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Journal : Fokus Ekonomi

ARBITRAGE AND INTEREST RATE PARITY: IMPLICATIONS FOR FOREIGN EXCHANGE INVESTORS AND SPECULATORS Febrianto, M. Nanang; Subagiyo, Rokhmat; Aswad, Muhammad
Fokus Ekonomi : Jurnal Ilmiah Ekonomi Vol 20, No 1 (2025): June 2025
Publisher : STIE Pelita Nusantara Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.34152/fe.20.1.86-97

Abstract

Globalization has an impact on the development of international trade, which can increase market share. In addition, in foreign exchange trading, currency is not just a transaction tool but also a commodity traded in the foreign exchange market. The study aims to analyze arbitrage and interest rate parity on its implications for foreign exchange investors and speculators. Secondary data used in the study were obtained from books, national and international edited journals, news, and working papers conducted by a literature review. It is found that unstable economic conditions, increased inflation, and speculators can increase the volatility of exchange rate imbalances in the foreign exchange market. exchange rate differences can be utilized by arbitrageurs and will naturally move towards efficiency. However, the enactment of purchasing power parity implies indifferent behavior to invest domestically or internationally because the returns obtained are not greater than domestic. In addition to maintaining foreign exchange stability, intervention policies are needed through controlled floating exchange rates, interest rate policies, maintaining liquidity and capital flows carried out by monetary authorities and central banks, as well as reducing import dependence and increasing exports
Co-Authors . Hasbunallah AS Abd Halim Umar Abd. Haris Abdul Gaffar Haris abdul Rauf Sulaeman Abidah, Asiska Nur Adlan, Muhamad Aqim Ahmad Abbas Ahmad Budiman, Ahmad Ahmada, Muhamad Agus Alfiyan Nur Ahmed Sardi Aisyah Fatmawaty Ali H Alindra Yanuardi Ambo Lallo, Subehan Aminuddin Aminuddin Anwar Sewang Aqim Adlan, Muhammad Ardiansyah Ardiansyah Arsyad, Muhammad Aryadi Ashlihah Azizah, Irtifa Umi Bahktiar, Jusuf Barambangi, Jamil Binti Nur Asiyah Burhan, Asril Dede Nurohman Deris Lazuardi Djabir, Yulia Yusrini Djalaluddin, Nurgadima Elly Wahyudin Febrianto, M. Nanang Firmansyah JN, Muh Fitriah, Reski Fortunasari, Fortunasari Gemini Alam Hajati, Kartika Hardiana, Iyan Hidayah, Arifah Rohmatul HIDAYAT, MARZUL Hijayati, Siti Sofiyah Hijra HM., Rahmaniah Hudain, Muh. Adnan Ikrar Taruna Syah, Ikrar Taruna Iqbal Iqbal IRMA YULIA MADJID, IRMA YULIA Kamil, Dairabi Kasim, Athia Kurnia Khaerati, Rahma KHASANAH, KHOLIFATUL Latif, Wenry Deston Latifah Rahman Lestari, Anggita Della Lestari, Lisa Yuni Linawati, Diana Lomba Sultan M. Nanang Febrianto Mappaompo, M. Adam Marianti A Manggau Matias N Kolobani Mohammad Anis Sumadi Muh. Akbar Bahar Muh. Akbar Bahar, Muh. Akbar Muhamad Aqim Adlan Muhammad Arsyad Muhammad Syahrul Hidayat Mulia Ardi Mulyani, Ariny Aggreni Mustika Nur Astuti Nur Adyla S Nur Iman Saal Nur Zamzam Nurchalis, Nur Fadillah Nurdina Rasjid Nurrohman, Dhika Nursal, Muhammad Akbar Nursamsiar Nursamsiar Oftafiana, Triya Prasojo, Hendris Agung Pratiwi, Putri Hidayanti Putri, Dwi Anggara Rafiqa Rafiqa Raida Asfihana Ramadhani, Nur Rina Agustina Risfah Yulianti Risfah Yulianty Rohmah, Siti Lailatur Rokhmat Subagiyo Rokhmat Subagiyo, Rokhmat Rusdiah Salsabila, Chairunnisa Samsul Huda Santoso, Irvan Widi Singh, Amreet Kaur Jageer Sohrah Sohrah, Sohrah Sutikno, Johan Dwi Syamsiyah, Siti Itsna Syamsu Nur, Syamsu Tadjuddin Naid Tumigolung, Aprilia Ester Eunike Utami, Rahmawati Ning Utoro, Bambang Wahyu Hendrarti Wirentake Yasir, Budiman Yensawai E. Rumbiak Yudi Azis Yunus, Ayyub Yusnita Rifai, Yusnita Zhulal