Chapter

Stastical Appendix

Author(s):
R. Johnston, and Mark Swinburne
Published Date:
September 1999
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Table A1.Restrictions Maintained by Countries with Article XIV Status, 19971
CountryUnderDescription
Afghanistan, Islamic State of2Article XIVBinding foreign exchange allowances for current invisibles (approved).
Article VIIIMultiple Currency Practices (MCPs) arising from (1) surrender requirements; and (2) limits on sales of foreign exchange at the commercial rate to only five essential commodities; and bilateral payment arrangements (BPAs).
AlbaniaArticle VIIIBilateral payment arrangements.
AngolaArticle XIVBinding foreign exchange allowances for current invisibles: education, travel, remittances, and other transfers. Also, limits on the availability of foreign exchange for payment of imports of goods that have been excluded from the positive list.
Article VIIIExternal payments arrears to commercial banks, foreign exchange budgets or allocation systems, and limits on the availability of foreign exchange for certain nonessential imports.
AzerbaijanArticle XIVBinding foreign exchange allowances for current invisibles: education, medical, remittances, and travel; special requests are dealt with on a case-by-case basis.
Article VIIIAdvance import deposits and restrictions on banks’ access to the BICEX for payments for current international transactions on behalf of resident individuals.
BelarusArticle XIVMCP arising from the tax imposed on the repatriation of profits by nonresidents. Also restrictions on the administrative requirements applied to payments for certain categories of imports.
Article VIIIBinding foreign exchange allowances for current invisibles: remittances.
BhutanArticle XIVForeign exchange budgets or allocation systems arising from restrictions on availability of foreign exchange for certain import payments. Also, binding foreign exchange allowances for current invisibles: travel.
BosniaArticle VIIIBinding foreign exchange allowances for current invisibles: travel as well as on other transfers. Limitations on availability of foreign exchange for merchandise imports, and for payments or transfers for services by physical persons.
BrazilArticle VIIIMCPs arising from applying dual exchange rates for different activities, and the application of various taxes up to 25 percent on the selling side and taxes of 5–7 percent on the buying side on different transactions.
Bulgaria3Article XIVBinding foreign exchange allocation for current invisibles: travel.
Cape VerdeArticle XIVBinding foreign exchange allowances for current invisibles: limitations on family allowance, unilateral transfers, transport, insurance, other commercial services, unilateral transfers of the public sector, including diplomatic and military services and technical assistance.
ColombiaArticle VIIIMCPs resulting from the tax on remittances of profits from direct investments and the withholding tax on inflows of foreign earnings from personal services and transfers, as well as the issuance of tax credit certificates for exports.
Congo, Democratic Rep. of the (formerly Zaire)Article VIIIExternal payments arrears. Binding foreign exchange allowances for current invisibles: remittances. MCP arising from the segmentation of the exchange market, which is expected to disappear as foreign exchange transactions gradually return to the interbank market.
EgyptArticle VIIIBPA. MCP arising from a special exchange rate for liquidation accounts under terminated BPA.
EritreaArticle XIVBinding foreign exchange allowances for current invisibles: education, medical reasons, and travel.
EthiopiaArticle XIVBinding foreign exchange allowances for current invisibles: education, medical, remittances, and travel.
Article VIIIMCP that may arise from the operation of “Dutch” foreign exchange auction system; binding foreign exchange allowances for current invisibles arising from limitations imposed on transferability of balances maintained in the nonconvertible birr accounts of nonresidents; other restrictions arising from the unremunerated bid bond requirement imposed on the purchase of foreign exchange in the exchange auctions.
Iran, Islamic Republic ofArticle VIIIBinding foreign exchange allowances for current invisibles: travel. MCP arising from dual official exchange rates.
Iraq4
Liberia5Article VIIIExternal payments arrears. Foreign exchange budgets. MCP arising from dual market.
LibyaArticle XIVBinding foreign exchange allowances for current invisibles: education and transfers of dividends, technical assistance, and training.
Article VIIIAdvance import deposits. Restrictions on remittances by nonresidents. Foreign exchange allowances for travel. MCP arising from a 10 percent fee on outward foreign exchange transfers.
MauritaniaArticle VIIIExternal payments arrears (approved).
MozambiqueArticle XIVBinding foreign exchange allowances for current invisibles: education, medical expenses, remittances, and travel.
MyanmarArticle VIIIBinding foreign exchange allowances for current invisibles: not specified.

MCP arising from foreign exchange certificates and from sale by exporters of proceeds to private importers at negotiated rates.
NigeriaArticle VIIIBinding foreign exchange allowances for current invisibles: remittances under debt equity conversion scheme and travel.

MCP from dual market and from occasional spread exceeding 2 percent within the interbank market.
Romania6Article VIIILimits imposed on the amount of foreign exchange individuals may purchase for current transactions.
São Tomé and PrincipeArticle XIVBinding foreign exchange allowances for current invisibles: education, medical expenses, travel, on transfers of savings from earnings under technical cooperation agreements with the government; transfer payments of fares, freight, and costs of communication with foreign countries; and suspension of profits by foreign companies established in the country before independence.
Article VIIIMCP arising from spreads of more than 2 percent between the official and the free market rates. Foreign exchange budget or allocation systems.
Somalia7Article XIVMCP (but not clearly stated in report).
Article VIIIExternal payments arrears (not clear if official or private).
SudanArticle VIIIBPA. MCPs arising from spreads of more than 2 percent between the official and the free market rates. External payments arrears (not specified if commercial or official).
Syrian Arab RepublicArticle VIIIAdvance import deposits by public enterprises. BPAs. MCP arising from different market and official rates. Restrictions arising from the requirement that certain imports are to be financed by workers’ remittances and export proceeds.
Article XIVRestriction arising from foreign exchange budgets or allocation systems.
TurkmenistanArticle VIIIForeign exchange budgets or allocation systems. Binding foreign exchange allowances for current invisibles: remittances and travel. MCP arising from the application of commercial banks’ cash rate to certain transactions. Restrictions arising from the screening in the weekly auctions of all applications for foreign exchange payments by the Central Bank of Turkmenistan and on limits on transfers of interest.
UzbekistanArticle VIIIForeign exchange budgets or allocation systems. MCPs arising from (1) the contemporaneous application of the official rate and the current auction rate; and (2) the segmentation of the exchange market, resulting in deviation in the commercial bank rates of up to an administratively set limit of 12 percent.
VietnamArticle XIVBinding foreign exchange allowances for current invisibles: not specified.
Article VIIIExternal payments arrears. MCP arising from a tax on profit remittances of 5 percent and 10 percent on foreign-in vested firms. Other restrictions arising from limitations on foreign exchange for payments and transfers by foreign-invested firms that do not produce certain import substitutions or are not engaged in certain infrastructure work.
Table A2.Restrictions Maintained by Countries with Article VIII Status, 19971
CountryRestrictions
BelizeAd hoc rationing of foreign exchange sales by the central bank (not approved).
BotswanaMultiple currency practices (MCPs) arising from the Foreign Exchange Risk-Sharing Scheme (FERS) applicable to outstanding external loans obtained by certain public enterprises before December 1, 1990. The FERS was discontinued in 1990, and MCPs would be eliminated by 2006, when the last loan under the FERS will mature (approved until March 1, 1998).
Dominican RepublicMCP arising from the existence of a dual exchange rate system (not approved).
GuineaArrears on outstanding obligations under inoperative bilateral payment arrangements (BPA) (approved until January 31, 1998, or the next Article IV Consultation).
HondurasThe foreign exchange Dutch auction system used by the central bank to allocate foreign exchange may give rise to an MCP (not approved).
IndiaUnsettled balances under inoperative BPA with six European countries (not approved).

Binding foreign exchange allowances for current invisibles and transfers: (1) dividend remittances from investments in the consumer goods sectors must be balanced by export proceeds; (2) restrictions are imposed on remittances for overseas television advertising and by nonexporters and exporters without an adequate track record; (3) restrictions related to the nontransferability of balances under the Indo-Russian debt agreement; (4) a restriction on dividend payments on investments by nonresidents in air taxi services; (5) a restriction on transfer of amortization payments on loans by nonresident relatives (not approved); and (6) restrictions on remittances of past investment income. MCP arising from exchange rate guarantees on nonresident deposits, which would be phased out by August 1997 (approved until August 31, 1997).
JordanArrears owed to non-Paris Club creditors (approved until September 30, 1997, or completion of the third review under the Enhanced Structural Adjustment Facility, whichever is earlier).
KenyaMCP arising from obligations under the Exchange Risk Assumption Fund (now abolished); the MCP would be eliminated by 2003 (approved until May 31, 1998, or next Article IV consultation, whichever is earlier).
Kyrgyz RepublicMCP arising from the National Bank of the Kyrgyz Republic foreign currency auction system (approved through December 31, 1998).
MaltaMCP arising from a forward exchange rate guarantee scheme for U.K. and Irish tour operators; the scheme was to be ended with the winter tourist season (not approved, but eliminated in November 1997).
MongoliaMCP arising from the spreads of more than 2 percent between the official and market exchange rates (not approved).
PhilippinesMCP arising from forward cover provided to oil importers (approved until the expiration of contracts by March 1997).
RussiaBinding foreign exchange allowances: limitations on the convertibility of ruble balances held by nonresidents in the “T” accounts and in the ruble accounts of nonresident banks (the remaining restrictions on this particular issue is deemed largely “technical” in nature by the IMF staff and the authorities are in the process of removing the “technicalities.” Restriction arising from the requirement that nonresidents who purchase ruble-de nominated securities in the government short-term bonds (GKO) market may only repatriate principal and interest earned, if they first enter into a forward exchange contract (eliminated on December 31, 1997).
SeychellesArrears owed to commercial creditors (not approved).

Foreign exchange budget or allocation system (not approved).

Binding foreign exchange allowance for transferring dividends (not approved).
Sierra LeoneArrears owed to commercial creditors (approved until December 31, 1997).

Restriction arising from the requirement of tax clearance certificates for payments and transfers for certain types of current transactions (approved until June 30, 1997).
SurinameMCPs arising from (1) the mechanism used to determine the intervention exchange rate by the central bank, and (2) the requirement that the commercial banks sell the foreign exchange they acquire from the central bank at the intervention rate plus three cents of Suriname guilder, which might differ from the exchange rate used in other exchange sales (not approved).
ThailandMCP arising from the remittance tax on the transfer of profits abroad (not approved).
TunisiaMCP arising from honoring exchange rate guarantees extended prior to August 1988 to development bank; it will expire when existing commitments mature (not approved).
UkraineRestrictions arising from (1) the operation of the “loro” accounts of nonresident banks (this restriction was eliminated on May 1, 1997), and (2) limits imposed on the transferability of balances maintained on the hvrynia and foreign exchange settlement, and deposit accounts of nonresident individuals (not approved); these restrictions were eliminated by May 31, 1997).
ZimbabweMCPs arising from existing contracts under the discontinued forward foreign exchange scheme of the Reserve Bank of Zimbabwe (approved until May 15, 1997, or the next Article IV consultation, whichever is earlier). Binding foreign exchange allowances arising from the blocking of dividend and profit payments accrued on investments made before May 1993 (approved until May 15, 1997, or the next Article IV consultation, whichever is earlier).
Table A3.Total External Payments Arrears, 1993–97(In billions of SDRs, end of period)
19931994199519961997
Total outs tanding arrears58.4763.9553.0157.6858.51
Of which: countries with significant arrears
Angola3.053.713.774.242.00
Congo, Republic of1.600.891.260.900.99
Congo, Democratic Republic of the3.344.084.855.646.64
Côte d’lvoire4.004.154.324.644.70
Ecuador4.445.100.410.40
Kyrgyz Republic2.00
Madagascar0.871.161.281.470.72
Myanmar0.951.091.161.411.85
Nicaragua3.494.153.141.421.16
Nigeria4.446.708.6310.3611.04
Peru5.896.486.887.330.02
Russia7.498.95
Sudan9.169.4011.0012.0013.70
Tanzania1.161.241.371.55
Vietnam11.672.26
Yemen, Republic of2.623.203.424.041.23
Sources: IMF, World Economic Outlook (Washington, various issues).
Table A4.Regional Payment Arrangements, December 1997
Name of Regional ArrangementDatesNumber of MembersMembersSettlement PeriodModifications to Arrangement/Comments
LAFTA/LAIA—RCPA

