity. Funding: This work was supported by the National Natural Science Foundation of China [Grants 72071042 and 72201113]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/serv.2023.0018 .

Will Virtual Currency Replace Classic Money in The Future

Virtual currency is not an entirely new concept. As a special type of digital currency based on internet technology, virtual currencies are believed to have the potential to change the traditional monetary system. However, its applications lack the recognition of many countries. This study aims to explore whether virtual currencies can replace traditional currencies in order to provide theoretical support for the development and application of cryptocurrency. This article first reviews the characteristics of virtual currencies, and analyzes their comparison with traditional currencies in terms of value -formation mechanisms, levels of risk and the direction of currency circulation. Then, it discusses the impact of virtual currencies on monetary policy, including weakening the effectiveness of monetary policy and reducing the accuracy of currency indicators. Finally, measures and suggestions for regulating the issuance and development of virtual currencies are proposed. The study finally finds that virtual currency has both merits and demerits and that it may have some negative effect on classic money. Through in-depth analysis and research on virtual currencies, this article believes that virtual currencies have the potential to replace traditional currencies to a certain extent, but a comprehensive replacement is impossible.

Intangible Cultural Heritage Protection and Nigeria’s Heritage Legislation

This article focuses on the legal and technical challenges of protecting intangible cultural heritage in Nigeria. Over time, Nigeria and its population have focused heavily on the petroleum industry as the primary source of the country’s economic sustainability, ignoring other viable economic sectors such as heritage preservation, protection, and management for sustainable tourism. This is because the country’s heritage legislation has been severely eroded and rendered ineffectual in protecting Nigeria’s heritage resources, in particular its intangible cultural heritage. Various stakeholders have expressed concern about the need to maintain and protect cultural assets all around the world. This has thus led to the promulgation of laws governing their protection. These regulations, however, did not begin in Nigeria until the colonial period, when the necessity to acquire and conserve heritage objects became recognized. Therefore, this article uses an exploratory research design with key informant interview methodologies as a data-gathering instrument. As a result, it demonstrates that numerous intangible cultural heritage resources in Nigeria are negatively impacted by political and societal instability, the increasing demand for antiquities and artworks, and socioeconomic challenges, amongst other human-induced factors. The existing heritage law in Nigeria, Decree No. 77 of 1979, is insufficient in terms of currency, enforcement, and efficiency, rendering its provisions ineffective.

Electronic Currency in Terms of Modern Economic and Legal Challenges

Electronic Currency in Terms of Modern Economic and Legal Challenges

Regulation of Digital Currencies in Terms of Examining the Available Policies and Regulations and the Development of Models Adequate for Protecting the Users and Preventing Illegal Activities

Regulation of Digital Currencies in Terms of Examining the Available Policies and Regulations and the Development of Models Adequate for Protecting the Users and Preventing Illegal Activities

Digital currencies as an alternative investment

Purpose: The study intends to examine the movement of digital currency prices over time and compare it to the movement of financial indicators in various stock exchanges to determine whether or not modern digital currencies can represent a global alternative to investing in financial stock exchanges, given their low transaction costs and information confidentiality, which makes them more appealing to some investors. Hypotheses: The research is based on testing two basic hypotheses (1) There is no statistically significant relationship between the movement of digital currency prices and stock index fluctuations. (2) Digital currencies cannot be used as a substitute for stock market investing. Methodology: The statistical study was conducted from January 1, 2010, to July 15, 2022, using a sample of thirteen MENA region countries' indices, as well as three global indices represented by Nasdaq, Dow Jones, and American Standard & Poor's, to represent the fluctuations of these indices. The movements of financial stock exchanges, as well as the ten most active digital currencies in terms of transaction volume at the time of the research, were used as indicators. The STATA statistical program was also employed for correlation analyses. Results: Standard deviations of samples showed that traditional currency markets are more stable than virtual ones. Because of this, it's clear that financial stock exchange traders can't use digital currencies as an alternative investment.

The Effect of the Dollar, Euro, and Sterling Exchange on the Tourism Index in the Turkish Economy

The exchange rate expresses the value of the national currency in terms of foreign currency. While foreign currency is an important investment tool in the portfolio of all kinds of investors in our modern world, it is also one of the most important elements of international trade. In particular, the impact of exchange rates on the tourism sector cannot be ignored. The aim of this study is to examine the relationship between monthly data and BIST tourism index (XTRZM) for the period January 2011 – July 2022 and exchange rates (US Dollar exchange rate, Euro exchange rate and Sterling exchange rate) by using the time series process. Whether there is a relationship between the variables was analyzed by econometric analysis method. In the study, in which the Granger model was applied, it was determined that there was a causal relationship between all four variables. A bidirectional relationship was found only between dollar and sterling exchange rate changes. A unilateral causality relationship was found between all other variables. 

