For international investments:
Direct investment: The exchange rate impact on the value of the capital that foreign investors invested or joint ventures. Currency capital or capital goods included in the host country is usually converted into the national currency at the official rate. Besides, the exchange rate also has an impact on production costs and efficiency of foreign investment activities. So change the exchange rate have a certain influence on the behavior of foreign investors in deciding whether to invest in the host country or not.
Investments indirectly: A type of investment through International credit operations as well as the sale of securities with market prices.
Profits of foreign currency loans Currency Interest Rate = Discount + currencies
in the world with the international flow of capital TGHD economic freedom increased total revenues from foreign currency denominated loans larger domestic interest rates will occur overseas capital inflows and capital outflows fell backwards TGHD will pour into the country.
So you want to create the environment stable investment for economic development requires countries to build and adjust a stable exchange rate policy reasonable level of risk reduction in the fields of investment and attract foreign investment.
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