From the point of market performance, over the past year, the two way floating characteristics of RMB exchange rate is outstanding. The elasticity of exchange is expected to be strengthened and the exchange rate is expected to be generally stable.

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.

As regards conversion rates, it was assumed that the same types of rate would be used for the annual recalculation as for the initial scale, that is, in most cases, market exchange rates, with alternative rates when the use of market exchange rates caused distortion.

(i) Exchange rates

This publication includes three types of rates (a) market rates, determined largely by market forces (b) official rates, determined by government authorities and (c) principal rates, where appropriate, including for countries maintaining multiple exchange rate arrangements.

The Committee recommended that conversion rates based on MERs should be used in preparing the scale of assessments for the period 2007 2009, 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.

Currency exchange rate

Currency exchange rate

(f) Exchange rate

(c) Principal rates, for countries maintaining multiple exchange rate arrangements.

a A higher real exchange rate signifies a real depreciation of the local currency.

The Committee recommended that conversion rates based on MERs should be used for the scale of assessments for the period 2007 2009, 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 Exchange Rate Delusion

Loss on exchange

Exchange rate fluctuation

Coverage Report

Rates of exchange 1998 1999

What's the rate of exchange?

37. The Committee noted that MERs were taken from data in the International Financial Statistics Yearbook, a publication of the International Monetary Fund (IMF). 3 The publication includes three types of rates which are referred to for purposes of the scale as MERs

Decreases in exchange rates reflect the strengthening of the United States dollar against the schilling.

Price adjusted rates of exchange

Fluctuation in the exchange rate.

19. Details regarding operational rates at all duty stations are included in schedules 1 and 3.

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.

The operational rates of exchange shall be those established by the Secretary General and communicated to the Executive Director.

China s Forex Follies

B. Exchange rate fluctuations

a December 1997 rate of exchange.

c November 1998 rate of exchange.

Is that a fair rate of exchange?

In the present report, in estimating the effect of exchange rate changes experienced in 2005, the realized exchange rates from January to November 2005, with the November rate applied to December, have been used.

Effect of changes in rates of exchange and inflation

Effects of changes in rates of exchange and inflation

The Committee noted that MERs used for the purposes of the scale are generally annual averages of rates communicated to IMF and published in International Financial Statistics.

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.

In the event that the application of actual exchange rates at the date of the statements would provide a valuation significantly different from the application of United Nations rates of exchange for the last month of the financial period, a footnote will be presented quantifying the difference

In the event that the application of actual exchange rates at the date of the statements would provide a valuation materially different from the application of the Organization s rates of exchange for the last month of the financial period, a footnote will be presented quantifying the difference.

Investments are recorded at cost using commercial historical exchange rates instead of United Nations operational rates of exchange.

Explanations regarding the additional requirements relating to changes in exchange rates and changes in inflation are given in paragraphs 6 to 13 of A 60 572, as are details regarding the assumed and actual rates of exchange (ibid., schedules 4 and 5).

(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

The ratios of debt service to exports and debt stock to GNP also point towards an improved position.

It recalled that the scales for the periods 2001 2003 and 2004 2006 used conversion rates 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 were employed, taking due account of General Assembly resolution 46 221 B.

(n) Reserve for exchange rate fluctuations

Examine rate of change of PCGNI in US dollars in nominal terms between two base periods

Level of PCGNI not in line with economic reality, for example, due to fixed unrealistic exchange rate