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The Relationship Between Exchange Rates and International Trade. Mr. Li Ruogu Chairman and President of China Eximbank 27 March 2012. Outline. Complicated Relationship between Exchange Rates and Foreign Trade Exchange Rates Levels and Trade Imbalances
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The Relationship Between Exchange Rates and International Trade Mr. Li Ruogu Chairman and President of China Eximbank 27 March 2012
Outline • Complicated Relationship between Exchange Rates and Foreign Trade • Exchange Rates Levels and Trade Imbalances • Exchange Rate Volatility and Foreign Trade • The Causes of High Exchange Rate Volatility
Exchange Rate Volatility and Trade Growth Rate (%) Sources: IMF, BIS, World Bank WDI.
Exchange Rate Indices, Jan 2010=100 Sources: Bloomberg 1.Bilateral exchange rates against the U.S. dollar (increase denotes depreciation)
G20: Savings and Current Account 2001-2010 Average Sources: IMF WEO Database