Financial and credit support of market-oriented management of transport engineering enterprises

Purpose. To determine the priorities of the financial and credit support of transport machine building taking into consideration the needs of the national economy, state of marketing environment, and requirements of corporate management. Methodology. The information basis of the study is represented by the statistic data formed according to the classification of economic activity types KVED-2010 in terms of section C “Processing industry”, divisions 29 “Production of motor vehicles, trailers, and semitrailers” and 30 “Production of other transport means”. The research methodology involves analysis of dynamics and structure of production volumes, net profit of the transport engineering enterprises, formalization of trends, evaluation of credit capacity of the industry, and marketing and financial diagnostics. Findings. Key trends in the development of the transport machine-building market within the period of 2012–2020 are generalized: reduction of total production volumes and identification of subindustries-drivers of its growth. Structural shifts in the national economy owing to the growing specific weight of the production of motor vehicles, trailers, semitrailers in terms of prevalence of other transport means (first of all, railway and air ones) are identified. The priorities of financial and credit support of the transport machine building are specified taking into account the needs of civil national economy (railway locomotives and rolling stock, motor vehicles, air- and spacecraft, accompanying facilities) and military economy (military vehicles). To evaluate the objects of credit support, it is proposed to use a concept of credit capacity of an enterprise as its ability of accumulating banking credits on its balances in terms of certain currencies, terms, designated purpose, interest rates etc. as well as their timely servicing and payment. Originality. The scientific and methodological foundations of determining the priorities of financial and credit programme of the transport engineering enterprises are substantiated in the context of market-oriented corporate management, whose advantages are as follows (compared with the current ones): highlighting the time lags of production crisis and after-crisis renovation in the context of industries; determining structural shifts in the field of transport machine building, and identifying the economic activity types being leaders or outsiders in the sphere of financial and credit support of the expanded reproduction on this industry; defining polarization of business entities, being different in their size, according to the financial state and solvency with the focus on competitive advantages or crisis. Practical value. Proposals as for restructuring the activities of the transport engineering enterprises are substantiated basing on marketing diagnostics of the state of their internal and external environment, threats and possibilities in terms of war time, Ukraine’s getting a status of the member for the EU accession, and post-war renovation of the economy. In the framework of market-oriented management of the transport engineering enterprises, certain tendencies in the financial and credit support of their complex innovative development are substantiated.

DEPOSIT OPERATIONS AS THE BASIS OF SUCCESSFUL BANKING: THEORETICAL ASPECT, REALITIES AND PROSPECTS OF DEVELOPMENT IN UKRAINE

The paper considers the peculiarities of Ukraine’s deposit market functioning in 2020–2023 under the influence of force majeure factors. The current state of the respective market was analysed in terms of types of deposits by duration, namely fixed and demand, by types of currencies in which funds are placed on deposits, by ranges of the size of the deposits themselves, etc. Approaches to the interpretation of the “deposit operation” concept were systematized. Having analysed the definitions it is possible to define a “deposit operation” as an operation involving the deposit institution’s attraction of funds (in national or foreign currency, in cash or non-cash form) or bank metals of depositors to deposit bank accounts under the terms of the concluded agreement and following the current legislation of Ukraine. A comprehensive analysis of the dynamics of the deposit portfolio of the banking system was carried out. The dynamics of deposits of individuals in the banking system of Ukraine were analysed. The dynamics of interest rates on deposit deposits in terms of subjects, currencies and duration are highlighted. The increase in deposit rates contributed to the recovery of the growth of fixed deposits of individuals which volume increased for the first time since the beginning of the war. The permission of the National Bank to buy foreign currency to open fixed currency deposits contributed to their growth in dollar equivalent. The peculiarities of the activity of the Deposit Guarantee Fund in Ukraine during the period of martial law were identified, and the impact on the level of public trust in banks was investigated. The obtained results of the conducted research made it possible to determine the main trends in the development of the deposit market of Ukraine and to outline proposals for improving the deposit policy of Ukrainian banks.

Multilateral exchange rates: A multivariate regression framework

Currencies must be priced in terms of a numéraire when they are included in a regression model. The numéraire can be either a single-currency numéraire or a multicurrency numéraire: a weighted basket of numéraire currencies. Pricing currencies in terms of a multicurrency numéraire results in a system of multilateral exchange rates. A no-arbitrage condition enforces the movements in the system of multilateral exchange rates associated with the numéraire currencies to be a singular system, where the covariance matrix is singular and its ordinary inverse does not exist. Singular systems pose a methodological challenge in a multivariate regression model. This paper provides a solution to overcome this methodological challenge by imposing implicit restrictions on both the explanatory variables and the regression coefficients. In addition, the generalized least squares estimator is modified by replacing the ordinary inverse with the generalized inverse. The proposed solution provides a consistent multivariate regression model to explain the observed heterogeneity in the relative currency market.

