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EQCHANGE annual assessment 2020

Author

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  • Carl Grekou

Abstract

This publication, accompanying the 2020’s update of EQCHANGE, aims at providing an overview of exchange rate misalignments for 2019. In a nutshell, changes in the exchange rate misalignments on the eve of the Covid-19 pandemic have been relatively modest except few EMEs and DCs that registered large swings. This is especially the case of Egypt, India and Nigeria, and to a lesser extent of Brazil, Indonesia and Thailand. The Turkish lira, despite a continued plunge, maintained its large undervaluation due to the inflation spur. The US dollar, owing to its appreciation, registered a small increase in its overvaluation. The currency movements vis-à-vis the US dollar shaped most of the dynamics in the advanced economies that generally registered downward movements in the currency misalignments. This holds also for the Chinese renminbi that still appear broadly in line —with its fundamentals— despite a depreciation. In Europe, Germany, Ireland, Norway, Sweden, and the United Kingdom displayed undervaluations; Finland, France, Italy and Luxembourg were close to their equilibrium; and Belgium, Austria, Greece, Portugal and Spain displayed overvaluations.

Suggested Citation

  • Carl Grekou, 2020. "EQCHANGE annual assessment 2020," Working Papers 2020-16, CEPII research center.
  • Handle: RePEc:cii:cepidt:2020-16
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    File URL: http://www.cepii.fr/PDF_PUB/wp/2020/wp2020-16.pdf
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    More about this item

    Keywords

    EQCHANGE; Exchange Rates; Currency Misalignments; Global Imbalances;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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