01872cas a2200265 a 4500 AALejournalIMF001155 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451844658 1018-5941 BD-DhAAL BD-DhAAL Becker, Torbjorn. Devaluation Expectations and the Stock Market : The Case of Mexico in 1994/95 / Torbjorn Becker, Anthony Richards, R. Gelos. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Using company-level data, this paper examines the relative stock-market performance of firms with different foreign-exchange exposures around the time of the 1994/95 Mexican crisis. Contrary to what one might have expected given the alleged peso overvaluation, exporting firms outperformed the market beginning in late 1993. Although interest rates fail to show a clear confidence loss in the exchange rate regime, the relative performance of net exporters suggests that expectations of devaluation increased continuously. The methodology presented is relevant beyond the Mexican case: sectoral differences in stock market performance may constitute valuable leading indicators of exchange rate changes in emerging markets. Mode of access: Internet Gelos, R. Richards, Anthony. IMF Working Papers; Working Paper ; No. 2000/028 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/028/001.2000.issue-028-en.xml IMF e-Library