Liquidity and Real exchange rate: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Layout.)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
1.  
The value of a currency in terms of real purchasing power.  


An asset's ability to be turned into cash quickly and without significant loss compared with current market value.


It is calculated by comparing the price of a hypothetical market basket of goods in two different countries, translated into the same currency at the prevailing exchange rate. 


2.
It is useful in measuring the price competitiveness of domestic goods in international markets.
 
An entity’s ability to pay its obligations when they fall due, especially in the short term.
 
 
3.
 
An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.
 
 
4.
 
A financial measure designed to quantify an entity's ability to meet its obligations when they fall due.
* For non-financial organisations, simple measures of liquidity include the ''current ratio'' and the ''quick ratio''.
* For banks and other financial institutions, liquidity measures include those which identify how long the bank could survive if wholesale funds were to dry up and retail funding was heavily stressed. This period is known as the ''survival period''.




== See also ==
== See also ==
* [[Authorisation]]
* [[Currency]]
* [[Authority limits]]
* [[Exchange rate]]
* [[Cash and cash equivalents]]
* [[Real]]
* [[Cash forecasting]]
* [[Cash pool]]
* [[Current ratio]]
* [[Deep market]]
* [[Headroom target]]
* [[Illiquid]]
* [[Liquidation]]
* [[Liquidity buffer]]
* [[Liquidity Coverage Ratio]]
* [[Liquidity preference]]
* [[Liquidity management]]
* [[Liquidity premium]]
* [[Liquidity risk]]
* [[Money management]]
* [[Net stable funding ratio]]
* [[Quick ratio]]
* [[Run]]
* [[Security]]
* [[Solvency]]
* [[Supply chain finance]]
* [[Survival period]]
* [[CertICM]]
* [[Yield]]
 
 
=== Other resources ===
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]


[[Category:Liquidity_management]]
[[Category:Manage_risks]]

Latest revision as of 23:46, 11 March 2023

The value of a currency in terms of real purchasing power.


It is calculated by comparing the price of a hypothetical market basket of goods in two different countries, translated into the same currency at the prevailing exchange rate.

It is useful in measuring the price competitiveness of domestic goods in international markets.


See also