(Latin American Free Trade Association/Latin American Integration Association—Reciprocal Payments and Credits Agreement)
1965-80-present11Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela4 monthsThe clearing mechanism was modified in 1991 with a two-tier Automatic Payments Program for the transitory financing of balances of multilateral compensation. In 1992, a modification was made for the authorization to channel through the mechanism payments originated in triangular trade.
ACU (Asian Clearing Union)1974—present7Bangladesh, India, Islamic Republic of Iran, Myanmar, Nepal, Pakistan, and Sri Lanka2 monthsPayments between the Islamic Republic of Iran and Pakistan became eligible in 1990. In September 1989, the ACU established a swap facility.
WACH/WAMA (West African Clearing House/West African Monetary Agency)1976—present16Benin, Burkina Faso, Cape Verde, Côte d’lvoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo1 monthClearing house for Economic Community of West African States (ECOWAS); 16 members ratified treaty in 1994; WACH was transformed into WAMA on March 8, 1996.
CEPGL (Clearing House of the Economic Community of the Great Lakes Countries)1976—present3Burundi, Rwanda, and Democratic Republic of the Congo10 daysAll countries are also members of the Common market for Eastern and Southern Pacific (COMESA).
ECCASCH (Economic Community of the Central African States Clearing House)1981—present10Burundi, Cameroon, Central African Republic, Chad, Democratic Republic of the Congo, Republic of Congo, Equatorial Guinea, Gabon, Rwanda, and São Tomé and Príncipe1 monthNone.
PTA/COMESA (Preferential Trading Area for Eastern and Southern Africa/Community of Eastern and Southern African States)1984—present20Angola, Burundi, Comoros, Democratic Republic of the Congo, Eritrea, Ethiopia, Kenya, Lesotho, Madagascar, Mauritius, Mozambique, Namibia, Rwanda, Sudan Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe2 monthsThe PTA was transformed in 1994 into the COMESA.
CMEA (Multilateral Clearing System of the former Council for Mutual Economic Assistance)1949–919Bulgaria, Cuba, Czechoslovakia, Hungary, Mongolia, Poland, Romania, former U.S.S.R., and VietnamU.S.S.R., and Vietnam.





Terminated.
EPU (European Payments Union)1950–582Terminated.
CACH/CPS (Central American Clearing House/Central American Payments System)1961–925Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua1 monthTerminated; CACH transformed into CPS in 1990.
RCD/ECO (Regional Cooperation for Development/Economic Cooperation Organization)1967–903Islamic Republic of Iran, Pakistan, and TurkeyTerminated.
CMCF (Caribbean Multilateral Clearing Facility)1977–8313Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and TobagoTerminated.
Source: United Nations Conference on Trade and Development Secretariat.
Table A5.Members Accepting Article VIII, Sections 2, 3, and 4 and Nature of Restrictions Maintained, 1994–97
CountryDate of AcceptanceFree of RestrictionsType of RestrictionTemporary Approval
Grenada01/24/94Yes
Ghana02/21/94Yes
Sri Lanka03/15/94Yes
Uganda04/05/94Yes
Bangladesh04/11/94NoMultiple currency practices (MCP) arising from remaining exchange guarantees on interest components under the former Nonresident Foreign Currency Deposits scheme.Yes
Lithuania05/03/94Yes
Nepal05/30/94Yes
Latvia06/10/94Yes
Kenya06/30/94NoMCP arising from the exchange rate guarantees under the Exchange Risk Assumption Fund schemeYes
Pakistan07/01/94NoMCP arising from preexisting forward foreign exchange cover contracts.Yes
Estonia08/15/94Yes
India08/20/94NoMCP arising from exchange rate guarantees under the Foreign Currency Nonresidents Account scheme.

Exchange restriction from limits on foreign exchange allowances for certain current transactions, the non Iransferability of balances under a debt agreement with Russia’s limitations on dividend remittances by foreign investors in the consumer goods sector, and the restrictions related to the remaining balances under inoperative transferability of current and past investment income by nonresident Indians.
Yes



No
Paraguay03/23/94Yes
Western Samoa10/06/94Yes
Malta11/30/94NoMCP arising from the forward exchange rate guarantee scheme for Untied Kingdom and Irish tour operators, and a bilateral payments agreement with the Libyan Arab Republic.Yes
Zimbabwe02/3/95NoBlocked funds relating to profits and dividends accrued on investments; forward foreign exchange cover scheme.Yes
Jordan02/20/95NoPayments arrears.Yes
Kyrgyz Republic03/29/95NoMultiple currency practice arising from the National Bank of the Kytgyz Republic foreign currency auc Lion system.Yes
Croatia05/29/95NoPayments arrears.Yes
Poland06/01/95Yes
Moldova06/30/95Yes
Slovenia09/01/95Yes
Philippines09/08/95NoMCP arising out of forward cover scheme for oil imports.Yes
Czech Republic10/01/95NoOutstanding balances from the concluded bilateral payment agreement with Slovak Republic were to be settled not later than April 1, 1996.No
Slovak Republic10/01/95NoOutstanding balances from the concluded bilateral payments agreement with Croatia were to be settled not later than April 1, 1996.No
Brunei10/10/95Yes
Botswana11/17/95NoMCParising from the discontinued Foreign Exchange Risk Sharing Scheme.Approval was in effect at the time of acceptance; further approval sought in context of next annual consultation.
Guinea11/17/95NoPayments arrears arising from unsettled balances outstanding under inoperative bilateral payment agreements.Approval sought in context of annual consultation papers issued in November 1955 and discussed in December 1995.
Malawi12/07/95Yes
Sierra Leone12/14/95NoExchange restrictions arising from tax clearance certificate required for certain types of current transactions, and external payment arrears.Yes
Hungaiy01/01/96Yes
Mongolia02/01/96Yes
Russia06/01/96NoLimitations imposed on the transferability of balances maintained on nonresident “T” accounts and ruble accounts of nonresident banks.No1
CFA countries206/01/963Yes
Tanzania07/15/96Yes
Kazakhstan07/16/96Yes
Madagascar09/18/96Yes
Namibia09/20/96Yes
Ukraine09/24/96NoAn exchange restriction arising from the rules governing the operation of hryvnia and foreign exchange settlement and deposit accounts of nonresident individuals.Yes
China12/01/96Yes
Yemen Republic12/10/96Yes
Georgia12/20/96Yes
Guinea-Bissau01/01/97Yes
Lesotho03/05/97Yes
Armenia05/29/97Yes
Algeria09/15/97NoAn exchange restriction arising from the absence of due notification to the banking system and the public of the central bank’s practice of approving all borta fide applications for foreign exchange in excess of de jure limits contained in relevant exchange regulations for business and tourist travel, and for educational and medical reasons.Yes
Table A6.Country Groupings
Industrial1High IncomeNonindustrial

Middle Income
Low IncomeTransition
AustraliaArubaAlgeriaAfghanistan, Islamic State ofAlbania
AustriaBahamas, TheAntiguaAngolaArmenia
BelgiumBruneiArgentinaBangladeshAzerbaijan
CanadaCyprusBahrainBeninBelarus
DenmarkHong Kong SARBarbadosBhutanBosnia and Herzegovina
FinlandIsraelBelizeBurkina FasoBulgaria
FranceKoreaBoliviaBurundiCroatia
GermanyKuwaitBotswanaCentral African RepublicCzech Republic
GreeceNetherlands AntillesBrazilCambodiaEstonia
IcelandQatarCape VerdeCameroonGeorgia
IrelandSingaporeChileChadHungary
ItalyUnited Arab EmiratesColombiaChinaKazakhstan
JapanCosta RicaComorosKyrgyz Republic
LuxembourgDjiboutiCongo, Dem. Rep. of theLatvia
NetherlandsDominicaCongo, Republic ofLithuania
New ZealandDominican RepublicCôte d’IvoireMacedonia
NorwayEcuadorEquatorial GuineaMoldova
PortugalEgyptEritreaMongolia
San MarinoEl SalvadorEthiopiaPoland
SpainFijiGambia, TheRomania
SwedenGabonGhanaRussia
SwitzerlandGrenadaGuineaSlovak Republic
United KingdomGuatemalaGuinea BissauSlovenia
United StatesIndonesiaGuyanaTajikistan
Iran, Islamic Republic ofHaitiTurkmenistan
IraqHondurasUkraine
JamaicaIndiaUzbekistan
JordanKenya
KiribatiLao, PDR
LebanonLiberia
LesothoMadagascar
LibyaMalawi
MalaysiaMali
MaldivesMauritania
MaltaMozambique
Marshall IslandsMyanmar
MauritiusNepal
MexicoNicaragua
MicronesiaNiger
MoroccoNigeria
NamibiaPakistan
OmanRwanda
PanamaSierra Leone
Papua New GuineaSão Tomé and Príncipe
ParaguaySenegal
PeruSolomon Islands
PhilippinesSomalia
Saudi ArabiaSri Lanka
SeychellesSudan
South AfricaTanzania
St. Kitts and NevisTogo
St. LuciaUganda
St. VincentVietnam
SurinameYemen Republic
SwazilandZambia
Syrian Arab RepublicZimbabwe
Thailand
Tonga
Trinidad and Tobago
Tunisia
Turkey
Uruguay
Vanuatu
Venezuela
Western Samoa
Table A7.Evolution of Exchange Rate Regimes in Transition Economies(IMF classification)
Country19901991199219931994199519961997
Baltics, Russia, and other countries of the former Soviet Union
ArmeniaPegged1Free floatFree floatFree floatFree floatFree float
AzerbaijanPegged1Pegge1Free floatFree floatFree floatFree float
BelarusPegged1Managed floatManaged floatManaged floatManaged floatManaged float
EstoniaPegged1Pegged1Pegged1Pegged1Pegged1Pegged1
GeorgiaPeggedFree floatManaged floatManaged floatManaged floatManaged float (Pegged (de facto))1
KazakhstanFree floatFree floatFree floatFree floatManaged float
Kyrgyz RepublicPegged1Free floatFree floatManaged floatManaged floatManaged float
LatviaFree floatFree floatFree floatManaged floatManaged floatPegged2
(Pegged (de facto))2(Pegged (de facto))2(Pegged (de facto))2
LithuaniaFree floatFree floatPegged1Pegged 1Pegged1Pegged1
MoldovaPegged1Free floatFree floatFree floatFree floatFree float
RussiaFree floatFree floatFree floatManaged floatManaged floatManaged float
TajikistanPegged1Free floatFree floatFree float
TurkmenistanManaged floatPegged1Managed floatManaged floatManaged float (Pegged (de facto))1
UkraineFree floatFree floatFree floatManaged floatManaged floatManaged float
UzbekistanManaged floatManaged floatManaged float
Eastern and central Europe
AlbaniaPegged2Free floatFree floatFree floatFree floatFree floatFree float
BulgariaPegged2Free floatFree floatFree floatFree floatFree floatFree floatPegged1
CroatiaFree floatManaged floatManaged floatManaged floatManaged float
Czech RepublicPegged2Pegged2Pegged2Pegged2Pegged2Pegged2Pegged2Managed float
HungaryPegged2Pegged2Pegged2Pegged2Pegged2Managed floatManaged floatManaged float
Macedonia, former Yugoslav Republic ofFree floatManaged floatManaged floatManaged floatManaged float
(Pegged (de facto))1
PolandPegged1Managed floatManaged floatManaged floatManaged floatManaged floatManaged floatManaged float
RomaniaPegged2Managed floatFree floatFree floatFree floatFree floatFree floatFree float
Slovak RepublicPegged2Pegged2Pegged2Pegged2Pegged2Pegged2Pegged2Pegged2
SloveniaManaged floatManaged floatManaged floatManaged floatManaged float
Table A8.Changes in Exchange Arrangements, First Quarter 1994-Fourth Quarter 19971
Official De Jure ArrangementOf Which: De Facto Pegged Arrangements2Period of Change
A.From Less Flexible to More Flexible Arrangements (33)
Pegged: Single Currency → Managed Floating (5)Angola*1994:Q2
Nigeria1995:Q1
Suriname*1994:Q3
TurkmenistanVenezuela*1995:Q4
Venezuela*1996:Q2
Pegged: Single Currency → Independent Floating (4)Azerbaijan1994:Q2
Tajikistan*1995:Q2
Yemen1996:Q3
Liberia1997:Q4
Pegged: Currency Composite → Limited Flexibility (1)AustriaAustria1994:Q4
Pegged: Currency Composite → Managed Floating (6)Czech Republic1997:Q2
Algeria1994:Q4
Mauritius1994:Q4
HungaryHungary1995:Q1
Solomon IslandsSolomon Islands1997:Q4
Thailand1997:Q3
Pegged: Currency Composite → Independent Floating (5)Malawi1994:Q1
Mauritania*1995:Q4
Papua New Guinea1994:Q4
Rwanda1995:Q1
Zimbabwe1994:Q2
Managed Floating → Independent Floating (12)Dominican Republic1994:Q3
Guinea1994:Q4
Indonesia1997:Q3
Lao, PDR*1995:Q3
Madagascar1994:Q2
Mexico1994:Q4
São Tomé and Príncipe1994:Q4
Somalia1994:Q3
Sudan*Sudan*1995:Q4
Suriname*1994:Q4
Eritrea1997:Q4
Korea1997:Q4
B.From More Flexible to Less Flexible Arrangements (35)
Managed Floating → Pegged: Single Currency (3)Angola*1996:Q4
Guinea BissauGuinea Bissau1997:Q1
Venezuela*Venezuela*1994:Q3
Independent Floating → Pegged: Single Currency (3)Bulgaria1997:Q3
Lithuania1994:Q1
Nigeria1994:Q1
Managed Floating → Pegged: Currency Composite (1)Latvia*1997:Q4
Independent Floating → Limited Flexibility (2)FinlandFinland1996:Q4
ItalyItaly1996:Q4
Independent Floating → Managed Floating (26)Bolivia*Bolivia*1997:Q4
BrazilBrazil1994:Q4
Costa RicaCosta Rica1995:Q4
CroatiaCroatia1994:Q3
Dominican Republic1994:Q2
El SalvadorEl Salvador1995:Q4
Ethiopia1997:Q4
GeorgiaGeorgia1994:Q2
HondurasHonduras1994:Q2
Iran, Islamic Republic ofIran, Islamic Rep. of1995:Q4
Kazakhstan1997:Q4
Kenya1997:Q4
Kyrgyz Republic1995:Q4
Lao, PDR*1997:Q1
LatviaLatvia1995:Q1
Macedonia, former

