The ratio of U.S. merchandise export prices to manufacturing unit labor costs provides some evidence of margin movements linked to exchange rates that is analogous to the effects I described earlier for foreign exporters. Given the dollar's depreciation since 2002, U.S. exporters' profit margins appear to be increasing, which bodes well for future U.S. exports and the adjustment process.
Central counterparty clearing: CCIL has put in place guaranteed settlement for FX forward transaction effective from the date of contract since December 2009. In case of IRS, CCIL has been providing non-guaranteed settlement since November 2008. It is expected to transit to guaranteed settlement for IRS transactions shortly.