Study suggests fx volatility may not hurt trade

Rapid changes in exchange rates do not appear to have a "robustly negative" impact on trade flows, a team of International Monetary Fund analysts said in a report released on Wednesday 19 May .

Read the IMF Paper "Exchange Rate Volatility and Trade Flows-Some New Evidence"

The study was requested by the director general of the World Trade Organization following a significant slowdown in world trade in 2001 and 2002. It was the IMF's first full-scale examination of the issue in 20 years.

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