18 - The Eurobond market I

The purpose of this study is to analyze the impact of Covid-19 in the Rupiah Exchange Rate on the United States Dollar and the Composite Stock Price Index in Indonesia. The data used are primary and secondary data: the Rupiah Exchange Rate and the CSPI value taken for 66 days starting from October 2019 to March 2020. The data were analyzed descriptively by explaining the impact caused by Covid-19. The results found that the Covid-19 Pandemic harmed the economy both the Rupiah Exchange Rate against the US Dollar and the movement of the Composite Stock Price Index in Indonesia. The findings found that before the Covid-19 Pandemic the value of the Rupiah against the US Dollar and the movement of the Composite Stock Price Index experienced negative sentiment while after the Covid-19 pandemic it moved negatively due to negative sentiment from market participants who were still focused on the spread of the Covid-19 pandemic in Indonesia, as well as many market players who still sell shares because of global panic. Nevertheless, the Indonesian government has anticipated the economic downturn in Indonesia by implementing fiscal policies, to reduce the negative impact of the Covid-19 pandemic.

This paper investigates whether the euro or renminbi could join or even replace the US dollar as a dominant global reserve currency. The US dollar has long been dominant in international trade and finance, due to the size and stability of the US economy and the liquidity of US financial markets. The euro of the European Union (EU) and the renminbi of China challenge the hegemony of the US dollar. The Eurozone’s institutional framework provides political stability and strong monetary authority, which make the associated currency, the euro, attractive as a potential reserve currency. China’s rise as a global economic power promotes the use of its currency in international transactions, propelling global acceptance of the renminbi. China has explicitly challenged US dominance in many international arenas, including finance. In this paper, it is useful for an econophysics approach to measure the sign of the strength of coupling. This approach is adapted to define the divergence rate of the US dollar in relation to other currencies, specifically the euro and the renminbi, by quantifying how the dollar diverges over time based on currency indexes. It involves calculating forces that represent the divergence rates between the US dollar and these currencies, using a modified version of Coulomb’s law. It also illuminates the dynamics of reserve currency competition, reaffirming the US dollar’s central role in the global financial system from 2001 to 2022. Despite the emergence of potential challengers like the euro and renminbi, the dollar’s dominance is likely to continue. As China’s economy, international trade, and military power have expanded, the renminbi is increasingly seen as a potential reserve currency in the global financial system. However, China has shown a willingness to centralize political power, perhaps making other countries more likely to resist the renminbi becoming a reserve currency. The euro and renminbi do not present credible alternatives to the US dollar because (1) political fragmentation within the EU and differing fiscal policies among member states undermine the euro’s reliability as a universal reserve asset, and (2) China enacts significant capital controls, lacks financial market transparency, and maintains a tight grip on economic policies. The US dollar’s unparalleled liquidity, its deep financial markets, and America’s geopolitical influence ensure the dollar’s continued dominance as the world’s primary reserve currency. The inherent structural and political challenges the euro and renminbi face make both unlikely to displace the dollar in the foreseeable future. Broader US hegemony, arising from it having the world’s largest economy and strongest military, has supported the dollar’s dominant role as a reserve currency, a dominance expected to endure.

Предметом исследования является система экономических отношений в процессах функционирования ракетно-космической отрасли. В данной статье автор выделил основные проблемы существующей системы развития инновационных процессов в корпорациях ракетно-космической отрасли; провел анализ деятельности космических корпораций на международном космическом рынке за 2000-2020 годы. В настоящей работе представленная модель взаимодействия участников отечественного рынка космических технологий, которая направлена на создание конкуренции на отечественном (внутреннем) рынке космических услуг (продукции) в противовес существующей концепции распределения бюджетных средств, выделяемых на космические программы. Органы государственной власти, ответственные за развитие ракетно-космической промышленности, а также частные и государственные компании, принимающие участие в реализации крупных инновационных ракетнокосмических проектов, составляют основу государственно-частного партнерства. Существующая в настоящий момент структура взаимодействия научных институтов и конструкторских бюро при реализации космических программ не породила желаемой конкуренции на отечественном космическом рынке. Принципиальная позиция предлагаемой модели взаимодействия при осуществлении космических программ заключается в необходимости наличия на отечественном рынке, помимо государственных, заказчиков из частного сектора. The subject of this research is the system of economic relations in the processes of functioning of the rocket and space industry. In this article, the author highlighted the main problems of the existing system for the development of innovative processes in corporations of the rocket and space industry; conducted an analysis of the activities of space corporations in the international space market for 2000-2020. In this paper, we present a model of interaction between participants in the domestic market for space technologies, which is aimed at creating competition in the domestic (domestic) market for space services (products) as opposed to the existing concept of allocating budgetary funds allocated to space programs. State authorities responsible for the development of the rocket and space industry, as well as private and state companies involved in the implementation of large innovative rocket and space projects, form the basis of public-private partnerships. The current structure of interaction between scientific institutes and design bureaus in the implementation of space programs has not generated the desired competition in the domestic space market. The fundamental position of the proposed model of interaction in the implementation of space programs is the need for the presence in the domestic market, in addition to government, of customers from the private sector.