Yugoslav Republic of
Macedonia, former

Yugoslav Republic of
1994:Q3
Malawi*1997:Q3
Mauritania*1997:Q4
Norway1995:Q2
Romania1997:Q4
RussiaRussia1995:Q2
Sudan*Sudan*1996:Q3
Suriname*1995:Q4
Tajikistan*1997:Q4
UkraineUkraine1995:Q4
Uzbekistan1995:Q4
Table A9.Changes in Exchange Rate Arrangements Affecting the Official Classification and Other Currency Adjustments, 1994-December 31, 19971
CountryReclassiftedDate1RemarksChanges Within the Existing Classification
Algeria1994:Q2Devaluation: The dinar was devalued in two stages, by 37.5% and 7.3% at the outset of the program in 1994 and in October 1994, respectively.
Pegged: Currency Composite: OtherMore Flexible: Other Managed Floating1994:Q4Foreign exchange auctions for the dinar were introduced.
Angola1994:Q1Devaluation and unification of exchange rate: The exchange rate was devalued in two stages (from Nkz 16,500 to Nkz 16.830 to Nkz 35,000), reflecting a cumulative devaluation of 81.4% and effectively unifying the dual exchange rate system.
Pegged: Single Currency: U.S. dollarMore Flexible: Other Managed Roaring1994:Q2Angola adopted a single official exchange rate determined in foreign exchange auctions conducted by the central bank three times a week.
1995:Q3New currency: A new currency, the readjusted kwanza, was introduced replacing the new kwanza. The readjusted kwanza was equivalent to 1,000 new kwanzas.
1996:Q1Devaluation; The central bank devalued the readjusted kwanza in the secondary official exchange market twice to a total cumulative devaluation of 85%
1996:Q3Devaluation: The readjusted kwanza was devalued from KZR 161,386 per US$1 to KZR202.000 per US$ 1, close to the rate prevailing in the parallel market.
More Flexible: Other Managed FloatingPegged: Single Currency: U.S. dollar1996:Q4The authorities pegged the official exchange rate 10 the U.S. dollar.Devaluation- At the same time as pegging the exchange rate the currency was also devalued from K2R161,386 to KZR202.000 per US$I, close to the rate prevailing in the parallel exchange market.
1997:S2Devaluation: The readjusted kwanza was devalued by 30%.
ArmeniaMote Flexible: Independently Floatinj1996:Q3Change in spread: The spread between the buying and selling exchange rates was widened in an effort to determine a band for interbank trading to allow more exchange rate flexibility. The spread was less than 2%. The central bank intervenes nearly daily in the market mostly to manage liquidity in the market.
AustriaPegged: Currency Composite: OtherFlexibility Limited vis-à-vis a Single Currency or Group of Currencies1994:Q4The Austrian schilling entered the Exchange Rate Mechanism (ERM) of the European Monetary System
Azerbaijan1994:Q1Legal tender: The manat became the sole legal tender and was temporarily pegged to the U.S. dollar and repegged to the Russian ruble later.
Pegged: Single Currency: OtherMore Flexible: independently Floating1994:Q2The exchange rate is set once a week on the basis of a weighted average of exchange rates quoted by commercial banks.
1995:Q1Unification of exchange rase: A unified exchange rate was adopted at the market level that applied to both current and capital account transactions.
BangladeshPegged: Currency Composite: Other1996:Q2Devaluation: The taka was devalued twice in April 1996: from Tk41 to Tk41.50. to Tk41.75.
1996:Q3Devaluation: The central bank continued to adjust the exchange rate of the taka at frequent intervals. There were six small adjustments in the external value of the taka since April 1996. The taka was last devalued by 0.355% in September.
1997:S1Devaluation: The taka was devalued by 0.7% in February, and by 1% in March and April, bringing the cumulative depreciation to 4.4% so far in 1996–97.
1997:S2Devaluation; The taka was devalued by 1%.
BelarusMore Flexible: Other Managed Floating1994:Q2Legal lender: The Beloruisian ruble became the sole legal tender.
1994:Q4New currency: The rubel replaced the Belorussian ruble. The conversion was carried out at the rate of 10Br to 1 rubel.

Unification of exchange rate: The exchange rates for cash and noncash foreign currencies were also unified.

Introduction of a bend: An informal exchange rate band of Rb 111,300-Rb 113,100 per US$1 was introduced. The upper limit was raised to Rbl 15,000 through end-1996.
1997:S1 and 1997:S2Change in band: The limits of the exchange rate band were raised to Rbl 15,500 and Rbl 21.000 per US$1 for 1997.

Unification of exchange rate: The exchange rate was unified and immediately reached the upper limit of Rbl 21.000 with a 5% margin for cash transactions. In the period between end-February 1997 and end-February 1998, the authorities permitted the official rate to depreciate in nominal terms from Rbl 22,300 to Rbl 32,670 per US$1.
BoliviaMore Flexible: Independent FloatingMote Flexible: Other Managed Floating1997;S2The exchange regime has been reclassified in view of the information that the deviations of the market exchange rate from the official exchange rate (determined in daily anchors of the central bank) are extremely tight due to the very narrow spread between the hank’s bid and ask prices, and that the regime is in practice a crawling peg aimed at maintaining the competitiveness of the economy.
Bosnia and HerzegovinaPegged: Single Currency: deutsche marlt1997:S2introduction of new currency and currency board arrangement: Previously also maintained peg to deutsche mark.
Brazil1994:Q1New currency: A new unit of account, the Unit of Real Value, was introduced equivalent to one U.S. dollar.
1994:Q2New currency: A new currency was introduced, the real. The central bank set a parity for the value of the real in terms of the U.S. dollar.
Mote Flexible: Independently FloatingMore Flexible: Other Managed Floating1994:Q4



1995:Q1
The authorities intervene occasionally in the foreign exchange market.

Within this adjustable exchange rate bank mechanism, the central bank in practice has announced periodically a wide exchange rate band, changed about once a year, and induced a monthly depreciation of the real vis-à-vis the U.S. dollar by moving a mini band within the wider band The width of the outer band has been about 9%. While the width of the inner band has been generally kept below 1%, with the exchange rate determined by interbank market panicipants within this mini band.






