Introduction to Foreign Exchange Rates

Index

A

Absolute purchasing power parity (APPP), 49–55, 87

Accumulated other comprehensive income (AOCI), 157

Actual forward FX contract, accounting for, 160

Adjusted APPP, 70–77

Advanced and emerging economies, 6

Airbus, 160–161

Altria Group, 158–159

American terms, 2

AMOUNT (in a forward FX contract), 127, 128, 131

AOCI. See Accumulated other comprehensive income

APPP. See Absolute purchasing power parity

Arbitrage, 12

Asset market approach, 107–108

B

Baker adhesives, 151–152

Balance of payments (BOP), 21–25

deficit, 22

surplus, 22

Balassa–Samuelson effect, 70, 77

Bank for International Settlements (BIS), 24

Bank FX forecasts, 89

The Bank of Canada, 112

Base currency, 1

Big Mac Adjusted PPP Index, 73–74

Big Mac Purchasing Power Parity Index, ...