Question
Theoretical Interest Rate Parity (IRP) calculations for forward foreign exchange (FX) values in Emerging Market countries may not always align with actual forward FX rates
Theoretical Interest Rate Parity (IRP) calculations for forward foreign exchange (FX) values in Emerging Market countries may not always align with actual forward FX rates because of:
Time zone differentials
Credit Waterfall Theory
Sovereign credit spreads
Different local laws
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
