Currency Devaluation Impact on Exports and Imports - Essay Example

The Impact of Currency Devaluation on Exports and Imports of an Economy Introduction The string currency of an economy is considered as an evident of strong economic growth therefore, exchange rate is considered very important to make important policy and investment decisions. In economics, a strong relation exists between exchange rate and trade balance of an economy, therefore, in the aim of this report is to evaluate the nature of this relationship. Moreover, through different statistical tools, the impact of currency devaluation will be analysed on exports and imports of Asian economies. This report analyse the impact of exchange rate on trade of Asian economies by using statistical tools such as correlation, graphs etc. After the data collection, average method has been used to derive monthly averages of currency exchange rates. The analysis starts from correlation test to understand the nature of relationship. After that graphical interpretations have been developed to analyse the trends in data. Finally, criticism on data has been presented with a few recommendations to improve the method of data collection. Moreover, primary data collection sheets have been also presented to improve the quality of data. Data Collection Data has been collected as it is from reliable websites.1 The daily currency exchange rate has been converted into average monthly data by using following formula. Monthly Average of currencies = Sum of daily currency exchange rate/Number of days in a month Correlation Correlation analysis has been done to analyse the nature of relationship between exports and imports and exchange rates of the countries. For example, how the collected eleven months data of Chinese Yuan is correlated with Chinese exports and imports. The correlation of Yuan with Chinese exports gives 0.59, which means that a positive correlation exists between Chinese exports and Yuan (Table IV – Appendix). In other words, with increase in the value of Chinese Yuan against Dollar, the exports of China to the United States will increase. Although the data has been collected from very reliable resource still, the derived values of correlation are giving very different results. According to economic concepts, the devaluation of currency is positively related to the exports and negatively related to imports of an economy. The reason is that devaluation of currency makes the products of the country cheaper in the international market and the demand of exports in international market increases. Although the prices of the products decline however, the increased volume of exports enhances the exports value of the country. On the other hand, when goods become cheaper because of devaluation of currency, people need more money to buy the imported products therefore, the imports of the country from other states decline. Because of this relation between trade balance and currency exchange, sometimes many countries devalue their currencies. Graphical Interpretations To qualitatively analyse the data, following graphs have been created. Graph I (Appendix) is a line graph and it shows the trends in the exports and imports of selected countries, over the period of eleven months against currency exchange rate. The data on x-axis is the exchange rates of the currencies in terms of dollars and they are not in ascending or descending order, rather they have been taken in order from January to November. The line graph shows that the Chinese exports declined from 24,748 to 18,874 when the exchange rate declined from 14.65 to 14.64 (Values in Table I and III in appendix). To individually interpret the impact of exchange rates on the values of exports and imports of each country, scatter graphs have been developed. Graph II shows the exports and imports of China during 2009 and highlights a positive relationship between Chinese exports and imports and exchange rate. The graphs from III-VIII (Appendix) also explain the same relationship in the case of other countries. Therefore, the scattered and line graph also support the results