Change in band: A new exchange rate policy is adopted based on an adjustable exchange rate band, with central bank intervention taking place within the limits of the band. The band was initially set within the range of R$0.86/US$l to RS0.90/US$ 1. and later modified to a range of R$0.88/US$ 1 to R$0.93/US$ 1, a 5.7% spread.
1995:Q2Change in band: The exchange rate band was widened to a range of R$0.91/US$1 to R$0.99/US$1, an 8.8% spread.
1996:Q1Change in hand: The exchange rate band was widened to R$0.97-R$1.06 per U.S. dollar.
1997:S2Change in hand: The central bank widened the exchange rate band from R$0.96-R$ 1.05 to RS$1.05 R$1.14 per US$1, while the currency continued to depreciate within the band (the band was adjusted to R$1.12-1.22 per US$1 on January 18, 1998).
Bulgaria1997:S1Change in exchange rate determination: The way to determine the central exchange rate was changed to base it on the weighted average of transactions in the interbank exchange market during the previous trading day.
More Flexible: Independently FloatingPegged: Single Currency: Other1997:S2The Law on the Bulgarian National Bank was amended and established a currency board arrangement whereby the deutsche mark is the peg currency at the rate of lev 1,000 per DM 1.
CambodiaMore Flexible: Other Managed Floating1994:Q1Unification of exchange rate: The dual exchange market was unified by narrowing the spread between the official and parallel market exchange rates to no more than 1% on a daily basis.
1995:Q1New currency: The authorities issued new coins and bank notes in larger denominations.
CFA franc countriesPegged: Single Currency: French franc1994:Q1Devaluation: The parities of the CFA franc and the Comoran franc were changed to 100 CFA francs per 1 French franc and 75 Comoran francs per 1 French franc, respectively. This resulted in a 50% devaluation of the CFA Franc and a 33.3% devaluation of the Comoran franc.
ChileMore Flexible: Other Managed Floating1994:Q4Change in basket composition: The Reference Currency Basket (CRM) was revalued; the dollar. deutsche mark, and yen were given new weights. The “agreement dollar” continued to be calculated on the basis of the CRM and the daily international exchange rates. The central bank continued to allow fluctuations of the actual exchange rate within a range limited to 10% above or below the agreement dollar value.
1997:S1Change in basket composition: The composition of the currency basket used to calculate the central reference exchange rate of the exchange rate band was adjusted by increasing the weight of the U.S. dollar from 45% to 80%. while reducing that of the deutsche mark and Japanese yen from 30% to 15% and from 15% to 5%. respectively. Change in band: Additionally, the width of the exchange rate band was increased from ±10% to ±12.5%. As a result the reference exchange rate was revalued by 4%.
ColombiaMore Flexible: Adjusted According to a Set of IndicatorsMore Flexible: Other Managed Floating1994:Q1The exchange rate was managed with in a preannounced banct set initially at ±7%, The central bank intervenes in the market from time to time.Ciuinge in band: The annual rate of depreciation of the exchange rate band against the U.S. dollar was established at 11%.
1994:Q4Change in band: The midpoint of the exchange rate band was appreciated by 7.5%. The width of the band was established at ±7% on each side of the midpoint exchange rate. The slope of the band was increased to 13.6%.
1997:S1Change in band: The annual rate of depreciation of the midpoint of the exchange rate band against the U.S. dollar was increased from 13.6% to 15% while preserving the band width.
Costa RicaMore Flexible: Independently FloatingMore Flexible: Other Managed Floating1995:Q4The colon is adjusted by the central bank on a daily basis.
1997:S2Change in rate of crawl: The rate of crawl of the exchange rate was reduced to 9 cents a day (10.5% on an annual basis). The central bank continued with the crawling peg system of daily devaluations based on targeted inflation.
Croatia, Republic of1994:Q2New currency: The Croatian dinar was replaced with the kuna at a ratio of 1,000 to 1.
More Flexible: Independently FloatingMore Flexible: Other Managed Floating1994:Q4The external value of the tuna is determined in an interbank market. The authorities manage the exchange rate of the kuna against the deutsche mark within a narrow band and intervene in the market to smooth undue fluctuations in the exchange rate.
Czech Republic1996:Q1Change in band: The foreign exchange band was widened from ±0.5% to ±7.5%.
Pegged: Currency Composite: OtherMore Flexible: Other Managed Floating1997:S2The Czech authorities abandoned the ±7.5% fluctuation margins of the Czech koruna and adopted a managed floating exchange rate arrangement-The koruna immediately depreciated 12% below its central parity, before gradually recovering to about 10% below the central parity.
Dominican RepublicMore Flexible: Other Managed FloatingMore Flexible: Independently Floating1994:Q3The official exchange rate began to be adjusted on a weekly basis according to developments in the private interbank market
1997:S1Devaluation: The Dominican peso was devalued by 9% bringing it closer in line with the interbank exchange rate.
EcuadorMore Flexible: Other Managed Floating1995:Q1Change in band: The central bank devalued the midpoint of the exchange rate by an additional 3% but maintained the width of the band (±2%) and the 12% annual rate of devaluation against the U.S. dollar.
1995:Q4Change in band: The width of the band was changed from ±3.8% to ±10%. and the midpoint exchange rate was depreciated by 3.1% against the U.S. dollar. Also, the pace of depreciation of the midpoint exchange rate was accelerated from 12% to 16.5%.
1996:Q3Change in band: The midpoint of the Sucre’s exchange rate band was depreciated, and its pace of depreciation was accelerated to 8.5% a year.
1997:S1Change in band: The midpoint of the exchange rate band was depreciated by 3.7%. and the annual rate of depreciation of the midpoint was changed from 18½% to 21%. The central bank also announced it will maintain the market exchange rate within a narrow band (inner band) with a width of 2 Sucres on each side of the observed exchange rate of the previous day.
Egypt.More Fexibte: Other Managed Boatingl997:SlChange in Spread: The spread between the buying and selling rates for foreign exchange was increased to 0.3%
El SalvadorMore Flexible: Independently FloatingMore Flexible: Other Managed Floating1995:Q2The central bank adopted a policy of limiting the variation of the colon against the U.S. dollar.
EritreaMore Flexible: Other Managed Floating1995:Q4Unification of exchange rate: The official and the auction exchange rates were unified and the preferential exchange rate was kept. Multiple currency practices emerged from a spread of more than 2% between the auction and preferential exchange rates.
1997:S2Unification of exchange rate: The official and preferential exchange rates of the birr were unified, fixing the unified rate al Br,7,2 per US$1. which is an administered rate that approximates the parallel market rate.
More Flexible: Other Managed FloatingMore Flexible: Independently Roaring1997:52In November 1997, Erirrea introduced its national currency, the Nakfa. which is market determined.introduction of new currency: Eritrea introduced its national currency in November 1997. and the Ethiopian Birr ceased to be legal tender in Eritrea as of November 22, 1997.
EthiopiaMore Flexible: Independently Floating1994:Q2Devaluation: The official exchange rate was devalued in three stages to a cumulative devaluation of 11.7% from B5.00 to B5.66 per US$1. Later it was revalued to B5.59 per US$1.
1995:Q4Unification of exchange rare: The official and auction exchange rates were unified, with the official exchange rate set as the marginal rate resulting from the biweekly auction.
More Flexible: Independently FloatingMore Flexible: Managed Floating1997:S2The official exchange rate of the birr is the marginal rate determined in weekly auctions for announced quantities of foreign exchange as determined by the National Bank of Ethiopia. In view of this information, the exchange rate arrangement has been classified to managed floating.
FinlandMore Flexible: Independently FloatingFlexibility Limited vis-à-vis a Single Currency or Group of Currencies: Cooperative Arrangement1996:Q4The Finish markka entered the ERM of the European Monetary System. The markka’s central rate is Fmk5.85424 as of December 31, 1997 (changed to Fmk6.01125 on March 16. 1998) and is maintained within a margin of ±15% around the bilateral central rates against other participating currencies.
GeorgiaMore Flexible: Independently FloatingMore Flexible: Other Managed Roaring1994:Q4The coupon is determined by an auction system whereby the central bank intervenes.
1995:Q3New currency; A new national currency, the lari. was introduced. The conversion from coupon to lari took place at a rate of one million coupons to one lari for both cash and bank accounts in coupons. An official exchange rate of ruble 4,000 per lari was also announced for the conversion of rubles to lari. The lari became the sole legal tender in Georgia.
1996:Q3Exchange rate unification: The official exchange rate for the lari against the U.S. dollar is set daily at the level of the Tbilisi Interbank Currency Exchange auction rate, thus terminating the multiple currency practice. The spread between the auction rate and the street rate is now less than 1%.
GuineaMore Flexible: Other Managed BoatingMore Flexible: Independently Floating1994:Q4An interbank market for exchange rate determination was introduced
Guinea-Bissau1994:QIChange in spread; The spread between the buying and selling exchange rates was reduced from 3.5% to 2% thus eliminating the multiple currency practice.
More Flexible: Other Managed FloatingPegged: Single Currency: French Franc1997:S1Guinea-Bissau joined the West African Monetary Union. The currency conversion was made at a rate of PG65 per CFAF I.
HondurasMore Flexible: Independently FloatingMore Rexible: Other Managed Floating1994:Q2The interbank market was replaced by an auction system. The reference rate is equal to the weighted average of the prices of successful bids at each auction. The base exchange rate is the arithmetic average of the reference exchange rates of the previous 15 auctions.
1996:Q2Change in band: The exchange rate band was widened from ±1% to ±5% around the central rate (widened further to ±7% in March 1998).
1997:S1Devaluation: The first pace of devaluations of the base rate was initialed in April: the base rate was devalued by 2.5% by May. The forward-looking exchange rate crawl was maintained.
Hungary1994:Q1Devaluation: The forint was devalued twice, by 1% and by 2.6%. against the basket of currencies to which it is pegged.
1994:Q3Devaluation: The forint was devalued by 8% against the basket of currencies.
1994:Q4Devaluation: The forint was devalued by 1.1% against the basket of currencies in October, and by 1.0% in November.

