Interest rate parity and Internal control: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Link with Controls page.)
 
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(IRP).
Part of an internal system to reduce operational risk.<br />
 
For example, segregation of duties.<br />
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]]
* [[Covered interest arbitrage]]
* [[Efficient market hypothesis]]
* [[Foreign exchange]]
* [[Forward forward rate]]
* [[Four way equivalence model]]
* [[Interest rate]]
* [[Spot rate]]


[[Category:Manage_risks]]
*[[Access control]]
*[[Application controls]]
*[[Controls]]
*[[Operational risk]]
*[[Personnel control]]
*[[Physical access control]]
*[[Physical control]]
*[[Segregation of duties]]
*[[System and network controls]]

Revision as of 10:53, 31 May 2015

Part of an internal system to reduce operational risk.
For example, segregation of duties.


See also