drawn from correlation, however, the results drawn from this data do not support the theoretical relationship between imports & exports and exchange rate. Moreover, there are various other statistical tools which can be used to analyse and interpret this data however, it is not necessary to use all statistical tools to analyse data. Criticism on Data Selected One after seeing these graphs may criticise that the values of currency exchange rates on x-axis should be shown in ascending order, however, it has been assumed while developing these graphs that instead of identifying a general trend in exports and imports data of countries, the aim of these graphs is to identify the points where the devaluation of currency tool place during the eleven months of the year and what happened to values of exports and imports during this point. Another criticism can be raised on implication of this concept only between the United States and Asian countries. Actually, the data of imports and exports of Asian countries with the United States has been taken because of some reasons. First, the data was easily accessible from the United States Bureau website and it is also authentic data. Second, the currency exchange rates of the countries has been presented in terms of dollars and the values of exports and imports of countries have been also given in terms of dollars therefore, since the units are same, a consistency has been ensured in the selected data. Improvements in Data First, the improvements in data could be made if instead of taking the monthly imports and exports, the data would have been selected based on commodity. Second, the currency devaluation does not have a long term impact therefore, rather than taking monthly data, the weekly data of imports and exports should be taken when currency devaluation happened. Moreover, relationship should have been seen with a lag of at least two weeks because impact of currency devaluation is not immediate. Primary Data Collection Sheet To improve the quality of data, the primary data collection sheets have been presented. Although finding weekly data by commodity for any country is difficult to obtain however, it can improve the results of the topic under discussion. Secondly, introducing a lag between exchange rate and trade will also improve the results of the data. Following are the proposed primary sheets which can be used for data collection. Therefore, from the above analysis, it is evident that to prove theoretical concepts, the quality and method of collecting data is very important. Exports of Asian Countries 20092 Exchange Rates of Currencies of Asian Countries References Oanda. (n.d.) Historical Exchange Rates. [Online] Available from: http://www.oanda.com/currency/historical-rates [Accessed 21 March 2010]. U.S. Census Bureau. (n.d.) U.S. Trade in Goods (Imports, Exports and Balance) by Country. [Online] Available from: http://www.census.gov/foreign-trade/balance/index.html [Accessed 21 March 2010]. Table I: Exports of Countries to United States in Terms of Dollars Chinese export Bangladesh export Pakistani Exports Indian exports Japanese Sri Lanka Exports Turkey exports Jan-09 24,748.00 351.4 243.6 1,830.40 8,288.80 161.7 323.6 Feb-09 18,874.50 313.6 247.9 1,580.70 6,416.60 146 344.9 Mar-09 21,187.70 355.7 237.7 1,771.80 7,062.30 157.1 301.7 Apr-09 21,918.70 313.8 233.7 1,768.80 7,071.00 147.3 236.5 May-09 22,731.50 281.8 270.7 1,611.80 6,164.30 99.5 234.8 Jun-09 23,979.10 294.5 287.5 1,568.90 7,707.70 109.8 257.5 Jul-09 25,691.20 342.4 312.4 1,819.30 8,028.80 139.5 321.4 Aug-09 25,784.70 312.4 279.7 1,647.30 8,377.10 127.9 326.5 Sep-09 27,914.90 329.6 269.1 2,069.80 8,556.90 134.7 310.7 Oct-09 29,520.80 292.8 277.6 1,998.50 9,069.90 123 334.2 Nov-09 27,549.90 230.2 249.7 1,722.90 9,666.40 118.7 314.3 Source: http://www.census.gov/foreign-trade/balance/index.html Table II: Imports of Countries to United States in Terms of Dollars Chinese imports Bangladesh imports Pakistani Imports Indian imports Japanese Imports Sri Lanka imports Turkey imports Jan-09 4,178.10 40 88.5 1,138.40 3,986.70 22.3 479.7 Feb-09 4,678.40 31.2 