The twin faces of emerging Asia's currency forward markets in an imperfect setting

Covered interest parity fails to occur in both the onshore and offshore currency forward markets for emerging Asia. The deviation is largely influenced by a two-tier currency forward market given the barriers to capital flow, with the exception of Hong Kong. The structural difference between onshore and offshore currency forward markets lends support for arbitrageurs to exploit the segmentation of markets.

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Year of publication:	2013
Authors:	Ramanathan, Suresh ; Kwek, Kian-Teng
Published in:	Applied Financial Economics. - Taylor & Francis Journals, ISSN 0960-3107. - Vol. 23.2013, 18, p. 1433-1446
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010760574