The twin faces of emerging Asia's currency forward markets in an imperfect setting

• Autores: Suresh Ramanathan, Kian-Teng Kwek
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 23, Nº. 16-18, 2013, págs. 1433-1446
• Idioma: inglés
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• Resumen

  • Covered interest parity fails to occur in both the onshore and offshore currency forward markets for emerging Asia. The deviation is largely influenced by a two-tier currency forward market given the barriers to capital flow, with the exception of Hong Kong. The structural difference between onshore and offshore currency forward markets lends support for arbitrageurs to exploit the segmentation of markets.