Unexpected Exchange Research Articles

Asymmetry and non-linearity in exchange rate pass-through: Evidence from scanner data

Using retail scanner data from Kazakhstan, an emerging economy with significant and unexpected exchange rate fluctuations, we observe an incomplete yet substantial exchange rate pass-through (ERPT) into prices. Specifically, we note a 50% change occurring a year after the initial shock. The ERPT demonstrates asymmetry in response to exchange rate movements. Notably, the direction of this asymmetry is opposite for imported versus domestic products. Furthermore, our findings indicate that ERPT is non-linear; the price response is more pronounced when the exchange shock is small, aligning with the existence of menu costs. Understanding these asymmetric and non-linear price responses to exchange rate shocks may be crucial for formulating effective inflation targeting policies, especially in emerging economies prone to high inflation.

Quantum-Confined Tunable Ferromagnetism on the Surface of a Van der Waals Antiferromagnet NaCrTe2.

The surface of three-dimensional materials provides an ideal and versatile platform to explore quantum-confined physics. Here, we systematically investigate the electronic structure of Na-intercalated CrTe2, a van der Waals antiferromagnet, using angle-resolved photoemission spectroscopy and ab initio calculations. The measured band structure deviates from the calculation of bulk NaCrTe2 but agrees with that of ferromagnetic monolayer CrTe2. Consistently, we observe unexpected exchange splitting of the band dispersions, persisting well above the Néel temperature of bulk NaCrTe2. We argue that NaCrTe2 features a quantum-confined 2D ferromagnetic state in the topmost surface layer due to strong ferromagnetic correlation in the CrTe2 layer. Moreover, the exchange splitting and the critical temperature can be controlled by surface doping of alkali-metal atoms, suggesting the feasibility of tuning the surface ferromagnetism. Our work not only presents a simple platform for exploring tunable 2D ferromagnetism but also provides important insights into the quantum-confined low-dimensional magnetic states.

Do foreign exchange administration rules strengthen the currency value? Policy lessons from an emerging market

After the announcement of the US presidential election result on 8 November 2016, many ASEAN currencies became volatile relative to the US Dollar (USD). Despite being an emerging market, Malaysia took an unprecedented step. It implemented new rules in December 2016 to halt the decline of the Malaysian Ringgit (MYR). Under the new rules, exporters must convert 75 per cent of export proceeds from foreign currency to local currency with a licensed financial institution. Using the sample period from September 2015 to July 2018, this study examined the impact of the Supplementary Notice on Foreign Exchange Administration (FEA) rules on MYR. Our study revealed, first, that despite the initial uneasiness of Multinational Companies (MNCs), the FEA rules effectively strengthened the MYR against the USD and other major currencies; second, the rule mitigated the depreciation of FDI and crude oil price on MYR; third, the results were robust in terms of model specification and estimation. The policy suggestion is made that the export conversion rule should be applied to foreign firms in Malaysia and domestic oil exporters, as it would mitigate the depreciation impact of the increase in FDI and crude oil price. Malaysia's experience provides policy lessons for emerging economies to emulate when facing unexpected exchange rate volatility.

ВЛИЯНИЕ ОТРАСЛЕВОЙ НЕСОВЕРШЕННОЙ КОНКУРЕНЦИИ НА ПЕРЕДАЧУ ЭКОНОМИЧЕСКИХ ШОКОВ СО СТОРОНЫ СПРОСА В КОММЕРЧЕСКИХ ВЗАИМОДЕЙСТВИЯХ «ЗАТРАТЫ – ВЫПУСК»

The article considers the model of imperfect competition, which allows to reveal the impact of economic shocks on commercial companies interconnected by the flows of manufactured products according to the “input – output” model. A theoretical model of the relationship between two types of companies in two industries with hierarchical relationships has been developed. Theoretically and experimentally, the relationship between the price index, the number of companies in the industry and the demand function with the elasticity of demand, the number of companies’ products, the exchange rate of the domestic currency against foreign currency is presented. The impact of an economic shock in the form of a sharp and unexpected exchange rate of the domestic currency on the elasticity of demand, the number of companies in the industry, and the volume of output by companies is presented. Empirical results support the theoretical model.

Strain-tunable unconventional exchange-bias effect in epitaxial CaIrO3/LaMnO3 heterostructures

The interfacial coupling in epitaxially grown bilayers composed of paramagnetic CaIrO3 and ferromagnetic LaMnO3 bilayers has been shown to give rise to an unexpected exchange bias effect. Systematic magnetic measurements ascribe this effect to the existence of an interfacial spin-cluster-like state in the bilayers. Furthermore, by tuning the epitaxial strains in the bilayers with different growth sequences, a much stronger exchange bias effect is observed in the CaIrO3/LaMnO3 bilayer rather than the LaMnO3/CaIrO3 bilayer, revealing the indispensable role of epitaxial strains in engineering the interfacial coupling.