This article updates one of four trends in the US economy which were highlighted in a previous paper Whither the US economy published in 1999 in this Review. It focuses on the developments in the external accounts. In addition to showing a rapid increase in the negative US current account balance, the article stresses the importance of two new developments which have acquired increasing prominence: the accumulation of large foreign exchange reserves, mainly in US dollars, by other countries especially in Asia and the accumulation by those countries of large amounts of US Treasury securities. The resulting new situation has serious potential worldwide repercussions should those countries decide to diversify their reserves and to reduce their holdings of US securities. These prospects call for solutions with global participation, and which are much broader in scope, including structural changes, than mere readjustments of exchange rates between the US dollar and the currencies of the main surplus countries. JEL Codes: E66, O51 Keywords: US economy, exchange reserves, exchange rates

Financial centers and ownership concentration: When is ownership concentration value relevant? Evidence from an emerging market

Capital Account Restrictions, Exchange Rate Volatility, and Firm Value

History, gravity and international finance

Can Bitcoin trigger speculative pressures on the US Dollar? A novel ARIMA-EGARCH-Wavelet Neural Networks

The goal of carbon peak and carbon neutralization has accelerated the pace of building a high percentage of renewable energy power systems. However, the uncertainty and volatility of renewable energy bring many challenges to the stable operation of electricity market. In the new context of power market reform, it is necessary to establish a better trading mechanism and price subsidy mechanism for renewable energy participation in the market. This paper analyzes the impact of renewable energy participation in electricity market on market operation, market equilibrium and bidding strategies of market players. Then, we propose the potential means to cope with the market risk of renewable energy, compare the market mechanisms and development policies of various countries, and summarize relevant studies on renewable energy participation in electricity market in countries around the world. Finally, the development of a high percentage of renewable energy participation in the electricity market of China is summarized and prospected.

Lognormal vs Normal Volatilities and Sensitivities in Practice

Subject Cooperation between South-east Asian countries on currencies. Significance Central banks in Indonesia, Malaysia and Thailand have agreed to promote the use of their currencies in bilateral trade and investment transactions, as part of efforts to shield the region from heightened global financial risks. Separately, ASEAN members will extend currency swap arrangements with economic partners China, Japan and South Korea. Impacts Collaborative market interventions will not prevent further loss of value for the major ASEAN currencies in 2017. All ASEAN economies can withstand external stresses until markets stabilise, probably after Trump's policy plans are clarified. Reforms of regional liquidity facilities and swap arrangements will give vulnerable countries speedier emergency funding access.

Channel catfish in China: Historical aspects, current status, and problems

This paper focuses on the rivalry between the US and China, with particular emphasis on the renminbi (RMB) and the US dollar. It examines three related points. First, for China to upend the dominance of the US dollar and replace it, even partially, with the RMB would require major—and probably disruptive— changes in China’s financial markets and monetary policies. Is the Chinese government willing to take those steps? Second, can China overtake the US economy and provide another incentive for international investors to start switching to the RMB? And third, is it still a question of whether de-dollarisation is happening, or has the question moved on to asking how fast the RMB can rival the US dollar in the 21st century? Finally, the paper examines China’s economic problems, which are set to damage the RMB’s reputation and progress as a reserve currency.

ABSTRACT: This paper focuses on the rivalry between the US and China, with particular emphasis on the renminbi (RMB) and the US dollar. It examines three related points. First, for China to upend the dominance of the US dollar and replace it, even partially, with the RMB would require major—and probably disruptive—changes in China's financial markets and monetary policies. Is the Chinese government willing to take those steps? Second, can China overtake the US economy and provide another incentive for international investors to start switching to the RMB? And third, is it still a question of whether de-dollarisation is happening, or has the question moved on to asking how fast the RMB can rival the US dollar in the 21st century? Finally, the paper examines China's economic problems, which are set to damage the RMB's reputation and progress as a reserve currency.

Over the past decade, numerous changes have taken place in the banking sector. Hong Kong has been effectively transformed into an international financial center where not only financial transactions but also actual operations are carried out. The internationalization also brought with it an influx of foreign banks in the 1970s, especially when the Hong Kong government lifted the moratorium on bank licensing in 1978. Unlike Singapore, Hong Kong is an integrated financial center without any delineation between offshore and domestic banking business. Thus, foreign banks could always enter into the domestic market, provided that they had been granted a bank license. This fact has created intense competitive pressure in the domestic banking sector.