Exchange Rates & Trade Policies – Impacts on International Trade

Programme description & objectives

Any country, government, firm, or individual that engages in international trade must understand the intimate relationship between trade and exchange rates. There definitely exists a significant relationship between exchange rates, capital mobility, and international trade. Therefore, whether determined by exogenous shocks or by deliberate government policies, the relative valuations of currencies and their volatility would most ultimately have significant repercussions on the volume of international trade, the balance of payments, and the overall economic performance of a country. Given the above realization, this program is, therefore, structured to investigate the importance of exchange rates and its effects on international trade. Drawing from a wealth of experience, the facilitators would analyze the impacts of exchange rate volatility and the consequent misalignment on trade. In addition, facilitators would explore the effects of exchange rate misalignments on governments’ trade policy decisions. Finally, and by the end of the program, delegates would be engaged in discussions that focus on contemporary and topical issues that are relevant to the subject matter. Such discussions would be with a view to identifying and examining practical recommendations that would help alleviate the challenges that practitioners and stakeholders encounter.

Venues, Dates & Cost

VenuesDublinLondonDubaiEdmonton (CAN)Lagos/Abuja
DatesTBDTBDTBDTBDTBD
Cost$3,900 per participant (USD)(=N=)

For Whom

  • Central banks, Commercial banks & Investment banks
  • Trading Companies with Export and Import Departments
  • Foreign Exchange Dealers
  • Brokerage Companies

Snapshot of course content

  • Overview of subject matter
    • The impact of exchange rate variability on trade
    • Background on international monetary system
    • Balance of payment
    • Balance of payment equilibrium
    • The exchange rates
    • Fixed exchange rates
    • Flexible exchange rates
    • Mixed exchanged rates
    • Monetary stability under the different exchange rates
    • Fundamental forces determining exchange rates
  • Exchange rate volatility & trade
    • Exchange rate volatility risks
    • Volatility risks for traders
    • Volatility risks for investors
    • Volatility and the choice of exchange rate system
  • International trade policies
    • Trade imbalances and its causes
    • Forms and types of trade restrictions
    • International trade problems arising from changing values of currencies
    • Relationship between exchange rates and the multilateral trading system
    • Exchange rate and balance of payment
    • Effect of exchange rates on resource allocation
  • Misaligned exchange rates: The attendant and probable after effects
    • Overvalued currency
    • Domestic management of overvalued currency
    • Export tax and import subsidy
    • Contraction of domestic production of tradables
    • Protectionism policies
    • Undervalued currency
    • Expand production of tradables
    • Protection of tradables relative to non-tradables
    • Real exchange rate and antidumping
    • Real exchange rate and protectionist legislation
    • The concept of Fundamental Equilibrium Exchange Rate (FEER)
  • Contemporary issues on exchange rates & trade policies
    • Politics and the exchange rate
    • Political factors in the determination of currency policy
    • Special interest groups
    • Electoral considerations
    • Discussions on monetary and fiscal policies that support trade