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Exchange Rate Risk, Dollar Appreciation, And U.S. Export Credit Programs

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  • Baxter, Timothy M.
  • Smith, Mark E.

Abstract

Exchange rates clearly influence U.S. agricultural exports. One particular area of concern is the influence of exchange rate risk and dollar appreciation on the Commodity Credit Corporation's (CCC) export credit guarantee programs. This report examines whether it would be worthwhile to institute an exchange rate guarantee program covering credit repayments under the CCC's export credit programs. Using the GSM-102 program experience during fiscal years 1980-85 as a guide, the evidence suggests that an exchange guarantee program probably should not be adopted.

Suggested Citation

  • Baxter, Timothy M. & Smith, Mark E., 1987. "Exchange Rate Risk, Dollar Appreciation, And U.S. Export Credit Programs," Staff Reports 277944, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:277944
    DOI: 10.22004/ag.econ.277944
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    References listed on IDEAS

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    Cited by:

    1. Dahl, Bruce L. & Johnson, D. Demcey & Wilson, William W. & Gustafson, Cole R., 1995. "Credit Guarantee Programs in International Grain Markets: Background and Issues," Agricultural Economics Reports 23331, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Dahl, Bruce L. & Wilson, William W. & Gustafson, Cole R., 1995. "Valuing Option Provisions for Export Credit Guarantees," Agricultural Economics Reports 23269, North Dakota State University, Department of Agribusiness and Applied Economics.

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