Origin and properties of an unexpected exchange bias of Ta/Ni80Fe20/Ir20Mn80/Ta heterostructure in ultrathin limit: Impact of the oblique deposition and Ta/Ni80Fe20 alloying

Ultrathin Si(100)/Ta/Ni80Fe20/Ir20Mn80/Ta heterostructure deposited by oblique incidence in a confocal magnetron sputtering exhibits an unexpected exchange bias effect, despite the rotation of the sample holder and absence of external magnetic field during the deposition. Its magnetic loops have anomalous shifts along the field axis, whose features are non-uniform and strongly dependent on the orientation of the applied magnetic field. Structural, magnetic and thermal properties of the heterostructure were investigated using x-ray scattering and magnetic measurements to highlight the role of interfaces between ultrathin films and the related magnetic effects on the setting of the exchange bias. We show that the shadowing effect due to the oblique incidence of the sputtering flux combined to the atomic diffusion at the Ta/Ni80Fe20 interface favors the emergence of a uniaxial anisotropy in the ferromagnetic layer formed by a Ni80Fe20 sublayer at the top and a NiFeTa alloy at the bottom. The later increases the uniaxial anisotropy constant of the ferromagnet, which was strong enough to impose a well-defined direction for the spontaneous magnetization and, consequently, set the unidirectional anisotropy during the Ir20Mn80 layer formation. The thermal processes can reversibly be applied up to 460 K and, for higher temperatures, there were the vanishing of the exchange bias at 600 K and a thickening of the NiFeTa alloy which led to a reduction in the saturation magnetization of the heterostructure. Therefore, our findings suggest that the role of the interfacial NiFeTa alloy is only revealed in the ultrathin dimension and is imperceptible in thicker samples.

Influence of polarity compensation on exchange bias field in LaMnO<sub>3</sub>/LaNiO<sub>3</sub> superlattices

Perovskite superlattices have received enormous attention in recent years, for they possess several new phases of quantum matter. In particular, an unexpected exchange bias effect in (111)-oriented superlattices composed of ferromagnetic LaMnO<sub>3</sub> and paramagnetic LaNiO<sub>3</sub> is observed, which has aroused broad interest. In this work, three kinds of LaMnO<sub>3</sub>/LaNiO<sub>3</sub> superlattices with (001), (110), and (111) out-of-plane orientation are fabricated by pulsed laser deposition, and also studied systemically. It is found that the superlattices are epitaxially grown on the SrTiO<sub>3</sub> substrates without strain relaxation. The superlattices have a monolayer terraced structure with a surface roughness below 0.1 nm. Electrical transport measurements reveal a Mott conducting behavior with strong localization of electrons in the superlattices. All the superlattices with different orientations exhibit exchange bias phenomenon. The field cooling and zero field cooling curves indicate that there are two different magnetic components in the superlattice in a low temperature range. Further analysis of the values of exchange field reveals that the exchange bias field is related to the orientation and polarity of the superlattices. Different superlattices form different charged planes stacked along out-of-plane orientation, leading to a polarity match/mismatch at the interface between the superlattices and substrates. The surface reconstructions that act as compensating for the polar mismatch influence the exchange bias field of the superlattices. It is observed that the intensities of the exchange field of the polar-matched superlattices are higher than those of the polar-mismatched superlattices at different temperatures. These results are helpful in further understanding the magnetoelectric transport properties in the perovskite superlattices.

Repercussions of exchange rate depreciation on the economy of Pakistan: Simulation analysis using macroeconometric model

Expansionary and contractionary effects of exchange rate shock in developing economies has been the subject of an extensive debate but the results are inconclusive. This study has been conducted to examine the repercussions of unexpected exchange rate depreciation in the Pakistan economy. Unlike the previous literature, this study utilizes a fairly large macroeconometric model constructed on the basis of Cowles Commission structural approach. The study explores that expansionary effect of exchange rate depreciation explained by the traditional theories of open economy macroeconomics persists only for one fiscal year but these theories don’t work in the long-run as contractionary phase starts in the subsequent years. Monetary and fiscal authorities are not neutral and contractionary policy is taken in response to depreciation which pushes the economy into recession. Stagflationary effects are clearly observed. However, improvement in foreign sector prolongs for a number of years and policy makers would have to face a trade-off between opposite response of output and current account balance. Hence, unexpected depreciation generates sharp cyclical fluctuations on demand which immediately transmit to supply side of the economy. In line with the views of “New Structuralists”, exchange rate depreciation may be considered as a source of shock rather than shock absorber in the case of Pakistan economy. Although this study is specifically estimated for the Pakistan economy, authors believe that their methodological contributions and results are of wider importance for policy makers in developing countries.

