FX misalignment in emerging Europe

MARKET VOICE

Several emerging European currencies are significantly undervalued, but how far can these currencies appreciate before impacting competitiveness? Patricia Bartholomew sees room ahead for substantial appreciation in the Romanian, Czech and Hungarian currencies

The challenge facing emerging European transitional economies is to maintain export competitiveness in an environment of real currency appreciation. Loosely, real exchange rate appreciation results from a situation where a country’s

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