Change in band: The band was widened from ±2.5% lo ±4.5% in December.
Pegged: Currency Composite: OtherMore Flexible: Other Managed Floating1995:Q1A new preannounced crawling peg exchange rate arrangement was introduced.Devaluation: The forint was devalued by 1.4% in January, by 2% in February, and by 8.3% in March when Hungary reclassified its exchange rate arrangement.
1996:Q1Change in rate of crawl: The rare of crawl was reduced from 1.3% to 1.2% pet month. Margins around the central rate were maintained ±2.25%.
1996:Q4Change in basker The composition of the basket was changed by replacing the European currency unit (ecu.) with the deutsche mark keeping the same weight. In addition, the central bank began to base its official exchange rate on interbank spot rates.
1997:S1Change in rate of crawl: The monthly depreciation of the crawling peg against a basket of currencies was reduced from 1.2% to 1.1%.
1997:S2Change in rate of crawl: The monthly rate of devaluation against the basket of currencies was reduced to 1.1% a month in April, and to 1% in August.
IcelandPegged: Currency Composite: Other1995:Q3Change in basket: The official basket of currencies against which the exchange rate of the krona is determined was changed lo 16 currencies and replaced the previous basket that constituted the ECU. the U.S. dollar, and the Japanese yen. Also, the band around the central rate was widened from ±2.25% to ±6%.
1997:S2New system of exchange rule determination: The krona is fixed on the basis of indicative prices quoted by other market participants. The central bank can intervene, and when it does intervene it bases the rate on actual trading prices (trade at that time.
Indonesia1995:Q2Change in spread: The spread between Bank Indonesia’s buying and selling exchange rates was widened from Rp 30 per US$1 to Rp44 per US$1.
1995:Q4Change in band: The exchange rate band within which the rupiah is freely traded was widened from 2% to 3%. A distinction began to be made between the intervention band within which the interbank rate fluctuates, and the conversion rates (with a maximum of 2% spread) that the central bank applies to certain transactions.
1996:Q2Change in band: The exchange rate band was widened from ±3% to ±5%.
1936:Q3Change in band: The exchange rate band was widened from ±5% to ±8%.
More Flexible: Other Managed FloatingMore Flexible: Independently Floating1997:S2In August, the currency was no longer protected within a set trading exchange rate band and became an independently floating exchange rate system.Change in band: In July, the central bank widened the intervention band to ±12% from ±8%.
Iran, Islamic Republic of1994:Q2Dual exchange system: A dual exchange system was introduced comprising an export and official floating exchange rates. The new export exchange rate is set daily at Rls 50 per US$1 lower than the midpoint of the buying and selling rates in the free market. The official floating exchange rate continues to be announced daily in terms of the SDR. The official floating exchange rate continues to be used as the representative rate for the Iranian rial.
More Flexible: Independently FloatingMore Flexible: Other Managed Floating1995:Q2The central bank introduced a 100% repatriation and surrender requirement on non-oil exports; all transactions were required to be effected through the banking system.Devaluation: The official export exchange rate was devalued by 21.8%.
IsraelMore Flexible: Other Managed Floating1995:Q2Change in band: The exchange rate band within which the sheqel fluctuates with regard to the currency basket was widened from ±5% to ±7% on either side of the band’s central rate.
1997:S2Change in band: The authorities announced that the exchange rate would be widened to ±15%. In June 1997, the depreciation limit of the exchange rate was widened to 21% from 1%. while its slope remained at 6% a year. This implied That by May 1998 the range of fluctuation of the new sheqel would be 30%.
ItalyMore Flexible: Independently FloatingFlexibility Limited vis-à-vis a Single Currency or Group of Currencies: Cooperative Arrangeme1996:Q4The Italian lira entered the ERM of the European Monetary System. The lira’s central rate was set at Lit,906.48 per ECU and is maintained within a fluctuating margin of ±15% around the bilateral central exchange rates against other participating currencies.
JordanPegged: Currency Composite: SDR1995:Q4From October 1995, the Jordan dollar has been tightly pegged to the U.S. dollar without a formal change in the regime.
KazakhstanMore Flexible: Independently FloatingMore Flexible: Other Managed Floating1997:S2The exchange regime has been reclassified to reflect more accurately the practice followed by the central bank.
KenyaMore Flexible: Independently FloatingMore Flexible: Other Managed Floating1997:S2The exchange rate regime was reclassified to reflect the actual practice of the authorities to intervene on a frequent basis, and sometimes massively.
KoreaMore Flexible: Other Managed Floating1995:Q4Change in band: The width for the band within which the exchange rate of the won fluctuates was widened from ±1.5% to ±2.25% around the base exchange rate.
1997:S2Change in buna: The width of the band was widened several limes, most recently in November 1997 to ±10%.
More Flexible: Other Managed FloatingMore Flexible: Independently Floating1997:S2Effective December 16. 1997. the exchange rate band was abandoned and the won was floated to be determined by supply and demand.
Kyrgyz RepublicMore Flexible: Independently RoaringMore Flexible: Other Managed Floating1995:Q4The central bank maintains the sorn within a relatively narrow band with interventions in the foreign exchange market.
Lao, People’ Democratic Republic ofMore Flexible: Other Managed FloatingMore Flexible: Independently Floating1995:Q2Devaluation: A series of step devaluations were effected during this quarter The exchange rate was devalued from KN719 to KN785, representing a cumulative devaluation of 8.4%.
1995:Q3A unified market-determined exchange rate regime was introduced. In practice, the kip has a de facto peg to the U.S. dollar.
1997:S1Devaluation: The authorities adjusted me exchange rate quoted by a major stale-owned commercial bank and completed the two-step depreciation of the kip by depreciating it by an additional 2%, completing the total of 5% depreciation.
1997:S2Devaluation: The exchange rate of the kip was devalued by a total of 42% between June and October in line with the movements in the parallel exchange market.
LaiviaMore Flexible: Independently FloatingMore Flexible: Other Managed Floating1995:Q1Under the formally announced shift to managed float regime, the exchange rate showed a very close relationship to the SDR with the authorities pursuing a de facto peg to the SDR.
More Flexible: Other Manage FloatingPegged: Currency Composite: SDR1997:S2This reclassification reflects the formali nation of the authorities de facto peg followed since February 1994 under the formally announced floating exchange rate arrangements.
LiberiaPegged: Single Currency (the U.S. dollar)More Flexible: Independently Floating1997:S2Although the Liberi an dollar is pegged to the U.S. dollar at 1:1. the U.S. dollar trades at substantial premium in parallel market transactions, and this market-determined rate was sanctioned for official transactions with passage of an interim budget in October 1997 Accordingly, the regime was classified as Independently Floating.
LithuaniaMore Flexible; Independently FloatingPegged: Single Currency: U.S. Dollar1994:Q1Under the Litas Stability Law a currency boai arrangement was established whereby the lita: was pegged to the U.S. dollar.
Macedonia, former Yugoslav Republic ofMore Flexible: Independently FloatingMore Flexible: Other Managed Floating1994:Q4The central bank intervenes in the foreign exchange market to support the target exchange rate of the denar.
1997:S2Devaluation: The denar was devalued to denar 31 per deutsche mark from denar 26.7 per DM 1.
MadagascarMore Flexible; Adjusted According to a Set of IndicatorsMore Flexible: Independently Floating1994:Q2An interbank market for foreign exchange is introduced.
MalawiPegged: Currency Composite: OtherMore Flexible: Independently Floating1994:Q1The exchange rate was determined on the basis of supply and demand conditions; in practice, the authorities intervened in the market to maintain the nominal exchange rate under a de facto peg regime against the US. dollar.
More Flexible: Independently FloatingMore Flexible: Other Managed Floating1997:S2The authorities allowed the kwacha to depreciate significantly starting from July 1997, abandoning the de facto peg against the U.S. dollar, and stated their intention lo manage the exchange rate in a flexible manner, with intervention limited to smoothing cut fluctuations of the rate and with due regard to consideration for the international reserve targets.
MauritaniaPegged: Currency Composite: OtherMore Flexible: Independently Floating1995:Q4The dual exchange rate market was unified and the official exchange rate is market determined.
More Flexible: Independently FloatingMore Flexible: Other Managed Floating1997:S2Since 1997. the authorities have been following a more active policy to reverse teal appreciation of the currency: the authorities have pursued a nominal depreciation of 2.6% a month against the U.S. dollar compared with an average of 1 % during the first half of 1997.
MauritiusPegged: Currency Composite: OtherMore Flexible: Other Managed Floating1994:Q4An interbank market for foreign exchange was introduced.
MexicoMore Flexible: Other Managed FloatingMore Flexible: Independently Floating1994:Q4The new peso was allowed to float freely.Change in band: Before the floating of the peso, the fluctuation band within which the peso fluctuated vis-à-vis the U.S. dollar was widened white retaining its current rate of daily depreciation, moving the ceiling of the exchange rate band to N$4.0016per US$1.
NepalPegged: Currency Composite: OtherPegged: Single Currency: Other1997:S2The Nepalese rupee is determined by linking it closely to the Indian rupee. This reclassification reflects current information and not the result of a change in policy.
NicaraguaMore Flexible: Other Managed Floating1W5Q4Unification of exchange rate: The dual exchange rate system was unified and the existing crawling peg system was maintained.
NigeriaPegged: Single Currency: U.S. dollarMore Flexible: Managed Floating1995:Q1Dual exchange system: A dual exchange rate system was introduced comprising the pegged official exchange rate and a floating and more depreciated interbank market exchange rate, with periodic central bank intervention by sales to end users through banks.
NorwayMore Flexible: independently FloatingMore Flexible: Other Managed Floating1995:Q2Monetary policy was aimed at maintaining a stable exchange rate against European currencies, based on the range of the exchange rate maintained since the krone was floated in 1992.
PakistanMore Flexible: Other Managed Floating1995:Q4Devaluation: The exchange rate of the rupee was devalued by 7%.
1996:Q3Devaluation: The rupee was devalued by 3.7%.
1996:Q4Devaluation: The rupee was devalued by 7.9%.
1997:S2Devaluation: The rupee was devalued by 8.7%.
Papua New Guinea1994:Q3Devaluation: The kina was devalued by 12% against the basket of currencies against which it was pegged.
Pegged; Currency Composite; OtherMore Flexible: Independently Floating1994:Q4The exchange rate was determined by market forces centered on a twice-daily interbank auction with the central bank acting as a broker.
PhilippinesMore Flexible: Independently Floating1997:S2In July, the authorities announced the floating of the peso. This, did not imply a rectarification since Philippines was already classified as Independently Floating even though they had a de facto peg to the U.S. dollar.Introduction of a band: In October, the Bankers’ Association of the Philippines introduced a 4% volatility band (comprising the three tiers) in an attempt to stabilize the market. The first band was set at ±2%, the second at ±3%. and the third at ±4%. The band was further widened to ±6% on January 7, 1998 and abandoned on March 6.
PolandMore Flexible; Other Managed Floating1994;Q3Change in rate of crawl: The zloty’s monthly rate of depreciation under the existing crawling peg exchange rate arrangement was reduced from 1.6% to 1.5%.
1994:Q4Change in rate crawl: The monthly rate of depreciation of the zloty against the basket of currencies, to which it is pegged was reduced to 1.4%.
Change in rate of crawl: The rate of the monthly depreciation of the zloty against the currency basket was reduced to approximately 1.2% and the central bank temporarily widened the bid-ask spread around its central exchange rate from ±0.5% to ±2%.
1995:Q1Introduction of band: A system that allows the zloty to fluctuate by ±7% on either side of a predetermined central exchange rate was introduced.
1995:Q2Change in rate of crawl: The crawling peg arrangement under which the zloty±s central exchange rate was devalued by 1.2% a month, and the composition of the currency basket was maintained The above change removed the multiple currency practice.
1995:Q4Revaluation: The zloty’s central exchange rate was revalued to the prevailing level of the market rate, representing an appreciation of 6.4% against the basket of currencies. The market rate was allowed to appreciate to 2.5% above the new central rate. The zloty continued to be devalued at a rate of 1.2% a month against the basket of currencies, with the ±7% band around the mid-rate also maintained.
1996:Q1Change in Rate of Crawl: The zloty’s monthly rate of depreciation was reduced from 1.2% to 1%.
1997:S2Devaluation: The exchange rate is adjusted under a crawling peg policy at a preannounced monthly rate of 1% and within the ±7% band (widened to ±l0% on February 1998. simultaneously with a reduction in the crawl rate to 0.8%. After the February 1998 action, the authorities allowed the zloty to fluctuate widely within the exchange rate band.
PortugalFlexibility Limited vis-à-vis a Single Currency or Group of Currencies: Cooperative Arrangements1995:Q1Devaluation: The bilateral exchange rates of the escudo against other participating currencies in the ERM were adjusted. In this context, the exchange rate of the Portuguese escudo was devalued by 3.5%.
RomaniaMore Flexible: Independently Floating1994:Q2Change in spread: The mechanism of exchange rate determination in the auction market was modified to one based on the principle of market clearing. The spread between the auction rate and the exchange bureau rate was eliminated.
More Flexible: Independently FloatingMore Flexible: Other Managed Floating1997:S2Exchange rate regime was reclassified to reflect the central bank’s de facto practice of intensified foreign exchange intervention to engineer a depreciation of 2–3% a month.
RussiaMore Flexible: Independently FloatingMore Flexible: Other Managed Floating1995:Q2An exchange rate band regime for the Russian ruble was introduced whereby the ruble can fluctuate between Rub 4.300 and Rub 4,900, implying an exchange rate band spread of ±14%
1995:Q4Change in band: The exchange rate band within which the ruble fluctuates was changed from Rub 4,300–4,900 to Rub 4,550–5,150 per US$1.
1996:Q3Change in band: The central bank adopted a sliding band regime, whereby the lower and upper band were initially set at Rub 5,000–5,600 per US$1. The band was expected to shift to Rub 5,600–6,100 by December, The band is intended to slide at a predetermined rate of 1,596 a month, with a width maintained at Rub 600 per US$1. The central bank will announce the lower and upper bands on this basis each calendar day. The central bank is committed to maintaining the rate within the sliding band, but there is no predetermined rate of crawl for the actual exchange rate.
1996:Q4Change in band: The authorities changed the band (o Rub 5,750–6,350 per US$1. The band is intended lo depreciate at just over 4% a year, with the margins around the midpoint maintained around ±5%.
1997: S2Change in band: Authorities announced on November 10 a new exchange rate policy for 1998–2000, in which the central exchange rate will be set at 6.2 new rubles per US$1. with a margin of ±15% (compared with ±5% at end-1997 under the sliding corridor policy). At the same lime, the authorities would seek to maintain the current policy of a gradual crawl within the new horizontal band.
RwandaPegged: Currency Composite: SDRMore Flexible: Independently Floating1995:Q1A new liberalized exchange rate system was introduced.
São Tome and PríncipeMore Flexible: Other Managed FloatingMore Flexible: Independently Floating1994:Q4The exchange rate was allowed to be determined by market forces.
SeychellesPegged: Currency Composite: SDRPegged: Currency Composite: Other1996:Q2The peg of the Seychelles rupee to the SDR was replaced with a peg to the Seychelles Trade and Tourism Weighted Basket. The basket includes U.S. dollar, pound sterling. French franc. South African rand. Singapore dollar, deutsche mark, Italian iira, and Japanese yen.
1997:S2Change in basket: The weights of the eight currencies that make up the Seychelles Trade and Tourism Weighted Basket were revised.
Slovak RepublicPegged: Currency Composite: Oilier1994:Q3Change in basket composition: The composition of the basket of currencies to which the koruna is pegged was charged to the U.S. dollar and the deutsche mark.
1996:Q1Change in band: The central bank widened the foreign exchange band within which the koruna fluctuates from ±1.5% to ±3%.
1997:S1Change in band: The foreign exchange band was widened from ±5% to ±7%.
Socialist People’s Libyan Arab JamahiriyaPegged: Currency Composite: SDR1994:Q4Change in band: The margins of the band within which the exchange rate of the dinar fluctuates against the SDR was widened from ±25% to ±47%.
Solomon IsjandsPegged: Currency Composite1997:S2Deraiuatifm: In December 1997, the Solomon Islands dollar was devalued by 20%.
Pegged: Currency CompositeMore Flexible: Other Managed Floating1997:S2Exchange rate arrangement has been reclassified to reflect the actual de facto practice of gearing the exchange rate policy toward maintaining competitiveness with periodic monility adjustment of the exchange rate based on inflation differentials, terms of trade movements, and overall external position.
SomaliaMore Flexible: Other Managed FloatingMore Flexible: Independently FloatingThe value of the shilling was freely determined
South AfricaMore Flexible: Independently Floating1995:Q1Unification of exchange rate: The financial rand scheme was abolished and the dual exchange rate of the South African rand was unified.
SpainFlexibility Limited vis-à-vis a Single Currency or Group of Currencies: Cooperative Arrangement1995:Q1Devluation: The Spanish million lies and the member slates of the European Union agreed to adjust the central exchange rate of the peseta and set new central exchange rates in the ERM. As a result the bilateral exchange rates of the peseta against other participating currencies of the ERM were devalued by 7%.
Sudan1994:Q2Unification of exchange rate: The dual exchange system was abolished and a new unified exchange rate determined in an interbank market composed of Sudan’s 27 commercial banks was adopted.
More Flexible: Other Managed FloatingMore Flexible: Independently Floating1995:Q4A market-determined exchange rate was introduced.
1996:Q1Multiple exchange rares: As a result of strong monetary expension and the inherent weaknesses in the operation of the exchange rate system the unified market-determined exchange rate system was segmented into various types of exchange rates.
More Flexible: Independently FloatingMore Flexible: Other Managed Floating1996:Q3The foreign exchange market was reunified.
1997:S1Unification of exchange rate: The multiple exchange tales were unified and the exchange rate system was changed whereby a Joint Committee and the central bank determine daily The exchange rate band, within which each dealer freely trades. In March the spread between the upper limit of the trading band and the accoums-to-accounts rate was reduced from 20% to 16%.
1997:S2Change in band: The exchange rate band was widened from ±0.3% to ±2%.

