IV Indicators Used in Exchange Rate Assessment
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International Monetary Fund
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Abstract

The objective of Fund-supported adjustment programs is to bring about a viable balance of payments in the medium term. The formulation of exchange rate policies in such programs takes into account the overall stance of domestic and foreign policies, as well as prospective internal and external conditions over the medium term. Such an analysis may bring out the implications of various exchange rate policies, or, conversely, may be used to indicate the exchange rate policy consistent with a given set of assumptions about exogenous developments and the stance of other policies.

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