명목실효환율을 통한 국가 시계열 군집화

This paper proposes a clustering-based factor analysis method to analyze the relationship between countries based on their Nominal Effective Exchange Rates (NEER). As an exchange rate is a relative value of a currency in terms of another currency, exchange rates can show the relationship between two countries where the relevant currencies are used. Based on this insight, this paper identifies currency clusters based on the movement of the exchange rates between countries over time. In the experiment, 60 countries’ NEER data from 2002-07-01 to 2022-06-30 were analyzed using the proposed clustering-based factor analysis method. In the proposed method, the clustering was performed on both country and time axes simultaneously. The results show that there are 11 meaningful clusters on both country and time axes. The country clusters are characterized by continents or currency-related properties. The separation between time clusters are related to the large-scale financial events, such as the Global Financial Crisis and the COVID-19 pandemic.

조건부가치측정법(CVM)을 통한 스마트시티 조성사업의 경제적 가치 추정에 관한 연구

This study aimed to measure the work of the smart city creation project, which is currently being supplied mainly to the public, in terms of currency. This is because public-centered projects have public interest value in addition to the value according to the actual cash flow, so there is a need to convert it into monetary value and estimate it. Among them, this study measured the amount of money value actually felt by residents in the smart city creation project by limiting the budget group to the spatial scope of the small and medium-sized city smart city creation project currently being carried out by the Ministry of Land, Infrastructure and Transport. For analysis, the survey was conducted twice, and it was conducted based on the sampling allocation method by reflecting demographic characteristics. In addition, in order to derive various implications, a survey was conducted in three forms: cost allocation from currently paid taxes, additional tax expenditures, and donations. As a result of the analysis, it was possible to derive about 3.4 billion won for cost allocation from tax, 1.7 billion won for additional tax expenditure, and about 700 million won for donations. Through this, it was possible to confirm how effective the improvement of residents' expectations and quality of life for the small and medium-sized city smart city creation project is through actual costs, not simple satisfaction.

Indian Insurance Scenario vs Global Insurance

Abstract: India Insurance market stands at $131 Bn as of FY22. The Indian insurance industry grew at a CAGR of 17% over the last two decades and is expected to continue its commendable growth trajectory in the future years India is likely to become the sixth largest insurance market in the world over the next decade driven by regulatory push and rapid economic expansion. In its latest report, Swiss Re Institute expects the country's total insurance premiums to grow by an average of 14% n nominal local currency terms in the next 10 years. For the current year, Swiss Re expects India's life insurance industry to record a growth rate of 6.6% and a further rise to 7.1% in 2023.

Digital currency banking using block chain technology

Banks are now the almost sole source of confidence for internet commerce when it comes to processing electronic payments. With a peer-to-peer electronic currency, payments can be conducted online directly between parties without going via a banking organisation. While signatures do contribute in some ways, the main benefits are lost if a trustworthy third party is still required to prevent double spending. So in this project we can implement Bit Coin based banking system can be implemented leveraging the technologies of block chains to create hash functions. Bit coin is a crypto currency, which is not supported by the government or central bank of any nation. It can be traded for goods or services with vendors who the use of bit coins payment. These bit coins are the blocks of secure data. It takes a lot of CPU resources to securely verify each individual transaction as the data is passed from one person to another while also spending money on the transaction. The P2P network monitors and verifies the moving of bit coins between users. Bit coin is more secure than other currencies in terms of cryptographic implementation, and it is difficult to carry out fraudulent transactions. In a Bit coin transaction, the block chain will connect every user on the network, and each time a transaction is entered, the network will broadcast it to all other users after it has been validated. The network will also have a copy of every transaction. The network will group transaction data into blocks and broadcast them throughout the network rather than preserving any transactions in the block chain. Every block in this chain will link to the one before it, which is known as the genesis block. Peer-to-peer networks and a consensus mechanism are used in block chain systems, eliminating the potential of data alteration.

Currency attribution for bilateral exchange rates: A decomposition of the moments

A bilateral exchange rate is the price of a base currency in terms of a quote currency. In this situation, how do international investors decide the contributions of both the base currency and the quote currency to the mean, variance, skewness, and kurtosis of the movements in each bilateral exchange rate? For a group of currencies, each bilateral exchange rate can be decomposed into a difference between two multilateral exchange rates: a base-currency multilateral exchange rate minus a quote-currency multilateral exchange rate. In this paper, the decomposition of bilateral exchange rates is used to decompose the moments of the movements in bilateral exchange rates. The result is a quantitative methodology to perform currency attribution, where the mean, variance, skewness, and kurtosis of the movements in each bilateral exchange rate can be attributed to the base currency and the quote currency.

