The Foreign Exchange Rate Exposure of Nations

Following the well-known approach by Adler and Dumas (1984) we evaluate the foreign exchange rate exposure of nations. Results based on data from 27 countries show that national foreign exchange rate exposures are significantly related to the current trade balance variables of corresponding economies.

Entorf, Horst, Jochen Moebert and Katja Sonderhof (2007), The Foreign Exchange Rate Exposure of Nations, ZEW Discussion Paper No. 07-005, Mannheim.