Interest rate parity and Internal control: Difference between pages

Revision as of 09:16, 3 June 2015

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

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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 foreign exchange rate|forward foreign 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 ==
+*[[Access control]]
-IRP holds very strongly for actively traded currency pairs; less so for currencies which are not so actively traded.
+*[[Application controls]]
+*[[Controls]]
+*[[Operational risk]]
-== See also ==
+*[[Personnel control]]
-* [[CertFMM]]
+*[[Physical access control]]
-* [[Covered interest arbitrage]]
+*[[Physical control]]
-* [[Efficient market hypothesis]]
+*[[Segregation of duties]]
-* [[Foreign exchange]]
+*[[System and network controls]]
-* [[Forward forward rate]]
-* [[Four way equivalence model]]
-* [[Interest rate]]
-* [[No arbitrage conditions]]
-* [[Spot rate]]
 [[Category:Manage_risks]]