93.9 1,044.80 4,210.60 9.8 493.6 Mar-09 5,569.90 46.5 142.6 1,126.40 4,456.10 51.2 422.2 Apr-09 5,164.90 43.8 158.3 1,270.50 3,853.20 11 626.3 May-09 5,247.80 41.2 271.4 1,506.10 4,250.20 18.8 603.5 Jun-09 5,549.20 36.9 138 1,397.70 4,004.00 11.6 705.7 Jul-09 5,274.30 28.7 121.5 1,681.40 4,142.00 11.1 513.2 Aug-09 5,553.10 31.8 109.4 1,666.10 4,039.50 14.6 651.6 Sep-09 5,813.70 37.9 102 1,640.20 4,427.00 28.2 515.1 Oct-09 6,857.40 32.9 117.9 1,505.40 4,646.50 24.7 734.2 Nov-09 7,326.30 30.7 153.6 1,066.70 4,233.50 12.4 525.7 Source: http://www.census.gov/foreign-trade/balance/index.html Table III – a: Daily Exchange Rate of Currencies in Terms of Dollars   Chinese Yuan Bangladesh taka Pakistani Rupee Indian Rupee Japanese Yen Sri Lanka Rupee Turkey 1/1/2009 0.1468 0.01476 0.01275 0.02035 0.01106 0.008975 0.653 1/2/2009 0.1468 0.01478 0.01275 0.02037 0.011035 0.008767 0.653 1/3/2009 0.147 0.01487 0.01274 0.02031 0.010973 0.008794 0.6514 1/4/2009 0.147 0.01478 0.01274 0.02055 0.010894 0.008782 0.6514 1/5/2009 0.147 0.01478 0.01274 0.02055 0.010895 0.008782 0.6514 1/6/2009 0.1466 0.01496 0.0127 0.02043 0.010797 0.00881 0.6528 1/7/2009 0.1465 0.01485 0.0127 0.02036 0.01068 0.008804 0.6582 1/8/2009 0.1466 0.01486 0.01279 0.02033 0.010717 0.008797 0.6543 1/9/2009 0.1465 0.01498 0.01304 0.02013 0.010879 0.008795 0.6431 1/10/2009 0.1465 0.01511 0.01281 0.02031 0.010999 0.008798 0.643 1/11/2009 0.1465 0.01476 0.01281 0.0206 0.011069 0.008793 0.643 1/12/2009 0.1465 0.01476 0.01281 0.02059 0.011071 0.008793 0.643 1/13/2009 0.1465 0.01482 0.01275 0.02034 0.011135 0.008795 0.6328 1/14/2009 0.1465 0.01479 0.0127 0.02023 0.011197 0.008797 0.6271 1/15/2009 0.1465 0.0148 0.01269 0.02025 0.011193 0.008798 0.623 1/16/2009 0.1465 0.0148 0.01268 0.02019 0.011217 0.008792 0.6183 1/17/2009 0.1465 0.01482 0.01267 0.02038 0.011073 0.008794 0.6196 1/18/2009 0.1465 0.01482 0.01267 0.02062 0.011027 0.008871 0.6196 1/19/2009 0.1465 0.01482 0.01267 0.02062 0.011025 0.008871 0.6196 1/20/2009 0.1466 0.01484 0.01259 0.02048 0.011026 0.008791 0.6104 1/21/2009 0.1464 0.01475 0.01263 0.02031 0.011069 0.008791 0.6011 1/22/2009 0.1464 0.01483 0.01254 0.02022 0.011171 0.008792 0.602 1/23/2009 0.1465 0.01486 0.01257 0.02024 0.011239 0.008806 0.6056 1/24/2009 0.1464 0.01481 0.01267 0.02022 0.011266 0.008787 0.5985 1/25/2009 0.1464 0.01495 0.01267 0.02033 0.01127 0.008849 0.5985 1/26/2009 0.1464 0.01495 0.01267 0.02033 0.01127 0.008849 0.5985 1/27/2009 0.1464 0.01483 0.01269 0.02038 0.011235 0.00879 0.6091 1/28/2009 0.1464 0.01491 0.01274 0.02042 0.011209 0.008791 0.6137 1/29/2009 0.1464 0.01481 0.01271 0.0204 0.01119 0.008788 0.6178 1/30/2009 0.1464 0.01474 0.0127 0.02039 0.01111 0.008784 0.6162 1/31/2009 0.1464 0.01471 0.0127 0.02037 0.011153 0.008786 0.6093 2/1/2009 0.1464 0.01485 0.0127 0.02052 0.011126 0.008932 0.6093 2/2/2009 0.1464 0.0148 0.0127 0.02052 0.011126 0.008785 0.6093 2/3/2009 0.1462 0.01478 0.01269 0.0204 0.011166 0.008781 0.6046 2/4/2009 0.1464 0.01484 0.0127 0.02043 0.011182 0.008786 0.6085 2/5/2009 0.1466 0.01487 0.01268 0.02046 0.011188 0.008785 0.6107 2/6/2009 0.1465 0.01483 0.01286 0.02048 0.011122 0.008785 0.6115 2/7/2009 0.1466 0.01478 0.0127 0.02052 0.010951 0.008778 0.616 2/8/2009 0.1466 0.01496 0.0127 0.02071 0.010888 0.008782 0.616 2/9/2009 0.1466 0.01496 0.0127 0.02071 0.010888 0.008782 0.616 2/10/2009 0.1465 0.01481 0.01267 0.02061 0.010921 0.008778 0.6204 2/11/2009 0.1467 0.01475 0.01266 0.02053 0.010972 0.008782 0.6157 2/12/2009 0.1466 0.01482 0.01266 0.02046 0.011078 0.008783 0.6109 2/13/2009 0.1466 0.01481 0.01263 0.02046 0.011083 0.008778 0.6063 2/14/2009 0.1465 0.01484 0.01259 0.02052 0.010949 0.008782 0.608 2/15/2009 0.1464 0.01484 0.01259 0.02072 0.010892 0.008774 0.608 2/16/2009 0.1464 0.01484 0.01259 0.02072 0.010899 0.008774 0.608 2/17/2009 0.1466 0.01482 0.01263 0.02051 0.010904 0.008775 0.6015 2/18/2009 0.1465 0.01479 0.0126 0.0202 0.010854 0.008768 0.5935 2/19/2009 0.1465 0.01482 0.01255 0.02 0.01078 0.008774 0.5897 2/20/2009 0.1465 0.01481 0.01256 0.02003 0.010662 0.008768 0.5929 2/21/2009 0.1465 0.01502 0.01254 0.02001 0.010644 0.008764 0.5867 2/22/2009 