Change in spread: The spread between the accounts-to-accounts market and official dealer exchange rates was reduced in steps, from 23.1% at end-1996 to 14.4% at end-May 1997 to 12.7% at end-June, and to 7.3% at end-1997. The government announced that it would continue to reduce the spread between the joint committee rate and free market rate to a maximum of 6% by end-March 1998.
SurinamePegged: Single Currency: U.S. dollarMore Flexible: Other Managed Floating1994:Q3All multiple exchange rates were unified and the new exchange rate was managed flexibly by the central bank with participation in the unified market from time to time.
More Flexible; Other Managing FloatingMore Flexible: Independently Pleating1994:Q4The exchange rate system was unified and the exchange rate was allowed to be determined by market forces.
More Flexible: Independently FloatingMore Flexible: Other Managed Floating1995:Q4The central bank sets a daily exchange rate taking into account the level of the interbank market exchange rate over the previous five days, resulting in the official exchange rate deviating from the closing interbank rate of the previous day by more than 2%. Consequently a multiple currency practice arose as the spread between these two exchange rates varies by more than 2%.
Syrian Arab RepublicPegged: Single Currency: U.S. dollarSyria maintains three official and two unofficial exchange rates.
1996:Q1Devaluation: The budget accounting exchange rate was devalued by 53.3%. All other exchange rates remained unchanged.
1996:Q3Devaluation: The exchange rate applied to transactions with neighboring countries was devalued by 2.3%.
1997:S1Devaluation: The budges accounting exchange rate was devalued by 34.3%
1997:S2Devaluation: The exchange rate applied to transactions with neighboring countries was devalued by 3.3%.
TajikistanPegged: Single Currency: OtherMore Flexible: Independently Floating1995:Q2The Tajik ruble was introduced and became the sole legal tender. The exchange rate of the Tajik ruble against the U.S. dollar is determined at weekly foreign exchange auctions.
Mote Flexible: Independently FloatingMore Flexible: Other Managed Floating1997:S2Official exchange rate of the central bank is set based on the results of the auctions held at Tajik Interbank Foreign Currency Exchange (TICEX). Interbank and retail market rates are freely determined, but generally based on and close to the TICEX rate. The reclassificalion reflects this information.
ThailandPegged: Currency Composite: OtherMore Flexible: Other Managed Floating1997:S2Due to strong pressure in the foreign exchange market the authorities floated the Thai bahi.Multiple currency practice: A two-tier currency market was established with separate rates for investors buying baht in domestic markets and investors buying baht in markets overseas.
TurkmenistanPegged: Single Currency: U.S. dollar1994:Q4Devaluation: An exchange rate applied to individual transactions was introduced set at man at 220 per US$1.

Unification of Exchange Rate: The special exchange rate of mansit 10 per US$1 was unified at the commercial exchange rate of manat 75 per US$I, representing a devaluation of 86.7%.
1995:Q3Devaluation: The two exchange rates for the manat were devalued as fallows: the official exchange rase was devalued by 62.5% and the commercial or cash rate was adjusted by 61%.
Pegged: Single Currency: U.S. dollarMore Flexible: Other Managed Floating1995:Q4The dual exchange rate was unified at the market exchange rate level.
1996QIDevaluation: In January the official excharge rate was devalued from manat 200 to 2,400 per US$1: in February it was appreciated and fixed at manat 1,000 per US$1: and in April il was devalued 10 manat 3.000 per US$I in line with the exchange rate in the bank market.
1997:S2Multiple currency practice: The unification of the exchange rate carried out in 1996 was reversed when the official rate that applies to the bulk of foreign exchange transactions was fixed at a substantially more appreciated level than the commercial bank rate. The exchange rate regime was a very strictly managed one, with the exchange rate being fixed during May 1997–April 1998. This practice was discontinued in April 1998, but a new gap between the emerged subsequently, widening to more than 30% by itie end of the year.
Ukraine1994:Q4Unification of Exchange Rate: The official exchange rate applied to the surrender requirement was unified with the auction exchange rate. Two other exchange rates remained in effect: the cash market exchange rate and the noncash parallel market exchange rate.
More Flexible: Independently FloatingMore Flexible: Other Managed Floating1995:Q4The central bank intervenes periodically to smooth fluctuai ions of the exchange rate of the karbovanels.
1996:Q3New currency: The karbovanets were replaced with the hryvnia as national currency at a rate of Krb 100,000 per HRV1. At the same time, the authorities adopted an official exchange rate of HRV 1.76 per US$I and intervened to keep the rate uncharged during the two-week period allowed for the currency conversion.
1996:Q4Adoption of band: The practice of de facto fixing the exchange rate was abandoned and the authorities let the exchange rate move within the informal band of HRV 1.7– HRV 1.9 per US$I.
1997:S2Change in band: The fluctuation band for the hryvnia was formalized at HRV 1.7–1.9 per US$1.
UruguayMore Flexible: Other Managed Floating1996:Q2Change in rate of crawl: The rate of depreciation of the peso within its exchange rate band was lowered from 2% vis-à-vis the U.S. dollar to 1.8% a month.
1996:Q4Change in rate nf crawl; The rate of depreciation of the peso within its exchange rate band was lowered to 1.4%
1997:S2Change in rate of crawl: The rate of depreciation of the exchange rate and reduced to 0.8% a month by end-1997.
Uzbekistan1994:Q3



1994:Q4
New currency: A new national currency was introduced, the sum.

