Currency valuation (with respect to other currencies) is an important parameter in finance, but how is it related to the cash reserve ratio?

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    $\begingroup$ In the title for your question, you use the term "cash reserve ratio". Do you mean "foreign reserves" as in, the foreign reserves that a country might use to defend its currency? Or are you talking about "bank reserves" as it applies to interest rates, and then how interest rates affect the associated exchange rates? $\endgroup$ – bill_080 Apr 19 '11 at 16:54

Here's a little bit of everything.

1) Some papers on foreign reserves that are used to defend a country's currency, and the flexibility of their exchange rate:



2) Some papers on generic modeling of exchange rates:


Figure 1 in the above link is a common view of the short/medium/long-term variables that affect exchange rates.


3) If you're trying to play with exchange rates as a retail investor, you need to be aware of the game/scams:




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