Interest rate parity and Privatisation: Difference between pages

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(IRP).
The transfer of a business or an activity from public ownership and control to private ownership.
 
 
This theory describes the expected relationship between [[Spot rate|spot]] and [[Forward forward rate|forward forward exchange rates]], and the [[Interest rate|interest rates]] in the related currency pair.
 
Under efficient market conditions the interest rate parity theory predicts that the forward FX rate (available in the market today) should be equal to the spot FX rate, adjusted for the difference in interest rates between the currency pair over the relevant period.
 


== See also ==
== See also ==
* [[CertFMM]]
* [[Nationalisation]]
* [[Covered interest arbitrage]]
* [[Efficient market hypothesis]]
* [[Foreign exchange]]
* [[Forward forward rate]]
* [[Four way equivalence model]]
* [[Interest rate]]
* [[Spot rate]]


[[Category:Manage_risks]]

Revision as of 14:20, 23 October 2012

The transfer of a business or an activity from public ownership and control to private ownership.

See also