What is the exchange rate?

What rate of exchange is today?

The rate of exchange is 145 yen to the dollar.

So, what will the New Year bring for exchange rates?

The conversion rate is 1,936.27 lire to the euro.

Clearly, such uncoordinated interventions are exacerbating currency market turmoil, with the ruble s value fluctuating by 5 and as much as 10 in a single day.

But it is not impossible as long as policymakers understand the critical role played by the exchange rate and the need to subordinate capital flows to the requirements of competitiveness.

For example, China needs a stronger exchange rate to help curb manic investment in its export sector, and thereby reduce the odds of a 1990 s style collapse.

After decades of exchange and price controls, the economy has enjoyed three years of open trade, free currency exchange and free prices.

Because it overshoots, the exchange rate fluctuates more than the price level.

BEIJING The exchange rate of the renminbi has once again become a target of the United States Congress.

Over the long run, globalization and economic convergence will resume, and emerging market and commodity currencies will have to strengthen. At the same time, the prospect of higher US inflation and massively higher US public debt levels must eventually weigh on the dollar, as does the still worrisome US trade deficit.

Over the long run, globalization and economic convergence will resume, and emerging market and commodity currencies will have to strengthen.

But the end of the fixed exchange rate regime for industrial countries did not end activist management of currencies.

When a shock hits the economy, it is initially absorbed by interest rates and the exchange rate.

But the emergence of powerful new currencies always provokes fresh attempts at the use of exchange rates for political purposes.

In fact, however, exchange rates will change and need to change in order to shrink the existing trade imbalances.

Though the exact details remain to be decided, such steps might include more exchange rate flexibility in China, and perhaps a promise from the US to show greater commitment to fiscal restraint.

More stable financial markets and a less volatile exchange rate relative to the euro will bring many advantages.

Nervous central bankers in many other emerging markets, including India, facing pressures from exporters hurt by rising exchange rates, are contemplating broader controls on capital inflows as well.

In fact, it would add another one the instability of the exchange rates among major reserve currencies.

The Dornbusch result is that, in this process, the exchange rate typically overshoots its long run value.

Venezuela will introduce a special exchange rate for its national currency the bolivar against the dollar for tourists.

Thus, the past year s currency alignments have, to some extent, simply brought relative domestic price levels and exchange rates into better balance.

In the 1980s, the dollar first soared against the Yen and European currencies, then it collapsed.

So, for now, China can bring monetary expansion under control while keeping the exchange rate fixed.

But the advantage for trade and investment implied by the absence of foreign exchange risks within the euro area is of greater economic importance.

The risk is that those countries that suffer from the switch retaliate and depreciate their own currencies.

The real effective exchange rate (a figure that takes into account changes in the exchange rates of the countries that are the main trading partners of the Russian Federation) will remain stable, officials say.

When Japan s financial bubble burst in 1990, the exchange rate stood around 140 Yen 1dollar.

Gradually the impact of the shock is transferred to output and domestic prices, and the exchange rate moves towards a new equilibrium.

Using the most recent exchange rates, T3 cost only 3.86 billion compared with 8.6 billion for London s T5.

It has also pressured other East Asian countries to under value their exchange rates in order to remain competitive with Japan.

Barring an unlikely international agreement, China, like Germany in 1973, will have to let its currency float.

The issue of the day was whether China's exchange rate is overvalued, and if so, what should be done about it.

Instead, the euro achieved what it was meant to achieve the crisis was contained, because it could not inflict damage on foreign exchange markets within the euro area.

These economies have since recovered a significant part of the lost ground in terms of exchange rates and asset prices.

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From past experience with national currencies, Europeans could have expected that any of these shocks would trigger a severe crisis in foreign exchange markets.

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By developing and disclose to the public a compelling rationale for what will determine the exchange rate when the time comes, the financial markets would then be able to forecast the future reference exchange rate more precisely.

Since that period the amount of capital ready to exploit any opportunity in foreign exchange markets has multiplied, which would make any comparable situation today much more dangerous.

That depends on when you think the financial crisis will abate, and the timing of that is as hard to predict as exchange rates.