0.1465 0.01516 0.01254 0.02013 0.01072 0.00908 0.5867 2/23/2009 0.1465 0.01516 0.01254 0.02013 0.010718 0.00908 0.5867 2/24/2009 0.1465 0.01482 0.01258 0.02008 0.010682 0.008769 0.5923 2/25/2009 0.1464 0.01476 0.01262 0.02001 0.010467 0.008749 0.5911 2/26/2009 0.1465 0.01485 0.01256 0.02003 0.010316 0.008721 0.5923 2/27/2009 0.1465 0.01479 0.01257 0.01987 0.010211 0.008695 0.5924 2/28/2009 0.1464 0.01479 0.01258 0.01961 0.01023 0.00876 0.5892 3/1/2009 0.1464 0.01482 0.01258 0.01962 0.010252 0.00876 0.5892 3/2/2009 0.1464 0.01482 0.01258 0.01962 0.010253 0.00876 0.5892 3/3/2009 0.1463 0.01491 0.01257 0.01929 0.010265 0.008763 0.5797 3/4/2009 0.1464 0.01485 0.01253 0.01924 0.010229 0.008763 0.579 3/5/2009 0.1464 0.01482 0.01253 0.01932 0.010113 0.008763 0.5788 3/6/2009 0.1464 0.01484 0.01252 0.01933 0.010097 0.00877 0.5707 3/7/2009 0.1464 0.0148 0.0124 0.01937 0.010245 0.008761 0.56 3/8/2009 0.1464 0.01478 0.0124 0.01948 0.010183 0.008755 0.56 3/9/2009 0.1464 0.01478 0.0124 0.01948 0.010182 0.008755 0.56 3/10/2009 0.1464 0.01483 0.01248 0.01935 0.010146 0.00876 0.5551 3/11/2009 0.1464 0.01484 0.01253 0.01936 0.010139 0.008755 0.5635 3/12/2009 0.1464 0.01481 0.0125 0.01925 0.010174 0.008759 0.5733 3/13/2009 0.1464 0.01493 0.0125 0.01906 0.01031 0.00875 0.5783 3/14/2009 0.1465 0.01493 0.0125 0.01941 0.010195 0.008753 0.5869 3/15/2009 0.1465 0.01487 0.0125 0.01925 0.010213 0.008949 0.5869 3/16/2009 0.1465 0.01487 0.0125 0.01925 0.010213 0.008949 0.5869 3/17/2009 0.1464 0.01496 0.01248 0.01925 0.010181 0.008949 0.5902 3/18/2009 0.1465 0.01478 0.01251 0.01918 0.01015 0.008766 0.5876 3/19/2009 0.1465 0.0148 0.01248 0.01918 0.010174 0.008766 0.5871 3/20/2009 0.1467 0.01495 0.01247 0.01945 0.010483 0.008815 0.5892 3/21/2009 0.1467 0.01481 0.0125 0.0195 0.010523 0.008781 0.5901 3/22/2009 0.1467 0.01481 0.0125 0.01953 0.010428 0.00879 0.5901 3/23/2009 0.1467 0.01481 0.0125 0.01953 0.010429 0.00879 0.5901 3/24/2009 0.1465 0.01492 0.01248 0.01947 0.010374 0.00878 0.5995 3/25/2009 0.1466 0.01486 0.01249 0.01947 0.010219 0.008778 0.6043 3/26/2009 0.1466 0.01474 0.01249 0.01936 0.010234 0.008773 0.6019 3/27/2009 0.1466 0.01481 0.0125 0.01948 0.0102 0.008768 0.6038 3/28/2009 0.1466 0.01487 0.01249 0.01946 0.010182 0.008707 0.6001 3/29/2009 0.1466 0.01492 0.01249 0.01945 0.010223 0.008703 0.6001 3/30/2009 0.1466 0.01492 0.01249 0.01945 0.010223 0.008703 0.5977 3/31/2009 0.1465 0.01479 0.01248 0.01932 0.010281 0.00869 0.5894 4/1/2009 0.1465 0.01479 0.01248 0.01972 0.010141 0.008648 0.5986 4/2/2009 0.1465 0.01474 0.01245 0.01946 0.010121 0.00864 0.609 4/3/2009 0.1465 0.01478 0.01245 0.01964 0.010093 0.008632 0.6211 4/4/2009 0.1465 0.01484 0.01245 0.01981 0.010021 0.008628 0.6286 4/5/2009 0.1465 0.01484 0.01245 0.01993 0.009974 0.008628 0.6286 4/6/2009 0.1465 0.01484 0.01245 0.01993 0.009975 0.008628 0.6286 4/7/2009 0.1465 0.01478 0.01257 0.0199 0.009921 0.008643 0.6342 4/8/2009 0.1465 0.0147 0.01251 0.01988 0.009949 0.008646 0.6245 4/9/2009 0.1465 0.01478 0.01248 0.01976 0.009994 0.008648 0.6259 4/10/2009 0.1465 0.01478 0.01249 0.01987 0.009993 0.008648 0.636 4/11/2009 0.1465 0.0146 0.01247 0.02014 0.009963 0.008661 0.6375 4/12/2009 0.1465 0.0146 0.01247 0.02016 0.00998 0.008661 0.6375 4/13/2009 0.1465 0.0146 0.01247 0.02016 0.00998 0.008661 0.6375 4/14/2009 0.1465 0.0146 0.01247 0.02004 0.009965 0.008661 0.6352 4/15/2009 0.1466 0.01482 0.01247 0.02005 0.010037 0.008646 0.6327 4/16/2009 0.1466 0.01477 0.01246 0.02004 0.010105 0.008647 0.6256 4/17/2009 0.1466 0.01477 0.01247 0.02012 0.01009 0.008648 0.6238 4/18/2009 0.1466 0.01488 0.0125 0.02005 0.010067 0.008636 0.6211 4/19/2009 0.1466 0.01488 0.0125 0.02016 0.010089 0.008768 0.6211 4/20/2009 0.1466 0.01488 0.0125 0.02016 0.01009 0.008768 0.6211 4/21/2009 0.1466 0.01481 0.01245 0.0199 0.010133 0.008566 0.6108 4/22/2009 0.1467 0.01477 0.01246 0.01976 0.010182 0.008428 0.6059 4/23/2009 0.1466 0.01478 0.01247 0.01977 0.010182 0.008366 0.6096 4/24/2009 0.1466 0.01482 0.01246 0.01982 0.010202 0.008346 0.6102 4/25/2009 0.1467 0.01483 0.0125 0.01995 0.010279 0.008329 0.6181 4/26/2009 0.1467 0.0148 0.0125 0.02012 0.010297 0.008455 0.6181 