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Abstract

This paper summarizes major measures taken in the international exchange and trade systems in 1988 and developments in exchange arrangements and the evolution of exchange rates. The exchange arrangements adopted by members since 1973 cover a broad spectrum of degrees of flexibility, from single-currency pegs to a freely floating system. Most countries have adopted arrangements that fall clearly into one or another of the major categories of the present classification system adopted by the IMF in 1982, and countries with dual markets usually have one market that is clearly more important than the other, which allows accurate classification by major market. Changes in IMF members' arrangements for their currencies during this decade have shown a distinct tendency to move toward more flexible arrangements and away from single-currency pegs, continuing a trend that began in the mid-1970s. A qualitative sense of the significance of the trend toward more flexible arrangements can be conveyed by the degree that world trade is affected by countries adopting different arrangements.

© 1989 International Monetary Fund

International Standard Serial Numbers: ISBN 1-55775-127-7

ISSN 0258-7440

ISSN 1015-5112

Price: US$25.00

(US$15.00 for university faculty members and students)

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Contents

  • Preface

  • I. Overview and Major Trends

  • II. Developments in Exchange Systems

    • Choice of Exchange Arrangements

    • Exchange Rate Developments

      • Industrial Countries

      • Developing Countries

      • Multiple Exchange Rates

  • III. Main Developments in Trade and Exchange Controls and Taxes

    • Quantitative Restrictions on Imports

      • Industrial Countries

      • Developing Countries

    • Import Surcharges and Taxation

      • Industrial Countries

      • Developing Countries

    • Other Measures Affecting Import Payments

    • Exports and Export Proceeds

    • Current Invisibles

    • Capital Controls

    • Restrictions Leading to External Payments Arrears

  • IV. Developments in Bilateral Arrangements, Countertrade Practices, and Regional Arrangements

    • Bilateral Payments Arrangements and Countertrade Practices

    • Regional Arrangements

  • Boxes

  • 1. Definitions of Exchange Rate Classifications

  • 2. Examples of Multiple Exchange Practices

  • Tables

  • Chapter

  • II. 1. Exchange Rate Arrangements as of March 31, 1989

    • 2. Discrete Exchange Rate Changes of Pegged Currencies, 1988

    • 3. Changes in “More Flexible” Currencies, December 31, 1987–December 31, 1988

    • 4. Features of Multiple Exchange Rate Systems, 1983–88

  • IV. 5. Organizations Regulating Exchange and Trade: Membership Lists

  • Charts

  • Chapter

  • I. 1. Growth of World Trade and Output, 1971–88

  • II. 2. Exchange Rate Classifications of Developing Countries, 1975–88

    • 3. Single-Currency and Composite Peges, 1982–88

    • 4. Nominal Effective Exchange Rates of Industrial Countries With Independently Floating Exchange Arrangements, 1982–88

    • 5. Real Effective Exchange Rates of Industrial Countries With Independently Floating Arrangements, 1982–88

    • 6. Nominal Effective Exchange Rates of Industrial Countries With Cooperative Arrangements, 1982–88

    • 7. Industrial Countries: Indicators of Exchange Rate Variability and Official Foreign Exchange Market Intervention, 1976–88

    • 8. Developing Countries: Average Nominal Effective Exchange Rates by Regime, 1982–88

    • 9. Developing Countries: Average Real Effective Exchange Rates by Regime, 1982–88

    • 10. Fund Members With Multiple Exchange Rates, 1955–88

    • 11. Changes in Multiple Exchange Rates, 1980–88

  • III. 12. Quantitive Import Controls, 1985–88

    • 13. Voluntary Export Restraints, 1984–88

    • 14. Import Surcharges and Taxation, 1985–88

    • 15. Antidumping Cases Initiated, 1981–88

    • 16. Advance Import Deposits: Developing Countries, 1985–88

    • 17. Other Import Measures: Developing Countries, 1985–88

    • 18. Exports and Export Proceeds: Developing Countries, 1985–88

    • 19. Current Invisibles: Developing Countries, 1985–88

    • 20. Capital Controls, 1985–88

  • Appendix

    • Summary Table. Measures Affecting Members’ Exchange and Trade Systems, 1988

The following symbols have been used throughout this book:

  • … to indicate that data are not available;

  • — to indicate that the figure is zero or less than half the digit shown, or that the item does not exist;

  • –between years or months (e.g., 1988–89 or January-June) to indicate the years or months covered, including the beginning and ending years or months;

  • / between years (e.g., 1988/89) to indicate a crop or fiscal (financial) year.

“Billion” means a thousand million.

Details may not add to totals shown because of rounding.

Preface

This study was prepared by a staff team in the Exchange Restrictions Division of the Exchange and Trade Relations Department of the International Monetary Fund under the direction of Peter J. Quirk, Division Chief. In addition to Martin G. Gilman, Kyung Mo Huh, Pisit Leeahtam, and Joslin M. Landell-Mills, other contributors were Kirsten Fitchett, Virgilio Sandoval, and Conchita Valencia. Secretarial assistance was capably provided by Dorothy Ryan and Barbara Watson. The authors also wish to thank the Editor, Sara Kane of the External Relations Department.

The present study was completed in May 1989 and reflects factual developments up to March 1989 as reported by members for the Fund’s Annual Report on Exchange Arrangements and Exchange Restrictions, 1988. In the latter publication, Kyung Mo Huh, Maria-Elena Ureta, and other staff of the Exchange and Trade Relations Department, assisted by staff in Area Departments of the International Monetary Fund, have played an important role in assembling the basic country material. The paper has also benefited from comments by other members of the staff of the Fund, members of the Executive Board, and national authorities. The opinions expressed are those of the authors and do not necessarily represent the views of the Executive Directors or of other staff members. Similar studies have been published in previous years as Part One of the Annual Report on Exchange Arrangements and Exchange Restrictions.

It should be noted that the term “country” used in this Report does not in all cases refer to a territorial entity that is a state as understood by international law and practice. The term also includes some territorial entities that are not states but for which statistical data are maintained and provided internationally on a separate independent basis.

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