Magnetic characteristics of LaMnO3+δ thin films deposited by RF magnetron sputtering in an O2/Ar mixture gas

In this work, LaMnO3+δ thin films have been successfully fabricated by RF magnetron sputtering using different O2/Ar flux ratios. The crystal structures, morphologies, stoichiometry, surface chemical states and magnetic properties of films are thoroughly characterized by x-ray powder diffraction (XRD), Raman spectrometer, scanning electron microscopy (SEM), x-ray photoelectron spectroscopy (XPS) and superconducting quantum interference device (SQUID). The magnetic characteristics of LaMnO3+δ films are systematically studied with the transformation from Mn3+ to Mn4+, which is strongly controlled by the deposited O2/Ar flux ratios. We demonstrate that LaMnO3+δ films undergo an antiferromagnet, the coexistence of ferromagnetism and antiferromagnetism and a robust ferromagnetism ordering by the variation of Mn3+/Mn4+ ratios. The LMO film deposited in pure argon atmosphere shows negligible FM signal and an inconspicuous TC. With the increase of deposited O2/Ar flux ratios, the Curie temperature of LMO films increases from 100 K to 224 K and then decreases to 140 K and meanwhile the irreversibility temperature fluctuates between 24 K and 100 K. The appearance of cluster glass state and the unexpected exchange bias phenomenon where the film deposited at highest O2/Ar flux ratio has a HEB ∼ 115 Oe is observed. All these evolutions of magnetization characteristics are discussed in terms of the strength of ferromagnetic interactions and the degree of competition between ferromagnetic and antiferromagnetic interactions in LaMnO3+δ films. Our work serves as prerequisites for LaMnO3-based magnetic heterostructures grown by RF magnetron sputtering.

Exchange Bias in Magnetic Topological Insulator Superlattices.

Magnetic doping and proximity coupling can open a band gap in a topological insulator (TI) and give rise to dissipationless quantum conduction phenomena. Here, by combining these two approaches, we demonstrate a novel TI superlattice structure that is alternately doped with transition and rare earth elements. An unexpected exchange bias effect is unambiguously confirmed in the superlattice with a large exchange bias field using magneto-transport and magneto-optical techniques. Further, the Curie temperature of the Cr-doped layers in the superlattice is found to increase by 60 K compared to a Cr-doped single-layer film. This result is supported by density-functional-theory calculations, which indicate the presence of antiferromagnetic ordering in Dy:Bi2Te3 induced by proximity coupling to Cr:Sb2Te3 at the interface. This work provides a new pathway to realizing the quantum anomalous Hall effect at elevated temperatures and axion insulator state at zero magnetic field by interface engineering in TI heterostructures.

Exchange Bias Effect in Epitaxial LaMnO3+δ Film Induced by Electron Beam Irradiation

AbstractPhase separation in the perovskite manganites of R1‐xAxMnO3 (R = trivalent lanthanide cation and A = divalent alkaline‐earth cation) can induce novel phenomena associated with the interfacial interactions. Here, the occurrence of phase separation and unexpected exchange bias induced by electron beam irradiation (EBI) in the epitaxial LaMnO3+δ (LMO) thin films is reported. The transformation from Mn4+ ion to Mn3+ ion originating from the electron's reducibility, enhances the Mn3+–Mn3+ antiferromagnetic superexchange interaction, resulting in phase separation, namely, the coexistence of ferromagnetic matrix and antiferromagnetic clusters. The formation of the antiferromagnetic phase in the LMO film is closely related to the increase of the out‐of‐plane lattice constant and the decrease of Curie temperature after EBI. The unexpected exchange bias effect results from the interfacial interaction between the ferromagnetic matrix and antiferromagnetic clusters, triggered by EBI in LMO film. The discovery of exchange bias induced by EBI shed promising light on achieving the tunable exchange bias effect in spintronic devices for single‐phase films.

Full Water-Cycle Monitoring in an Urban Catchment Reveals Unexpected Water Transfers (Detroit MI, USA).

