Business Finance
King Saud University Swiss Franc and Japanese Yen Appreciation Discussion Questions

king saud university

Question Description

I’m working on a Business question and need guidance to help me study.

1. What are the explanations of the recent appreciation of the Swiss franc and Japanese yen?

2. What are the consequences thereof on the Swiss and Japanese economies?

3. How can Japanese and Swiss corporations sort out the volatility of their domestic currency?

4. What can these countries' central banks do to alleviate the issue? What are the pros and cons of such measures?



Total answers must be about (1000 words).

4 references at lest


Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Final Answer

Attached.

Running head: SWISS FRANCE AND JAPANESE YEN APRECIATION

Swiss Franc and Japanese Yen Appreciation
Name
Institution

1

SWISS FRANCE AND JAPANESE YEN APPRECIATION

2

Question 1
The Swiss National Bank settled on terminating its plan of overriding in the foreign
exchange market to maintain the euro exchange level with Swiss franc to be more than 1.20
Swiss francs to euro. At a certain point, the Swiss franc scaled by almost 40% against euro,
concluding the day at nearly 20% higher, at close equivalence with the world currency. The
Swiss franc takes the fifth position in the global FX liquidity, after the American Dollar,
Japanese yen, British pound, and euro (Yesin, 2017). Yen and franc are among the most
attractive currency used. Hence, in strong international economic situations, the two currencies
are often used by investors to purchase currencies which have high interest rates. The borrowing
reduces demand for these two currencies since they are as a result being traded, which lessen
their prices.
The Swiss franc and Japanese yen are prominent safe haven moneys. Recession period
that occurred in the world’s economies following the upsurge of the subprime catastrophes
during August 2007 has proven the safe haven of the two currencies. The intensification of the
global disaster made the currencies for the two countries to experience an upsurge of enormous
appreciation. The scale of the appreciation as well as its costs when it comes to deflationary
weights and production cost in the aspect of limits less than zero restriction required economic
authorities in japan and Switzerland to assume alternative strategies to restrain the increas...

DrAtticus (10926)
UIUC

Anonymous
Top quality work from this tutor! I’ll be back!

Anonymous
It’s my second time using SP and the work has been great back to back :) The one and only resource on the Interwebs for the work that needs to be done!

Anonymous
Thanks, good work

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4
Similar Questions
Related Tags