Міжнародні резерви: досвід України та Польщі

The article highlights the theoretical and practical foundations of management of international reserves of both Ukraine and Poland. The article characterizes the system of elements of management of international reserves of the National Bank of Ukraine, which include: goals and principles of management; organizational structure of management; risks of operations with international reserves; risk assessment. The stages of management of international reserves of the National Bank of Poland are allocated and characterized, the relevant structures are defined. It is noted that in the process of managing foreign exchange reserves in Poland, decisions are made and implemented directly by the central bank of the country, without the participation of external asset managing institutions. The investment process is based on guidelines approved by the Board of the National Bank of Poland, including a set of norms, regulations and procedures, in particular on the decision-making process, permissible asset classes, as well as rules for financial risk management, including the establishment of credit limits and criteria for selecting a contractor. The structure of international reserves of both the National Bank of Ukraine and the National Bank of Poland is analyzed in terms of currencies. The value of gold and the share of gold in the international reserves of the National Bank of Ukraine and the National Bank of Poland are evaluated in dynamics. On the basis of the carried out study, conclusions were drawn and concrete proposals were formulated for improving the process of managing international reserves, taking into account international experience, namely: to optimize the structure of international reserves by diversifying it and expanding the list of reserve currencies; to increase the share of monetary gold as a reliable asset; to expand the direction of investing international reserves, in particular, to consider the possibility of investing in securities of countries that demonstrate sustainable development of their economies.

Залучення боргових фінансових ресурсів на зовнішньому ринку: досвід України

The current macroeconomic and political situation in Ukraine is characterized by instability and impact of a number of adverse factors. In such circumstances, Ukraine's debt relations are focused on the increased need to attract financing. At the same time, because of the ongoing war, Ukraine's expenses are constantly and rapidly growing. The revenue side of the budget under such conditions is limited. Today it is impossible to adhere to the chosen strategic benchmark – reducing the share of the external public debt and loans in foreign currency. The article is aimed at studying the practical aspects of attracting financing by Ukraine in the foreign market with an emphasis on the problems accompanying this process. The article examines the main indicators of attracting financial resources in the foreign market, the structure of Ukraine's debt in terms of currencies, as well as an overview of the risks that accompany the current debt situation. The primary task of Ukraine's debt policy is to optimize the attraction of financial resources in the foreign market within the security corridors. Taking into account the experience of attracting financial resources both in the domestic and foreign loan capital markets will allow defining the existing problems and identifying the directions for optimizing the attraction of such financing in the current crisis. Despite the significant need for financing and limited opportunities to attract resources in the domestic market, it is proposed to limit the use of external sources. In the current period, it is proposed to focus on restructuring the existing debt and finding opportunities to attract soft lending programs. Further, in the postwar period, a clear and flexible debt policy should be formed with the definition of quantitative benchmarks for Ukraine's debt security. However, prospects for solving Ukraine's debt problems will appear only after the settlement of the political situation in the country.

Asymmetric effects of geopolitical risk on major currencies: Russia-Ukraine tensions

In a nonparametric quantile-on-quantile regression analysis, we study the asymmetric effects of the Russia-Ukraine geopolitical risk (GPR) on the seven major currencies in terms of the USD-denominated exchange rates. We find that GPR's impact on exchange rates is asymmetric, especially at low and high extremes, currency-specific, and depends on whether the country's legal system is predominantly based on common law or otherwise. Our findings signal the attractiveness of the Euro and the Swiss Franc currencies as a hedge for currency portfolios against GPR. The investment and policy implications of the findings are discussed.

IMPACT OF SINKING RUPEE ON INDIAS FOREIGN TRADE(THREATS TO EXCHANGE RATE FLUCTUATIONS)

This study investigates the impact of rupee-dollar variations on the Indian economy. The economic conditions brought about by the rupees decline against the dollar demonstrate that there has been a significant detrimental impact of this price fluctuation on several industries. Any countrys export competitiveness and the value of its local currencies in terms of other currencies have a complex relationship. If the exported goods rely heavily on imported resources, this relationship will become more complicated. The Indian rupee has lost value numerous times during the past year, reaching a high of 80.064 to the dollar in July 2022. The Indian economy, which already had a significant budget and current account imbalance, was negatively impacted by exchange rate pressure. The Indian government made numerous difficult decisions to follow it again on the path. This essay discusses several difficulties brought on by these fluctuations as well as actions taken by the government and central bank to make them effective.