International finance

Free IMA CMA Part 2 (Strategic Financial Management) lesson in Corporate Finance. 11 min read, ~1,668 words.

A depreciating home currency makes exports cheaper abroad and imports more expensive at home; an appreciating home currency does the reverse. Exchange rates move with interest rate differentials, inflation differentials, balance of payments, political risk, and central bank intervention. Percent currency change uses new minus old over old and is...