Unification of exchange rare: The official and cash exchange rates were unified at sum 22 per US$1.
More Flexible: Independently FloatingMore Flexible: Other Managed Floating1995:Q4The official exchange rate is determined daily, either at the auctions, or based on the weighted average exchange rates at which authorized banks purchase and sell foreign exchange in the interbank market on days without auctions. The central bank manages the official exchange rate of the sum through the amount of foreign exchange supplied to the foreign exchange auctions.
1996:Q2Change in spread: The spread between the auction-determined official rate and the cash rate at the exchange bureaus was widened from 1½-3% to 8½-19% for buying from customers, and from 2½-4% to 11-21½% for selling to customars.
1997:S1Multiple currency practice: A system of multiple currency practices was introduced.
Venezuela1994:Q2The exchange rate was set at Bs 170 per US$1.Pace of depreciation: The rate of depreciation of the crawling peg exchange rate was accelerated and a dual exchange market emerged.
More Flexible: OlherPegged: Single1994:Q3
Managed FloatingCurrency: US. dollar1995:Q4Dual exchange rate system: The central bank temporarily introduced an exchange rate applicable to tourism and credit transactions.
Devaluation: Subsequently, the official exchange rate of the bolivar was devalued by 41.38% and made applicable to all transactions, thus effectively unifying the temporary exchange rate system. A parallel exchange rate remained in place.
Pegged: Single Currency: U.S. dollarMore Flexible; Other Managed Floating1996:Q2In April, the exchange rate system was unified under a managed float exchange rate arrangement.Introduction of a band: In July, the central bank introduced a system of exchange rate bands. The initial central rate was set at Bs47O per US$I, and the width of the band at ±7½%. The central rate is adjusted in line with the inflation larget for the fourth quarter of 1996 (1½% a month).
1997:S1Change in band: The authorities announced the exchange rate band system would be maintained but the central exchange rate was revalued from Bs514 to Bs472 per US$I. The newcentral exchange rate would depreciate at a monthly rate of 1.32%.
1997:S2Change in banti: The authorities announced that the exchange rate band system would be maintained but the central rate would be revalued from Bs517 to Bs498 per US$1. The new central rate would depreciate at a monthly rate of 1.16%.
VietnamMore Flexible: Other Managed Floating1996:Q4Change in band: The fluctuation band for the dong was widened to ±1% from ±O.5% around the central exchange rate.
1997:SIChange in band: The band was widened from ±1% to ±5%.
1997:S2Change in band: The trading band for the dong was widened from ±5% to ±10% in October 1997. (In February 1998, the band width was maintained, but the central rate around which the dong fluctuates was devalued by about 5.3%.)
Yemen. Republic of1995:Q1Change in multiple exchange system: The number of exchange rates in effect was reduced from 5 to 3.
Pegged: Single Currency: U.S. dollarMore Flexible: Independently Floating1996:QIA two-stage approach to unification of the foreign exchange markets was adopted and the currency was floated.
1996:Q3Unification of exchange rate: The dual exchange rate system comprising the official and the floating exchange rates was unified.
ZimbabwePegged: Currency Composite: OtherMore Flexible: Independently Floating1994:Q2The dual exchange rate system introduced in January 1994 was unified.
Table A10.Exchange Rate Bands in Selected Countries
CountryPeriodRate of CrawlBand WidthFlexibility in the BandPeg Currency
ChileAug. 1984—presentBackward looking: The central parity is adjusted with announced daily depreciations for the coining month based on the difference between past domestic and forecast foreign inflation; a real appreciation of 2% was built into the formula to compensate for fast relative productivity growth in November 1995.Widened from ±0.5% initially to ±12.5% in February 1997 in Five steps.Make; use of the full band width with the exchange rate moving within the band flexibly.Central rate set vis-à-vis a basket
ColombiaNov. 1991-present (formally in Jan. 1994)Forward looting: Rate of crawl set at 11% initially and raised to 13.6% at end-1994 and 15% in 1997. Crawl rate is announced 10 days in advance (in practice a year); the rate is chosen so as to hold real exchange rate constant if consistent with official inflation target; crawl has been insensitive to actual inflation.±7%Intervention frequent but small, aimed at reducing volatility within the band, also from time lo time to defend it; also supported by capital controls.U.S. dollar
EcuadorDec. 1994-presentForward looking: A preannounced crawl rate. The rate of crawl was accelerated from 12% initially to 21% in steps in 1995–97.Widened in steps from ±2% initially lo ±10% in late 1995.In 1997, it was announced that market rate will be kept within an inner band an each side of previous day’s exchange rate. During first half, the rate moved close to band center.U.S. dollar
HondurasApril 1997-presentForward looking: The base rate is devalued at a preannounced rate.Widened from ±1% to ±5% (then to ±7% in March 1998).US dollar
HungaryDec. 1994-presentForward looking: Rate of crawl is preannounced. The rate of crawl was reduced from 1.9% a month to 1.0% in four steps in 1995–97.±2.25%Central rate set vis-à-vis a basket
IndonesiaJan. 1994-Aug. 1997Backward looking: Band depreciated gradually, broadly lo offset inflation differential vis-à-vis trading partners. The rate of crawl was reduced from 5.6% a year to 3.5% in response lo persistent upward pressure on the exchange rate.Widened from R/S 30 to R/S 44 (±2%), then to ±12% in 7 steps.The rate moved within the band flexibly until mid-1996, and until mid-1997 hit more appreciated edge under upward pressures; the band was abolished under downward pressures.Band vis-à-vis a basket
IsraelJan. 1992-presentForward looking: The rate of crawl is chosen to equal the difference between target inflation rate and the expected average inflation rate of countries in the basket. The crawl rate was adjusted twice in 1993–94 to consolidate success in reducing inflation and in 1997 (slowdown in the crawl of the lower band with unchanged crawl of the upper band) in response to appreciation pressures.Widened from ±5% to ±7%, then only the upper band was widened to 21%.Heavy sterilized intervention directed to defending an unpublished inner band movable at the discretion of the central bank; after mid-1995, greater flexibility has been allowed within the band.Central rate set vis-à-vis a basket
MexicoNov. 1991-Dec. 1994Forward looking: No announced central parity; lower and upper bands were announced daily: the lower band was fixed, while upper band was allowed to depreciate at a preannounced rate based on projected domestic and foreign inflation.Gradual widening with a fixed lower and crawling upper band.Fluctuations of the exchange rate were restricted to a narrow inner band through heavy intramarginal intervention.U.S. dollar
PolandMay 1995-presentForward looking: The central rase is allowed to depreciate at a fixed rate set at a smaller rate than projected inflation differentials: the crawl rate adjusted from 1.2% a month to 1.0% in 1996, and to 0.8 percent in February 1998.±7% Widened lo ±10% in February 1998.Fluctuations of the zloty were restricted to a narrower band through intramarginal intervention. In 1997, the zloty was allowed to fluctuate fairly widely in the band.Central rate set vis-à-vis a basket
RussiaJuly 1996-Dec. 1997Forward looking: The band is intended to slide at a pre-determined rate of 1.5% a month, The rate of crawl was reduced in end-1996. In November 1997, the central bank announced a new polity for 1998–2000 in which the central rate would be fixed at 6.2 new rubles per $1 with a horizontal band of ±15%.About ±5%To stabilize the exchange rate on a short-term basis, the central bank announces each day a narrow band at which it is willing to transact.U.S. dollar
Sri LankaMar. 1995-presentForward looking: The middle rate of the bard is announced daily, with the band shifting periodically at a given rate.±1Generally flexible within the band with intervention at margins.U.S. dollar
UruguayOct. 1992-presentFonrard looking: The rate of crawl is set at a forward-looking predetermined rate: the rate was lowered from 2% initially to 1.4% in two steps in 1996.±3.5%Little intervention at margins. The exchange rate was allowed to be close to the most appreciated band.U.S. dollar
VenezuelaJuly 1996-presentForward looking: The central rate to be adjusted in line with the in dation target for the upcoming quarters; in early 1997 the crawl rate was set at 1.32% a month, reduced to 1.16% in the third quarter of 1997, and increased again to 1.28% in early 1998.±7.5Authorities’ intention is lo keep the currency close to band center but to allow more flexibility if needed to deal with capital inflows.U.S. dollar
Sources: Piero Ugolini, “Crawling Exchange Rate Bands Under Moderate Inflation” (unpublished: Washington: International Monetary’ Fund): John Williamson. The Crawling Band as an Exchange Kate Regime: Lessons from Chile. Colombia, and Israel (Washington: Institute for International Economics, October 1996).
Table A11.Exchange Rate Regimes and Indices of Exchange and Capital Controls, 1996
CountryExchange Rate RegimeCurrent AccountCapital AccountExchange Regime
KazakhstanManaged float0.300.950.62
RussiaManaged float (crawling band)0.270.910.59
Côte d’lvoireSingle currency peg (CFA franc)0.340.820.58
ChileManaged float (crawling band)0.220.890.56
IndiaIndependent float0.220.870.55
ChinaManaged float (de facto horizontal band)0.330.730.53
TunisiaManaged float (crawling peg)0.210.810.51
MoroccoBasket peg0.270.720.49
PakistanManaged float (de facto peg)0.310.660.48
BrazilManaged float (de facto horizontal band)0.310.600.46
South AfricaIndependent float0.290.560.43
Korea, Rep. ofManaged float (de facto horizontal band)0.100.700.40
PolandManaged float (crawling band)0.120.690.40
ThailandManaged float0.170.630.40
IsraelManaged float (crawling band)0.160.540.35
IndonesiaManaged float (crawling band)0.180.500.34
HungaryManaged float (crawling band)0.100.570.33
PhilippinesIndependent float (de facto peg)0.160.470.32
TurkeyManaged float (crawling peg)0.160.360.26
EgyptManaged float (de facto peg)0.120.300.21
MexicoIndependent float0.050.360.21
Czech RepublicManaged float0.040.330.19
JapanIndependent float0.090.160.12
Saudi ArabiaLimited flexibility vis-à-vis single currency0.030.210.12
AustraliaIndependent float0.040.200.12
ArgentinaSingle currency peg (currency board)0.030.190.11
UruguayManaged float (crawling band)0.090.130. 11
KenyaIndependent float0.050.170. 11
LatviaManaged float (de facto peg)0.100.100.10
FranceLimited flexibility with in a cooperative arragement0.040.160.10
United StatesIndependent float0.050.130.09
SpainLimited flexibility within a cooperative arrangement0.040.110.08
ItalyLimited flexibility within a cooperative arrangement0.100.060.08
CanadaIndependent float0.090.060.07
GreeceManaged float (crawling peg)0.060.060.06
New ZealandIndependent float0.020.090.05
GermanyLimited flexibility within a cooperative arrangement0.040.070.05
DenmarkLimited flexibility within a cooperative arrangement0.020.070.05
United KingdomIndependent float0.030.070.05
NorwayManaged float0.010.050.03
NetherlandsLimited flexibility within a cooperative arrangement0.050.010.03
Memorandum items
Mean0.130.390.26
Standard deviation0.100.300.20
Minimum0.010.010.03
Maximum0.340.950.62
Source: Based on the IMF’s Annual Report of Exchange Arrangements and Exchange Restrictions (Washington, 1996).
Table A12.Foreign Exchange (FX) Market Development. Mid-1997
CountryExchange Rate DeterminationAuction MarketInterbank MarketBureau MarketParallel MarketForward Market
Afghanistan, Islamic State ofOfficial rate is maintained by the central bank and a commercial rate is set by the government.Not applicable.Yes.No.
AlgeriaDetermined in the interbank market.No margin limits are established on buy-sell rates in the interbank market.Not applicable.Not available.Authorized banks are permitted to provide forward cover to residents (not active).
AngolaDetermined in fixing sessions conducted by the central bank from time to time.Dominant market; all transactions must take place at the official fixing rate.Not active; exchange houses are no longer allowed to deal at market determined rates but at rates set for commercial banks.Yes.No.
ArmeniaAt the midpoint of the previous day’s buy-sell rates in interbank and auction markets.Decreasing role in the total FX market.Dominant market.Active.No.No restrictions for forward cover against exchange risk operating in official or commercial banking sectors.
AzerbaijanSet at daily FX auctions.Dominant marketInterbank trading is allowed since August 1997.Used for cash exchange; not very active.Not available.No.
BangladeshPegged to a weighted basket of currencies of the main trading partners.Authorized banks are free to set their own buying/selling rates For the U.S. dollar and the ratio of other currencies based on cross rates in international markets.Not applicable.Not available.Forward contracts are available front authorized banks, covering periods of up to 6 months for export proceeds and import payments and covering up to 3 months of remittances of surplus collection of foreign shipping companies and airlines. Currency swaps and forward exchange transactions are permitted when they are against underlying approved commercial transactions.
BelarusSet on the basis of the auction rate.Dominant market, although it is believed that most trade and foreign exchange transactions were carried out at more depreciated rates; such as those on the Moscow parallel market and the cash market.Limit on transactions; volume was lifted in end-1996, but activity remains limited due to restrictions on banks’ ability to determine the exchange rate.Serves as a channel for retail transactions; not very active.Yes.Yes, regulated by the same rules as the spot market.
BoliviaDetermined at auctions held daily by Ihe central bank.Dominant market, with the auction rate applying to all FX transactions.ActiveNot available.No.
Bosnia and HerzegovinaFixed under the currency board.No.Commercial banks are free to buy/sell FX with the central bank communicating exchange rate at least once a day.Active.Not available.No.
BrazilDetermined within a band established by the central bankNo.Transactions are carried out by banks, brokers, and tourist agencies authorised to deal in FX.Active; tourist agencies and brokers deal only in banknotes and traveler’s checks.A small market exists.Banks are permitted to trade FX without restriction on forward basis but must be settled within 360 days.
BruneiFixed under the currency board.NoBanks are free to deal in all currencies with no restrictions on the amount, maturity or transactions type.Not applicable.No.No; but FTX risk can be hedged in terras of Singapore dollars by resorting to facilities available in that country including currency futures and options in Singapore markets.
BulgariaFixed under the currency board.No.Yes, well developed.Active.Not available.No.
BurundiPegged to a basket of currencies.No.Commercial banks are authorized to buy and sell in their own account and on behalf of their customers within ±1% around the middle rate set by the central bank.Not applicable.Not available.Commercial banks and exporters through their banks or costomers can borrow FX to hedge against exchange risk.
CambodiaOfficial rate determined by the central bank.No.Exchange transactions take place at the market rate, with commercial banks free to buy and sell FX at their own rates.Active: FX dealers are permitted to buy and sell banknotes and traveler’s checks at the market rate.Yes.no.
ChileDetermined within the crawling band mechanism.No.Formal FX market consists of commercial banks and exchange houses and other entities licensed by the central bank: economic agents are free to negotiate rates in both formal and informal markets.Active.Not available.Yes.
ChinaDetermined in the interbank market with the central bank announcing a reference rate based or the weighted average price of FX in the previous day.No.All FX transactions are conducted through a nationally integrated electronic system for interbank FX trading, electronically linked with 25 FX trading centers located in major cities.Active.Not available.No; however, there are proposals with the central bank to introduce forward contracts on the yuan.
ColombiaDetermined within the crawling band mechanism.No.All FX transactions take place at market-determined exchange rates effected by FX market intermediaries, excluding teller transactions.Not applicable.Not available.Residents may buy forward cover against exchange risk for FX debts in convertible currencies and to deal in over-the-counter forward swaps and options.
Congo, Democratic Republic of theDetermined in the weekly fixing sessions, based in part on the exchange rates prevailing in the unofficial market, During most of 1997, there were separate fixing sessions in various provinces, resulting in premium.; or discounts relative to the official exchange rate.Yes; but limited activity.Yes: but limited activity: a large share of transactions lake place on the informal market, or are merely brokered by commercial banks.Yes.Yes.No.
Costa RicaExchange rate determined in the interbank market.No.FX trading occurs in an organized electronic market where central bank and authorized dealers participate. Also lakes place between authorized dealers outside the organized market.Not applicableNot available.No.
CroatiaExchange rate is set in the interbank market; the central bank sets intervention rates to smooth undue fluctuations.Yes. The central bank intervenes through an auction market that it convenes periodically for that purpose.Dominant market: central bank applies intervention rates to transact ions with banks outside the interbank market. Lack of trust between banks due to inadequate procedures to assess counterparty risk hampers interbank market activityNo.No.The central bank has provided on occasion swap facilities at par for banks in a very limited forward market.
CyprusPegged to a basket of currencies within a ±2.25% band.No.Subject to certain limitation, including a limit on buy-sell spreads, authorized dealers (banks) are free to determine and quote their own rates.Not applicable.Not available.Authorized dealers may trade in the forward market with their customers, and purchase official forward cover from the central bank for exports and imports. There are limits on forward margins that dealers can change.
Czech RepublicDetermined by supply and demand conditions with occasional central bank intervention.No.Commercial bunks set their in exchange rites that are applied to transactions with their customers.Not applicable.Not available.Yes. Develiped over-the-counter forward exchange market.
Dominican RepublicDual exchange rate system. Since March 1997, the official exchange rate has been held fixed while the market rate has been determined under a managed float.No.Dominant market.Not applicable.Not available.No.
EcuadorDetermined within a crawling band mechanism.No.Banks and other financial institutions conduct FX transactions within the esiabtished band.Not applicable.Not available.Authorized banks and other financial institutions may conduct forward swaps and option; and transactions in other financial derivative instruments, subject to supervision and control.
EgyptDetermined in the FX market.No.There is a free FX market in which authorized FX dealers are permitted to operate.Authorized nonbank FX dealers may operate in the free market, buying and sealing hanknoles, coins, traveler’s checks on their own account, in cash or through their accounts with authorized banks: they may broker FX operations with limitationNot available.Authorized hanks may conduct forward transactions for their own account at freely derermined rates, with no prior approval from the central frank.
EI SalvadorDetermined as a simple average of exchange rates set by commercial banks and exchange houses on the pervious day under de facto peg.No.Active.Not available.No.
EritreaOfficial rate is the marginal auction rate and preferential rate is fixed by the authorities.Not applicable.Yes.No.
EstoniaFixed under the currency board.No.Competitive.Not applicable.No available.Yes.
EthiopiaDetermined on the weekly central hank auctions.Quantities to be sold at weekly auctions are set by the central bank.Foreign exchange bureaus operate only within the commercial banking system and are allowed to engage in transactions related to travel, health, education, and acquisition of publications (within specified limits). The activity in this market, however, is quite insignificant.Yes: the premium, however, has been reduced significantly and is currently close to zero percent.No.
FijiPegged against a basket of currencies.No.Authorized FX dealers are allowed to transact among themselves within a market band of ±1.2%; however, the market is very small and thin with most banks preferring to deal with the central bank at a risk-free, predetermined rate.Restricted FX dealers deal only in travel - related transactions, and money changers exchange traveler’s checks and FX into Fiji dollars.NoForward exchange facilities are provided by authorized dealers for trade transactions with certain maturities; the activity in this market, however, is quite insignificant.
Gambia. TheDetermined in the FX market.No.Commercial banks and FX bureaus are free to trade among themselves, with the central bank or their customers, at freely negotiated rates.Active.Not available.No.
GeorgiaSet on the basis of daily auction rate.Dominant marketRelatively small (16% of turnover), but growing.Used for cash transactions.Not available.No.
GhanaDetermined in the interbank market.No.Dominant market for large scale noncash transactions.Active.Yes.No.
GuatemalaDetermined in the interbank market.No.Not applicable.Not avai labte.No
GuineaDetermined in the interbank market.Since 1994:Q4 the exchange rate is freely determined in the interbank market between authorized dealers and their clients or among dealers themselves.Not applicable.Not available.No.
Guinea-BissauPegged against the French franc.No.Consists of two commercial banks and FX bureaus.Active.Not available.No.
GuyanaDetermined freely in the cambio marketNo.Average quotations of the three Largest dealers in the cambio market determine the exchange rate.Not applicable.Not available.Official FX cover as exchange rate guarantees provided to certain deposits in dormant accounts; no guarantee for deposits made after 1989.
HaitiDetermined in the FX market.No.Commercial batiks quote buy-sell rates for certain currencies other than the U.S. dollar based on buy-sell rates of the U.S. dollar in ivorld markets. The market is dominated by money changers: banks follow this market.Active.Not available.No.
HondurasDetermined in the FX auctions.Auction system replaced interbank market in 1994:Q2. Banks and exchange houses must sell their daily FX purchases to the central bank.Replaced by the auction system in 1994:Q2.Active; amount that can be obtained from the auctions is subject to limitations.Not available.No.
Hong Kong SARFixed under the currency board.No.Exchange rate of the HK dollar is set in Ihe FX market at freely negotiated rates for all transactions except for note issuing.Not applicable.Not available.Operated on private sector initiatives.
HungaiyDetermined under ihe crawling band system.No.Licensed banks are free to determine their own margins wirhin the established crawling band.Not applicable.Not available.Commercial banks may engage in forward transactions at rates negotiated freely between banks and their customers.
IcelandFixed on the basis of indicative prices quoted by mattet participants each trading day or on actual trading prices.Daily fixing meetings used to set the exchange rate was abandoned in July 1997.Since July 1997, organization of the FX market was changed to abandon daily fixing meetings and to allow market participants to act as raarkel makers and make binding offers.Not applicable.No.There is no organized forward market but forward contracts can be freely negotiated in all currencies.
IndiaDetermined in the interbank market.No.The market is transactions driven in part because capital controls limit operations of authorized dealers. Lack of adequate up-to-date information on activities in the FX market reduces transparency.Not applicable.Not available.Authorized dealers, may deal forward in certain currencies. Forward deals against rupee with banks abroad are prohibited, Official cover for certain currencies.
IndonesiaDetermined under a free floating system based on supply and demand conditions.No.Not applicable.Not available.Forwards and swaps conducted at rates set bilaterally between the central bank and the banks concerned; official forward cover.