A goal in urban water management is to reduce the volume of stormwater runoff in urban systems and the effect of combined sewer overflows into receiving waters. Effective management of stormwater runoff in urban systems requires an accounting of various components of the urban water balance. To that end, precipitation, evapotranspiration, sewer flow, and groundwater in a 3.40-hectare sewershed in Detroit, Michigan were monitored to capture the response of the sewershed to stormwater flow prior to implementation of stormwater control measures. Monitoring results indicate that stormflow in sewers was not initiated unless rain depth was 3.6 mm or greater. Evapotranspiration removed more than 40 percent of the precipitation in the sewershed whereas pipe flow accounted for 19 to 85 percent of the losses. Flows within the sewer that could not be associated with direct precipitation indicate an unexpected exchange of water between the leaky sewer and the groundwater system, pathways through abandoned or failing residential infrastructure, or a combination of both. Groundwater data indicate that groundwater flows into the leaky combined sewer rather than out. This research demonstrates that urban hydrologic fluxes can modulate the local water cycle in complex ways which affect the efficiency of the wastewater system, effectiveness of stormwater management, and, ultimately, public health.

Reaction of Papaverine with Baran DiversinatesTM.

The reaction of papaverine with a series of Baran DiversinatesTM is reported. Although the yields were low, it was possible to synthesize a small biodiscovery library using this plant alkaloid as a scaffold for late-stage C–H functionalization. Ten papaverine analogues (2–11), including seven new compounds, were synthesized. An unexpected radical-induced exchange reaction is reported where the dimethoxybenzyl group of papaverine was replaced by an alkyl group. This side reaction enabled the synthesis of additional novel fragments based on the isoquinoline scaffold, which is present in numerous natural products. Possible reasons for the poor yields in the DiversinateTM reactions with this particular scaffold are discussed.

Modeling magnetic evolution and exchange hardening in disordered magnets: The example of Mn1−xFexRu2Sn Heusler alloys

We demonstrate how exchange hardening can arise in a chemically disordered solid solution from a first-principles statistical mechanics approach. A general mixed-basis chemical and magnetic cluster expansion has been developed, and applied to the ${\mathrm{Mn}}_{1\ensuremath{-}x}{\mathrm{Fe}}_{x}{\mathrm{Ru}}_{2}\mathrm{Sn}$ Heusler alloy system; single-phase solid solutions between antiferromagnetic ${\mathrm{MnRu}}_{2}\mathrm{Sn}$ and ferromagnetic ${\mathrm{FeRu}}_{2}\mathrm{Sn}$ with disorder on the Mn/Fe sublattice that exhibit unexpected exchange hardening. Monte Carlo simulations applied to the cluster expansion are able to reproduce the experimentally measured magnetic transition temperatures and the bulk magnetization as a function of composition. The magnetic ordering around a site is shown to be dependent not only on bulk composition, but also on the identity of the site and the local composition around that site. The simulations predict that local antiferromagnetic orderings form inside a bulk ferromagnetic region at intermediate compositions that drives the exchange hardening. Furthermore, the antiferromagnetic regions disorder at a lower temperature than the ferromagnetic regions, providing an atomistic explanation for the experimentally observed decrease in exchange hardening with increasing temperature. These effects occur on a length scale too small to be resolved with previously used characterization techniques.

The Cape of Good Homes: Exchange Rate Depreciations, Foreign Demand and House Prices

Emerging markets are characterized by frequent periods of large and unexpected exchange rate depreciations. These events create opportunities for foreign investors to purchase domestic assets at a discount, especially if these assets have sticky prices. We show this to be the case in the housing market in Cape Town, South Africa. Using property transaction data, we find that foreign non-residents buy more properties following large exchange rate depreciations—in the lower quartile of month-on-month changes. We find no evidence of a similar effect for other buyers, suggestive of strong exchange rate-related motives. Using these depreciations as demand shocks to foreign non-resident buyers, we find that this increased demand leads to an increase in house prices of 3.39%. We find that foreign non-resident buyers pay 10.42% more than other buyers for otherwise identical properties and that this tendency to pay a premium accounts for around 27% of the observed causal impact of foreign demand on house prices.

Interfacial spin-glass-like state and exchange bias in epitaxial iridate-manganite heterostructure

Interface engineering in transition metal oxide heterostructures not only gives rise to exotic physical phenomena, but also has potential applications in spintronics. In this study, we demonstrate the appearance of strong interfacial coupling in 5d paramagnetic SrIrO3 and 3d ferromagnetic La0.67Sr0.33MnO3 bilayers, which manifests itself in the dramatic enhancement of coercivity by about 70 times larger than that of the single La0.67Sr0.33MnO3 layer and the observation of an unexpected exchange bias effect up to 40 K. Systematic magnetic analysis further reveals the emergence of an interfacial spin glass state in this 5d-3d oxide bilayer. This interfacial-coupling-induced spin glass state is the underlying origin of the unconventional exchange bias effect rarely observed in paramagnetic/ferromagnetic heterostructures.

