F31 - Foreign ExchangeReturn

The article deals with the exchange rate policy of India in the period 1999-2013. The first part informs about specificity of Indian economy. These features (apart from the Great recession) have brought Indian economy to sluggish growth after 2010. Next part is concentrated on Indian exchange rate policy and forex exchange market. The last part scrutinizes Indian balance of payments. It pays attention to widening current account deficit till 2012. Moreover, the current account deficit has been financed primarily by debt for approximately last five years.

The article deals with the exchange rate policy of Brazil in period 1999 - 2012. The first part informs about the global development of the system of exchange rates and shows marked differences after 2008. This global course is supported in the case of Brazil. Next part is concentrated mostly on the interaction between exchange rate policy and internal and external equilibrium. Brazilian balance of payments seems to be suitable concept to catch these events, including often mentioned impacts of the so called unconventional monetary policy on emerging markets. Besides these effects the Brazilian economy was influenced by long-term changes in the global economy. Rising prices of Brazilian exported commodities belonged to the most important one. These prices influenced the exchange rate of the real. In authors´ point of view the recent development of Brazilian economy indicates the presence of the so called Dutch disease. The disease is closely connected to excessive (real) overvaluation of the currency and increasing volatility of terms of trade. To confirm this idea of the Dutch disease it is necessary to monitor forthcoming years very carefully.

Financial crisis in Europe and USA originates a set of questions linked to the effectiveness of solution for its impacts. Concerning this fact the growing dynamics of five big economies, so called group as BRICS - Brazil, Russia, India, China and South Africa, comes to the front of economists' interest. The article concentrates on the scope on exchange rate policy of Russia in period 1999 - 2011 and its impact for internal and external economic equilibrium in context of financial markets' instability. The subject of interest is mostly foreign currency market. The paper reflects goals and instruments of exchange rate policy, analyzes development of bilateral and effective exchange rate of ruble and is interested in an impact of exchange rate's volatility on inflation rate dynamics and real economic growth and other macroeconomic variables. The authors believe the exchange rate policy of Russia in observed period 1999 - 2011 was based on exchange rate framework with relatively higher flexibility. The chosen exchange rate policy influenced the dynamics of internal and external equilibrium. So they find out the presence of high share of spot operations on foreign exchange market what is not typical for flexible exchange rate systems.

Submitted paper consists of an assessment of potential risks of the Czech Republic's entry to ERM II exchange rate mechanism based on both evaluation of ERM II mechanism itself and review of experiences of other countries that have already been or still are a part of this mechanism. The article is split up to three parts. The first one pays attention to a comparison of ERM II and EMS exchange rate mechanisms and interpretation of exchange rate stabilization criteria fulfillment by EU Commission and by European Central Bank. In the second part experiences of two countries are described. For the purpose of this description Denmark was chosen that has been a part of this exchange rate mechanism since very beginning of its functioning, and Slovakia that was a part of ERM II just for minimum requested period before euro adoption. The third part focuses mainly on risks of the Czech Republic's entry to ERM II.

This article deals with theoretical aspects of translation exposure in connection with inflation and foreign exchange rate. The aim of the paper is to point out - using the hypothetical situation of a subsidiary whose currency is the currency of hyperinflation economy and who translates its balance sheet into currency of non-hyperinflation economy - that the closing rate method of translation can present the realistic view of the economic (market) situation of the firm only in that case when all compared items are revalued before translation by closing rate. The parent firm can reduce the translation exposure risk by hedging. Since it can use the expected items of the future balance sheet, hedging might be a problem.