4/27/2009 0.1467 0.0148 0.0125 0.02019 0.010297 0.008326 0.6181 4/28/2009 0.1467 0.0148 0.0125 0.01994 0.01034 0.008333 0.6154 4/29/2009 0.1467 0.01479 0.01253 0.01975 0.010381 0.008342 0.6138 4/30/2009 0.1467 0.01484 0.0125 0.01988 0.010324 0.008343 0.6252 5/1/2009 0.1468 0.01477 0.0125 0.02009 0.01021 0.008337 0.6283 5/2/2009 0.1469 0.01475 0.01256 0.02004 0.010091 0.008351 0.628 5/3/2009 0.1469 0.01475 0.01256 0.02017 0.01009 0.008351 0.628 5/4/2009 0.1469 0.01475 0.01256 0.02017 0.01009 0.008351 0.628 5/5/2009 0.1468 0.01478 0.01249 0.0201 0.01007 0.008337 0.6336 5/6/2009 0.1469 0.01487 0.01247 0.02023 0.010115 0.008341 0.6397 5/7/2009 0.1468 0.01477 0.01251 0.0202 0.010155 0.008456 0.6385 5/8/2009 0.1468 0.01477 0.01248 0.02031 0.010102 0.008537 0.6438 5/9/2009 0.1468 0.01482 0.01248 0.02031 0.010097 0.008542 0.645 5/10/2009 0.1468 0.01489 0.01248 0.02053 0.010161 0.008538 0.645 5/11/2009 0.1468 0.01489 0.01248 0.02053 0.01016 0.008538 0.645 5/12/2009 0.1468 0.01478 0.01252 0.02027 0.010203 0.008548 0.6434 5/13/2009 0.1468 0.01476 0.01246 0.0202 0.010299 0.008528 0.6399 5/14/2009 0.1468 0.01479 0.01244 0.02014 0.010408 0.008503 0.6398 5/15/2009 0.1468 0.01478 0.01245 0.02004 0.01047 0.008502 0.6362 5/16/2009 0.1467 0.01481 0.01245 0.02015 0.010476 0.008499 0.6389 5/17/2009 0.1467 0.01478 0.01245 0.02034 0.010509 0.008494 0.6389 5/18/2009 0.1467 0.01478 0.01245 0.02034 0.010512 0.008494 0.6389 5/19/2009 0.1467 0.01475 0.01246 0.02061 0.010473 0.008697 0.6425 5/20/2009 0.1467 0.01477 0.01239 0.02092 0.010387 0.008701 0.6511 5/21/2009 0.1467 0.01476 0.01244 0.021 0.010462 0.008701 0.654 5/22/2009 0.1467 0.01489 0.01244 0.02107 0.010569 0.008717 0.6505 5/23/2009 0.1467 0.01478 0.01247 0.02119 0.010607 0.008717 0.6505 5/24/2009 0.1467 0.01478 0.01247 0.02145 0.010557 0.008717 0.6505 5/25/2009 0.1467 0.01478 0.01247 0.02145 0.010557 0.008717 0.6505 5/26/2009 0.1468 0.01479 0.01247 0.0212 0.010544 0.008712 0.6505 5/27/2009 0.1466 0.01478 0.01247 0.02103 0.010546 0.008713 0.6478 5/28/2009 0.1466 0.01475 0.01246 0.02099 0.010502 0.008712 0.6474 5/29/2009 0.1467 0.01476 0.01243 0.02095 0.010367 0.008712 0.6449 5/30/2009 0.1467 0.01482 0.01241 0.02119 0.010431 0.008713 0.6488 5/31/2009 0.1467 0.01482 0.01241 0.02142 0.010494 0.008713 0.6488 6/1/2009 0.1467 0.01482 0.01241 0.02142 0.010496 0.008713 0.6488 6/2/2009 0.1467 0.01482 0.01237 0.02131 0.010476 0.008718 0.6562 6/3/2009 0.1466 0.01478 0.01237 0.02126 0.010408 0.008716 0.6567 6/4/2009 0.1467 0.01477 0.01242 0.02132 0.010428 0.008714 0.6535 6/5/2009 0.1466 0.01477 0.01241 0.0212 0.01038 0.008712 0.6495 6/6/2009 0.1466 0.01481 0.01242 0.02125 0.010283 0.008712 0.6506 6/7/2009 0.1466 0.01461 0.01242 0.02132 0.010141 0.008711 0.6566 6/8/2009 0.1466 0.01461 0.01242 0.02132 0.010141 0.008711 0.6566 6/9/2009 0.1465 0.01477 0.01241 0.02115 0.010153 0.008714 0.6432 6/10/2009 0.1465 0.01477 0.0124 0.02096 0.010204 0.008713 0.6445 6/11/2009 0.1466 0.01477 0.01239 0.021 0.010226 0.008714 0.6479 6/12/2009 0.1465 0.01475 0.01239 0.02092 0.010212 0.008714 0.6493 6/13/2009 0.1466 0.0148 0.0124 0.02091 0.010204 0.008713 0.6524 6/14/2009 0.1466 0.0148 0.0124 0.02105 0.010166 0.008713 0.6524 6/15/2009 0.1466 0.0148 0.0124 0.02105 0.010167 0.008713 0.6524 6/16/2009 0.1465 0.01471 0.0124 0.0208 0.010187 0.008711 0.6469 6/17/2009 0.1465 0.01477 0.01238 0.02077 0.010329 0.008712 0.6466 6/18/2009 0.1465 0.01476 0.01237 0.02072 0.010396 0.00872 0.6429 6/19/2009 0.1465 0.01481 0.01238 0.02064 0.010418 0.008779 0.6424 6/20/2009 0.1465 0.0148 0.01238 0.02064 0.010353 0.008713 0.645 6/21/2009 0.1465 0.01487 0.01238 0.02082 0.010393 0.008707 0.6546 6/22/2009 0.1465 0.01487 0.01238 0.02082 0.010393 0.008707 0.6546 6/23/2009 0.1465 0.01477 0.01237 0.02052 0.010419 0.008713 0.6397 6/24/2009 0.1465 0.01477 0.0124 0.02042 0.010486 0.008716 0.6364 6/25/2009 0.1465 0.01484 0.01236 0.02052 0.010484 0.008715 0.6423 6/26/2009 0.1465 0.01475 0.01236 0.0205 0.010405 0.008714 0.6445 6/27/2009 0.1465 0.01485 0.01232 0.02057 0.01046 0.008711 0.6501 6/28/2009 0.1465 0.01476 0.01232 0.0208 0.010511 0.008707 0.6572 6/29/2009 0.1465 0.01476 0.01232 0.0208 