The chief financial officer (CFO) has noticed news about China and its unwillingness to let its currency, the yuan, float freely in foreign exchange markets. He has been wondering if other countries might do the same thing for similar reasons. Because this could have a profound impact on the new globalization strategy that the chief executive officer (CEO) has launched, he asked you to write a report for him that covers the following topics:
- Give a brief history of the foreign exchange systems, beginning with the gold standard up to today’s current exchange rate system.
- This must be more than just a chronological list. It must explain the reasons for the evolution in the exchange rate system.
- What were the specific reasons why the gold standard was eliminated?
- How does a floating exchange rate system work?
- What is managed float or a managed floating exchange rate system?
- What happens when a country’s central government intervenes in the exchange markets? What does it do, and why?
- What does the phrase pegging a currency to the dollar mean? Give a real-life example. Why would a country’s central bank choose to do this?
- What are some advantages to a firm issuing Eurobonds to raise debt capital as opposed to normal bonds that are sold in a country and are denominated in the selling country’s currency?
Assignment should be anywhere from 900-1500 words in length. With at least 4 References used and in APA format.
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x xxxxxxxxx for the delay. Let me xxxx xx xxx xxxx anything xxxxxxxxxxxx
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Running xxxxx FOREIGN EXCHANGE xxxxxxxxxxx
xxxxxxx xxxxxxxx Systems
The international exchange market xxxxxxx every day xx exchange rates fluctuate daily. In xxxx paper, I shall xxxxxxx the xxxxxxx of the exchange system. x shall explain xxx xxxxxxxx system xxx the meaning of x managed float. xxx meaning xx central bank intervention onto xxx exchange rate shall be xxxxxxxx while giving xxxxxxx for xxxxx it. The xxxxxxx of pegging x currency to xxx dollar shall xx xxxxxxxx xxxxx giving xxxxxxxx xx states xxxx have a xxxxxx xxxxxxxxx Finally, xxx benefits of x Eurobond xxxx a normal xxxx xxxxx be critically xxxxxxxxx
The xxxxxxx exchange xxxxxx xxxxx back to 1875. It xxx the xxxx xxxxxxxx xxxx xxxx of exchange xx xxxx xxxxxxx xxxx xxx xxxxxx xxxx considers xx the most valued xxxxx xxxx xxxxx be xxxx xx currency by xxxx states. xx xxxx xxxxxxxxxxx would agree on xxx xxxxxxxxxxxx xx xxxx xx currency xxx vice xxxxxx Therefore xxxx xxxxxx backed xx
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