Price adjusted rates of exchange

38. The Committee agreed to keep the question of conversion rates under review, including the use of price adjusted rates of exchange (PAREs).

The Rio Group was pleased that the Committee on Contributions had agreed on criteria for deciding when market exchange rates (MERs) should be replaced with other exchange rates and that it had decided that relative price adjusted rates of exchange (PAREs) were, in general, the most technically sound method of adjusting MERs.

Second, conversion rates based on MERs should be used for the 2007 2009 scale, except where excessive fluctuations justified the use of PAREs or other appropriate rates.

(vi) Use of market exchange rates, except where this causes excessive fluctuations or distortions in the income of some Member States, when price adjusted rates of exchange or other appropriate conversion rates are to be employed

Miscellaneous income currency exchange adjustments

Lastly, ASEAN agreed that future scales should be carried to three decimal places and that market exchange rates should be used except where price adjusted rates of exchange (PARE) or other conversion rates were more appropriate.

d. Price adjusted rates of exchange or other appropriate conversion rates where the use of rates consistent with the criteria in subparagraphs (iii) a to c above would cause excessive fluctuations or distortions in the income of some Member States

At its sixty fourth session, the Committee decided to consider the relative PARE concept further at its sixty fifth session.

Professional staff salaries are adjusted for euro dollar fluctuations by the monthly post adjustment factor.

(a) Price and wage adjustment.

For calculating national incomes in United States dollars, conversion rates should be based on MERs, except where that would cause excessive fluctuations and distortions in the income of some Member States, in which case PAREs or other appropriate conversion rates should be employed.

The Committee concluded that relative PARE was in general the most technically sound method of adjusting MERs, when distortions were identified, for the purposes of preparing the scale.

Real exchange rate adjustments inside a monetary union, or among countries with fixed exchange rates, can take place through inflation differentials. The real value of the Chinese renminbi, for example, has appreciated considerably relative to the US dollar, despite limited nominal exchange rate changes, because China s domestic prices have risen faster than have prices in the United States.

It had concluded that relative PARE was in general the most technically sound method of adjusting MERs, although other solutions might be needed in specific cases.

At the same time, while relative PARE would henceforth be the default method used by the Committee in cases where MERs were not appropriate, the Committee recognized that other solutions might be needed in specific cases.

(viii) Market exchange rates to be used for the purpose of the scale, except where this causes excessive fluctuations or distortions in the income of some Member States, when price adjusted rates of exchange or other appropriate conversion rates, such as uniform exchange rates, in accordance with the criteria contained in paragraph 3 (b) of General Assembly resolution 46 221 B, are to be employed

(c) Conversion rates based on market exchange rates, except where that would cause excessive fluctuations and distortions in the income of some Member States, when price adjusted rates of exchange or other appropriate conversion rates should be employed, taking due account of its resolution 46 221 B

Implicitly, the latter can be seen as due to MERs not adjusting adequately to changes in the relative prices of the country in question vis à vis those of the United States of America.

(vi) Market exchange rates to be used for the purpose of the scale, except where this causes excessive fluctuations or distortions in the income of some Member States, when price adjusted rates of exchange or other appropriate conversion rates, such as uniform exchange rates, in accordance with the criteria contained in paragraph 3 (b) of General Assembly resolution 46 221 B, are to be employed

With regard to the possibility of developing systematic criteria for deciding when MERs should be replaced with PAREs, he took the view that PAREs should be applied only in specific cases involving the correction of other indexes.

Summary of advantages and disadvantages of various methods for adjusting market exchange rates

Adjustment based on exchange rate of 1,780 lire to US 1.00.

Recent price adjustments enable the farmer to obtain a better return from crop sales

(c) Conversion rates based on market exchange rates, except where that would cause excessive fluctuations and distortions in the income of some Member States, when price adjusted rates of exchange or other appropriate conversion rates should be employed, taking due account of General Assembly resolution 46 221 B of 21 December 1991

All other exchange adjustments have been recorded as miscellaneous income.

That's true. But it's keyed to the price. Might be a little more, might be a little less.

In the meantime, the Committee recalled its conclusion that market exchange rates should be used for the purposes of the scale, except where that would cause excessive fluctuations or distortions in the income of some Member States, when price adjusted rates of exchange or other appropriate conversion rates should be employed (A 51 11, para. 77).

Thus, the past year s currency alignments have, to some extent, simply brought relative domestic price levels and exchange rates into better balance. But by now, emerging market countries exchange rates, and even more so commodity currencies, have probably overshot on the downside.ampnbsp

Section III of the report mentioned the new idea of relative PAREs.

With regard to recosting, adjustments have to be made to bring the revised appropriations and proposed change in resources to 2006 2007 prices at the applicable exchange rates (see table 6).

Additional income was derived from miscellaneous sources, such as currency exchange adjustments, interest income, inter fund transfers and other adjustments.

The volatility of commodity prices poses a serious risk for the sustainability of growth, and better international coordination is required to reduce the instability of commodity prices and exchange rates.

Additional income was derived from miscellaneous sources, such as currency exchange adjustments, interest income, inter fund transfers and other adjustments.

Criteria and parameters for price adjustments are sometimes indicated in the law, as in the case of official price indices.

In the case of the salaries of Professional staff, while base salaries are not affected by exchange rates, as they are denominated in United States dollars, the post adjustment component moves in response to changes in both cost of living and exchange rates.

67. His delegation supported a gradual phase out of the scheme of limits, and accepted the view that market exchange rates should be used for conversion, except where that would cause excessive fluctuation or distortion in the income of some Member States, in which case price adjusted rates of exchange should be used.

The date of foreign exchange applicable will be specified by the Customs General Administration.

This represents a yearly real rate of return of 4.1 per cent for the same period, after adjustment based on the United States consumer price index, and compares favourably with the 3.5 per cent long term real rate of return assumed in the actuarial calculation.

The overall rate of growth of prices of goods and services (in order to adjust the level of the minimum wage and prevent it decreasing in real value).

In the case of the salaries of Professional staff, while base salaries are not affected by exchange rates, as they are denominated in United States dollars, the post adjustment component moves in response to changes in both the cost of living and exchange rates.

The bitter medicine that Germany and the ECB want to impose on the periphery the second option is recessionary deflation fiscal austerity, structural reforms to boost productivity growth and reduce unit labor costs, and real depreciation via price adjustment, as opposed to nominal exchange rate adjustment.

(a) Maintenance of the 1996 1997 resource base, estimated at the prices and exchange rates expected to prevail in 1997

After adjustment by the United States consumer price index, the quot real quot rates of return for the two years under review were 5.9 per cent and 18.9 per cent, respectively.

These are based on promulgated post adjustment multipliers and the latest available information on consumer price indices.