0.01051 0.008707 0.6572 6/30/2009 0.1465 0.01477 0.01233 0.02068 0.010468 0.008713 0.6506 7/1/2009 0.1466 0.0148 0.01232 0.02073 0.010414 0.008711 0.6518 7/2/2009 0.1466 0.01476 0.01241 0.02077 0.010348 0.008714 0.6545 7/3/2009 0.1466 0.01479 0.01235 0.0208 0.010375 0.008711 0.6537 7/4/2009 0.1466 0.01476 0.01235 0.02079 0.010423 0.008713 0.6521 7/5/2009 0.1466 0.01473 0.01227 0.02098 0.010418 0.008716 0.6585 7/6/2009 0.1466 0.01476 0.01228 0.02098 0.010417 0.008709 0.6585 7/7/2009 0.1465 0.01476 0.01235 0.02068 0.010487 0.008714 0.6475 7/8/2009 0.1466 0.01473 0.01235 0.02055 0.010509 0.008713 0.6482 7/9/2009 0.1465 0.01476 0.0123 0.02042 0.01064 0.008713 0.6426 7/10/2009 0.1466 0.01474 0.01235 0.02041 0.010751 0.008715 0.6464 7/11/2009 0.1466 0.0148 0.01233 0.02044 0.010791 0.008713 0.645 7/12/2009 0.1466 0.01483 0.01225 0.02055 0.010808 0.008715 0.6486 7/13/2009 0.1464 0.01453 0.01211 0.02055 0.010808 0.008752 0.648 7/14/2009 0.1466 0.01479 0.01222 0.02047 0.010804 0.008714 0.645 7/15/2009 0.1466 0.01478 0.01222 0.0204 0.01074 0.008712 0.6483 7/16/2009 0.1466 0.01475 0.01224 0.02051 0.010671 0.008718 0.6527 7/17/2009 0.1466 0.01478 0.01223 0.02055 0.010653 0.008716 0.6545 7/18/2009 0.1466 0.01478 0.01223 0.02055 0.010655 0.008716 0.6545 7/19/2009 0.1466 0.01483 0.01223 0.02076 0.01062 0.008715 0.6621 7/20/2009 0.1466 0.01483 0.01223 0.02076 0.01062 0.008715 0.6621 7/21/2009 0.1466 0.01475 0.0123 0.02067 0.010587 0.008714 0.6627 7/22/2009 0.1466 0.01475 0.01222 0.02067 0.010646 0.00871 0.664 7/23/2009 0.1466 0.01475 0.01222 0.02062 0.010687 0.008714 0.6683 7/24/2009 0.1466 0.01476 0.0122 0.02066 0.010596 0.008709 0.6731 7/25/2009 0.1466 0.01475 0.01219 0.02071 0.010546 0.008721 0.6738 7/26/2009 0.1466 0.01476 0.01219 0.02091 0.010554 0.008708 0.6798 7/27/2009 0.1466 0.01476 0.01219 0.02091 0.010554 0.008708 0.6798 7/28/2009 0.1466 0.01477 0.01213 0.02076 0.010526 0.008715 0.6765 7/29/2009 0.1466 0.01477 0.01208 0.02072 0.010548 0.008718 0.6777 7/30/2009 0.1466 0.01474 0.01207 0.02064 0.010564 0.008714 0.6713 7/31/2009 0.1466 0.01476 0.01209 0.02061 0.0105 0.008713 0.6752 8/1/2009 0.1464 0.01458 0.01208 0.02078 0.010496 0.008713 0.6845 8/2/2009 0.147 0.01458 0.01208 0.02104 0.010567 0.008713 0.6845 8/3/2009 0.1464 0.01453 0.01208 0.02104 0.010566 0.008713 0.6807 8/4/2009 0.1466 0.01477 0.0121 0.021 0.010533 0.008713 0.6841 8/5/2009 0.1466 0.01475 0.01208 0.02104 0.010514 0.008713 0.685 8/6/2009 0.1466 0.01478 0.01206 0.021 0.010515 0.008753 0.6838 8/7/2009 0.1466 0.01478 0.0121 0.02097 0.010495 0.008714 0.6797 8/8/2009 0.1466 0.01478 0.01216 0.02092 0.010411 0.008711 0.6786 8/9/2009 0.1466 0.0146 0.01216 0.02111 0.010255 0.008708 0.6885 8/10/2009 0.1467 0.01453 0.01216 0.02111 0.010254 0.008712 0.6833 8/11/2009 0.1465 0.01476 0.01212 0.02096 0.010282 0.008713 0.6781 8/12/2009 0.1465 0.01486 0.0121 0.02083 0.01036 0.008713 0.6689 8/13/2009 0.1465 0.01481 0.0121 0.02073 0.010435 0.008713 0.6668 8/14/2009 0.1465 0.01481 0.01217 0.02078 0.010431 0.008717 0.6762 8/15/2009 0.1466 0.01481 0.01216 0.02074 0.010523 0.008709 0.6733 8/16/2009 0.1466 0.01472 0.01213 0.02087 0.010539 0.008707 0.6761 8/17/2009 0.1463 0.01458 0.01216 0.02087 0.01054 0.008707 0.6711 8/18/2009 0.1465 0.01485 0.01213 0.02057 0.010578 0.008718 0.6703 8/19/2009 0.1465 0.01475 0.01213 0.02047 0.010548 0.008725 0.6741 8/20/2009 0.1465 0.01487 0.01217 0.02046 0.010605 0.008726 0.6721 8/21/2009 0.1466 0.01489 0.01214 0.02054 0.010615 0.008723 0.6771 8/22/2009 0.1466 0.01479 0.01211 0.02058 0.010637 0.008719 0.679 8/23/2009 0.1466 0.01476 0.01211 0.02079 0.010601 0.008717 0.6799 8/24/2009 0.1466 0.01476 0.01211 0.02079 0.010601 0.008806 0.6799 8/25/2009 0.1466 0.01479 0.01211 0.02066 0.010563 0.008721 0.6784 8/26/2009 0.1466 0.01473 0.0121 0.02053 0.010615 0.008718 0.6771 8/27/2009 0.1466 0.01476 0.01212 0.02046 0.01062 0.008725 0.6718 8/28/2009 0.1466 0.01474 0.01212 0.02045 0.010668 0.008721 0.6716 8/29/2009 0.1466 0.01484 0.0121 0.02052 0.010674 0.008721 0.6743 8/30/2009 0.1466 0.01485 0.0121 0.0207 0.010696 0.008873 0.6742 8/31/2009 0.1466 0.01485 0.01208 0.0207 0.010698 0.008901 0.6742 9/1/2009 0.1466 