Correction: Unexpected arene ligand exchange results in the oxidation of an organoruthenium anticancer agent: the first X-ray structure of a protein-Ru(carbene) adduct.

Correction for 'Unexpected arene ligand exchange results in the oxidation of an organoruthenium anticancer agent: the first X-ray structure of a protein-Ru(carbene) adduct' by Matthew P. Sullivan et al., Chem. Commun., 2018, 54, 6120-6123.

Analisa Transaksi Spot, Forward dan Swap Sebagai Alat Pengendalian Risiko

Risk control is an important step and determines overall risk management. The known risks and their potential consequences must be managed appropriately, effectively, and accordingly company. Risk control is also necessary when foreign exchange transactions are due to currency fluctuations and foreign exchange differences. The exchange rate difference can be obtained from spot, forward and swap transactions we get from spot, forward and swap transactions. The purpose of this research is as follows: 1. To know the procedure of Spot, Forward and Swap foreign exchange transaction at X bank,2. To know the risk control in foreign currency transactions at X bank, 3. To know the analysis of spot, forward and swap transactions as risk control tools at X bank. The research method used in this research is Research Methods Quantitative Descriptive Analysis. With this method facilitate the author in analyzing data from the results described by the author.The results show: spot transactions, certainly will avoid the risk of exchange rate fluctuations because the bank will directly benefit from the spot transactions. And using forward and swap transactions must still be done because to avoid the risk of unexpected exchange rate fluctuations, although there are some larger transactions than forward and swap contracts but negotiations can be done together.
 
 Keywords: spot, forward, swap, risk control

The Relationship Between Exchange Rate Volatility And Banking Sector Development: Time-Series Evidence From Emerging Economies

A limited number of recent studies have tested the relationship between some of the macroeconomic indicators and banking sector development. Among them, there are only few single developing-country studies, which tried to examine the direct impact of exchange rate volatility on the banking sector with mixed results. This paper examines the relationship between exchange rate volatility and banking sector development in 16 emerging economies over the period of 1980-2011. In this study we employ Pessaran, et al. 2001 bounds testing approach to cointegratoin and developed the short-run and long-run models. Our findings indicate that banking sector development responds significantly to exchange rate volatility in the majority of emerging economies in which 9 out of 16 confirm the short-run effect and 10 out of 16 exhibit the long-run effect. A strongly negative link between exchange rate uncertainty and liquid liabilities is confirmed. We find that the short-run effect effects last into the long-run effect only in 7 emerging economies. Furthermore, assessing the real exchange rate changes in long run confirmed that appreciation impede the banking sector development and eventually financial market development in majority of emerging economies. Meanwhile, our estimated results show the evidence of the significant impact of real income on banking sector development in almost all countries, implying that higher economic growth leads to higher banking activities and more investment. Given several country-specific results, based on their different economic and financial structure, we suggest that it is very crucial to implement appropriate monetary policy for emerging economies to stabilize their economic growth through the banking sector development upon unexpected exchange rate shocks. Under any kind of uncertainty in a country's financial system, chances for enjoying a well-developed banking sector in emerging economies would fade. All negative effects of exchange rate volatility will reduce efficiency of financial market and long-term growth of economy. In order to achieve these economies' long-run economic growth goals, we suggest that, the banking sector development and eventually financial market development should be considered a long-term objective for all emerging economies. In this paper, possible rationales for contrary short-run and long-run effects are also discussed.

Effect of Contemporaneous Exchange Rate Changes on Value of Multinational Nonfinancial Companies Listed at Nairobi Securities Exchange

The study investigates the effect of contemporaneous exchange rate changes on value of multinational nonfinancial companies listed at Nairobi Securities Exchange for period 2001-2016. Unexpected exchange rate changes and lagged exchange rate movements were used as control variables. The study adopted a two staged methodology. The first stage involved the determination of the foreign exchange exposure. At this point the REER is determined as the weighted average of the seven major currencies used by Kenya. The unexpected foreign exchange changes were determined using the ARIMA and GARCH model. The second stage of analysis involves a panel model where different aspects of foreign exchange exposure are regressed on firm value. The results indicated that contemporaneous exchange rate changes have a negative significant influence on the value of nonfinancial companies listed at the Nairobi Securities Exchange. The results of the study were inconclusive on the effects of lagged changes in exchange rates on firm value. The findings of the study reveal that unexpected exchange rate changes have a significant negative influence on firm value.