0.01475 0.01207 0.02061 0.010757 0.008721 0.6678 9/2/2009 0.1466 0.01483 0.01209 0.02045 0.010745 0.008722 0.6636 9/3/2009 0.1466 0.01479 0.01214 0.02041 0.010798 0.008721 0.6608 9/4/2009 0.1466 0.01475 0.01211 0.02046 0.010824 0.008722 0.6637 9/5/2009 0.1466 0.01477 0.01211 0.0205 0.010779 0.008723 0.6672 9/6/2009 0.1466 0.01478 0.01211 0.0207 0.010758 0.008911 0.67 9/7/2009 0.1469 0.01478 0.01211 0.0207 0.010758 0.008911 0.6732 9/8/2009 0.1466 0.01479 0.01212 0.02059 0.010747 0.008722 0.6717 9/9/2009 0.1467 0.01475 0.01209 0.0206 0.010812 0.008719 0.6737 9/10/2009 0.1467 0.01472 0.0121 0.02059 0.01084 0.00872 0.6714 9/11/2009 0.1467 0.01477 0.01211 0.02059 0.010872 0.00872 0.6663 9/12/2009 0.1467 0.01476 0.01211 0.02058 0.010985 0.00872 0.6691 9/13/2009 0.1473 0.01453 0.01212 0.02076 0.011029 0.008709 0.6745 9/14/2009 0.1464 0.01453 0.01211 0.02076 0.011032 0.008709 0.67 9/15/2009 0.1467 0.01479 0.01211 0.02055 0.011031 0.00872 0.6674 9/16/2009 0.1466 0.01475 0.01213 0.02049 0.010979 0.008718 0.6735 9/17/2009 0.1467 0.01475 0.01213 0.02065 0.011018 0.008719 0.6784 9/18/2009 0.1467 0.01476 0.01211 0.02075 0.010983 0.008719 0.681 9/19/2009 0.1467 0.01476 0.01209 0.02071 0.010959 0.00872 0.6774 9/20/2009 0.1467 0.01475 0.01206 0.02086 0.01096 0.008718 0.6762 9/21/2009 0.1467 0.01475 0.01209 0.02086 0.01096 0.008719 0.6762 9/22/2009 0.1466 0.01484 0.01211 0.02072 0.010883 0.008724 0.6719 9/23/2009 0.1467 0.01478 0.01212 0.02076 0.010931 0.008719 0.6757 9/24/2009 0.1467 0.01478 0.01215 0.02082 0.01098 0.00872 0.6758 9/25/2009 0.1467 0.01483 0.01212 0.02077 0.010987 0.00872 0.6744 9/26/2009 0.1467 0.01484 0.01208 0.02074 0.011059 0.008717 0.6728 9/27/2009 0.1467 0.01484 0.01208 0.02088 0.011159 0.008716 0.6746 9/28/2009 0.1467 0.01484 0.01208 0.02088 0.01116 0.008717 0.6746 9/29/2009 0.1467 0.01485 0.01208 0.02072 0.011191 0.008721 0.6706 9/30/2009 0.1467 0.01474 0.01204 0.02076 0.011115 0.008721 0.6712 10/1/2009 0.1467 0.01474 0.01205 0.02085 0.011142 0.008719 0.6738 10/2/2009 0.1467 0.01476 0.01206 0.02091 0.011133 0.008721 0.67 10/3/2009 0.1467 0.01476 0.01206 0.02092 0.01118 0.008721 0.67 10/4/2009 0.1467 0.01485 0.01206 0.02104 0.011142 0.008927 0.6703 10/5/2009 0.1467 0.01485 0.01206 0.02105 0.011144 0.008928 0.6703 10/6/2009 0.1467 0.01474 0.01203 0.02104 0.011146 0.00872 0.6738 10/7/2009 0.1467 0.01474 0.01202 0.02115 0.011228 0.008721 0.6812 10/8/2009 0.1467 0.01483 0.01202 0.02143 0.011274 0.008719 0.6809 10/9/2009 0.1467 0.01474 0.01205 0.0216 0.011312 0.00872 0.6847 10/10/2009 0.1467 0.01477 0.01203 0.0216 0.011214 0.00872 0.6831 10/11/2009 0.1467 0.01476 0.01203 0.02173 0.011149 0.008716 0.6839 10/12/2009 0.1467 0.01475 0.01203 0.02173 0.011151 0.008875 0.6839 10/13/2009 0.1467 0.01474 0.01203 0.02158 0.011113 0.008721 0.6845 10/14/2009 0.1467 0.01476 0.01203 0.02159 0.011139 0.008721 0.6863 10/15/2009 0.1467 0.01471 0.01204 0.0217 0.011189 0.008719 0.6918 10/16/2009 0.1467 0.01478 0.01204 0.02178 0.01112 0.00872 0.6929 10/17/2009 0.1467 0.01476 0.01204 0.02165 0.011004 0.008719 0.686 10/18/2009 0.1467 0.01476 0.01204 0.02177 0.011009 0.008716 0.6856 10/19/2009 0.1467 0.01476 0.01204 0.02177 0.011009 0.008715 0.6856 10/20/2009 0.1467 0.01471 0.01203 0.02165 0.011017 0.008719 0.6871 10/21/2009 0.1467 0.01472 0.01203 0.02164 0.01105 0.008721 0.6865 10/22/2009 0.1467 0.01472 0.01203 0.02153 0.011007 0.008719 0.6841 10/23/2009 0.1467 0.01483 0.01203 0.02144 0.01096 0.008719 0.6816 10/24/2009 0.1467 0.01483 0.01204 0.02149 0.010902 0.008719 0.6822 10/25/2009 0.1464 0.01458 0.01205 0.02149 0.010866 0.008713 0.6822 10/26/2009 0.1468 0.01458 0.01203 0.02151 0.01087 0.008713 0.6854 10/27/2009 0.1467 0.01475 0.01202 0.02146 0.010875 0.008719 0.6763 10/28/2009 0.1466 0.0148 0.01202 0.02127 0.010866 0.008719 0.6708 10/29/2009 0.1467 0.01477 0.01202 0.02117 0.010967 0.00872 0.6664 10/30/2009 0.1466 0.01477 0.01201 0.02112 0.011006 0.008718 0.6685 10/31/2009 0.1467 0.01476 0.01197 0.02127 0.010996 0.008721 0.669 11/1/2009 0.1467 0.01468 0.012 0.02131 0.010996 0.008717 0.6672 11/2/2009 0.1465 0.01453 0.012 0.02129 0.011108 0.008713 0.6656 11/3/2009 0.1467 0.01472 0.01197 0.02126 0.011103 0.008721 0.6658 11/4/2009 0.1467 0.01478 0.01197 0.02118 0.011081 0.00872 0.6638 11/5/2009 0.1467 0.01493 0.01197 0.02124 0.011039 0.008719 0.6692 11/6/2009 0.1467 0.01478 0.01197 0.02127 0.011051 0.008719 0.6715 11/7/2009 0.1467 0.01479 0.01202 0.02135 0.011062 0.008719 0.6743 11/8/2009 0.1465 0.01453 0.01202 0.02135 0.011131 0.008709 0.6732 11/9/2009 0.1465 0.01453 0.01202 0.02135 0.01113 0.008709 0.6756 11/10/2009 0.1467 0.01472 0.01202 0.02154 0.011114 0.00873 0.6787 11/11/2009 0.1467 0.01478 0.01203 0.02153 0.011124 0.008749 0.6784 11/12/2009 0.1467 0.01472 0.01202 0.02154 0.01114 0.008745 0.6795 11/13/2009 0.1467 0.01478 0.01199 0.02152 0.011112 0.008746 0.6765 11/14/2009 0.1467 0.0148 0.012 0.02153 0.011114 0.008748 0.6756 11/15/2009 0.1465 0.01453 0.012 0.02165 0.011162 0.008736 0.6764 11/16/2009 0.1465 0.01453 0.012 0.02182 0.011162 0.008736 0.6782 11/17/2009 0.1467 0.01479 0.012 0.02173 0.011179 0.008753 0.6783 11/18/2009 0.1467 0.01475 0.01199 0.02168 0.011219 0.008762 0.676 11/19/2009 0.1467 0.0148 0.01203 0.02165 0.011206 0.008763 0.676 11/20/2009 0.1467 0.01474 0.01202 0.0215 0.01123 0.008762 0.672 11/21/2009 0.1467 0.01474 0.01202 0.02145 0.011244 0.008762 0.672 11/22/2009 0.1467 0.01479 0.01199 0.02167 0.011256 0.008764 0.6683 11/23/2009 0.1465 0.01453 0.01197 0.02146 0.011257 0.008754 0.6682 11/24/2009 0.1466 0.01475 0.01199 0.02156 0.011248 0.008746 0.6693 11/25/2009 0.1467 0.0148 0.01202 0.02153 0.011274 0.00875 0.6679 11/26/2009 0.1467 0.01475 0.01201 0.02161 0.011365 0.008748 0.6712 11/27/2009 0.1467 0.01476 0.01198 0.02156 0.011515 0.008746 0.6614 11/28/2009 0.1467 0.0148 0.01199 0.02142 0.011577 0.008738 0.6528 11/29/2009 0.1467 0.01486 0.01198 0.02167 0.011562 0.008735 0.6572 11/30/2009 0.1465 0.01453 0.01198 0.02149 0.011553 0.00873 0.6602 Source: http://www.oanda.com/currency/historical-rates Table III – b: Monthly Exchange Rate of Currencies in Terms of Dollars   China Yuan Bangladesh Taka Pakistani Rupee Indian Rupee Japanese Yen Sri Lanka Turkey Jan-09 0.14655 0.01484 0.01271 0.02037 0.01107 0.00881 0.62704 Feb-09 0.14649 0.01485 0.01264 0.02034 0.01087 0.00880 0.60379 Mar-09 0.14650 0.01485 0.01250 0.01938 0.01024 0.00878 0.58447 Apr-09 0.14657 0.01478 0.01248 0.01992 0.01011 0.00857 0.62138 May-09 0.14676 0.01479 0.01247 0.02060 0.01035 0.00856 0.64247 Jun-09 0.14655 0.01478 0.01238 0.02093 0.01035 0.00871 0.64937 Jul-09 0.14659 0.01476 0.01224 0.02066 0.01059 0.00871 0.65925 Aug-09 0.14657 0.01475 0.01212 0.02077 0.01053 0.00873 0.67733 Sep-09 0.14668 0.01477 0.01210 0.02067 0.01093 0.00874 0.67190 Oct-09 0.14669 0.01475 0.01203 0.02142 0.01107 0.00874 0.67996 Nov-09 0.14665 0.01472 0.01200 0.02148 0.01120 0.00874 0.67062 Source: http://www.oanda.com/currency/historical-rates Table IV - Correlation between Exports/Imports and Exchange Rate of Currencies   Correlation Nature of Relation Chinese export 0.589866335 Positive correlation Chinese imports 0.482938625 Positive correlation Bangladesh export 0.641000152 Positive correlation Bangladesh imports 0.508088332 Positive correlation Pakistani Exports -0.457674039 Negative correlation Pakistani Imports 0.052571336 Positive correlation Indian exports 0.117521315 Positive correlation Indian imports 0.296181959 Positive correlation Japanese 0.675172585 Positive correlation Japanese Imports 0.37034673 Positive correlation Sri Lanka Exports 0.483374473 Positive correlation Sri Lanka imports 0.289187939 Positive correlation Turkey exports 0.170169099 Positive correlation Turkey imports 0.560327929 Positive correlation Graph I: Exports and Imports of Asian Countries against Exchange Rates - 2009 Graph II: Exports and Imports of China vs. Exchange Rates - 2009 Graph III: Exports and Imports of Bangladesh vs. Exchange Rates - 2009 Graph IV: Exports and Imports of Pakistan vs. Exchange Rates – 2009 Graph V: Exports and Imports of India vs. Exchange Rates - 2009 Graph VI: Exports and Imports of Japan vs. Exchange Rates - 2009 Graph VII: Exports and Imports of Sri Lanka vs. Exchange Rates - 2009 Graph VIII: Exports and Imports of Turkey vs. Exchange Rates - 2009 Read More