In September 1997, forward foreign exchange contracts offered by domestic banks to nonresidents were limited to US$5 million a customer.
JamaicaDetermined in the interbank market.No.Foreign exchange market is operated by the commercial banks, other authorized dealers, cambios, and the cental bank.Active.Not availableYes, but currently inactive.
JordanPegged to SDR (de facto to the U.S. dollar).No.Not applicable.Not available.Not availableLicenced banks may transact with no limit with their customers on forward basis for imports; official forward facility for very specific projects.
KazakhstanDetermined at the daily auction and in the interbank market.Decreasing role in the total FX market.Dominant market (about two-thirds of total transactions).Fairly significant (about 2,000 licenced bureaus).Not available.Foreign exchange futures are qnoted at the foreign exchange auction.
KenyaDetermined in the interbank market.No.FX bureaus are authorized to deal in cash and traveler’s checks.Not available.Commercial banks may engage in forward transactions at market-determined rates in any currency, amount, or period.
Kyrgyz RepublicDetermined in the twice-weekly FX auctions (reduced to once a week as of January 1998).Dominant market, but share is declining.Deveioping steadiiy (39% in first half of 1997), though lack of trust among banks constrained somewhat further development. Interbank market captured about 48% of the total central bank foreign exchange sales in 1998, Q1. compared wiih41% in 1997 and 27% in 1996.Not applicable.Not available.No.
Lao People’s Democratic Re publicDetermined in the interbank market.No.In practice a large stale owned commercial bank which is the dominant transactor in the official exchange rate market sets the exchange rate.FX bureaus are free to buy-sell FX at freely determined rates provided the spread between buy-selt rates is below 2%.Not available.No.
LatviaPegged in terms of SDR.No.Dominant market: trade takes place through a telephone system.Not applicable.Not available.No
LebanonDetermined in the market within upper and lower limils of ±0.1 percent around a central parity on Lebanese pound-U.S. dollar rate, which follows a path that is announced by the central bank. Frequent central bank interventionsNo.Banks are allowed to engage in spot transactions in any currency except for Israeli currency.Active.Not available.Forward transactions are permilted only for foreign trade.
LiberiaPegged to the U.S. dollar.No.Commercial banks charge high premiums for sales of offshore funds; other nonbank FX dealer are permitted to buy and sell currencies other (han the U.S. dollar at market determined rates.Active.Yes.No
LithuaniaFixed under the currency board.No.Dominant market.Not applicable.Not available.Yes.
Macedonia, former Yugoslav-Republic ofDetermired under managed floating with a de facto peg to the deutsche mark.No.The wholesale market in which the central bank, commercial banks, and enterprises operate.FX bureaus owned and operated by commercial banks, enterprises, and natural persons. May hold FX positions of 100% of the net FX purchases in preceding 10 days.Forward FX contracts for trade transactions are permitted the central bank may conclude forward FX contracts.
MadagascarDetermined freely in the official interbank market.No.Introduced in 1994:Q2. French franc is the only currency quoted in this market, and the exchange rates of other currencies are determined or the basis of cross rates in trie Paris FX market.Not applicable.Not available.Limited arrangements for forward cover against exchange risk: exporters can buy FX 120 days prior lo settlement from their banks.
MalawiDetermined on the basis of supply and demand.No.Authorized dealer banks may buy-sell foreign currencies at freely determined market rates.FX bureaus are authorized to conduct spot transactions with general public on the basis of rates negotiated with their clients.Not available.No.
MalaysiaDetermined on the basis of supply and demand with central bank intervention to maintain orderly conditions.No.Commercial tunks are free to determine and quote exchange rates, spot or forward, to all customers for all currencies other than those of Israel and Federal Republic of YugoslaviaNot applicable.Not available.Forward contracts may be effected for both commercial and financial transactions, with prior approval for the latter. In August 1997. Bank Nefara Malaysia imposed controls requiring banks to limit their noncommercial related ringgit-offer side swap transactions (forward order/spot purchases of rirtggit by foreign customers) to US5.2 million a foreign customer.
MaldivesAuthorities maintain a de facto peg against the U.S. dollar under a managed float.No.Market not well developed. Daily limits imposed an purchases of FX at the Post Office Exchange Counter (POEC) and the practice of the monetary authority to sell FX lo trading firms and individuals through the POEC im peded market development.Not applicable.Not available.No.
MaltaDetermined on the basis of a weighted basket of currencies.No.Transactions in small amounts Lire handled through the inter-bank market with no limits on buy-sell rates.Not applicable.Not available.The central bank provides forward cover directiy to public sector, with rates based on interest rate differentials.
Marshall IslandsPegged with US$ as legal tender.No.FX transaction are handled by 3 commercial banks (authorized FX dealers regulated by a statutory banking board): banks buy-sell at rates quoted in international markets.Not applicable.Not available.Forward transactions may be conducted through commercial banks without restrictions.
MauritaniaDetermined in the market.No.Intermediary banks and FX bureaus licenced by the central bank are authorized to buy-sell FX; they are free to set their commissions for FX transactions.Active; in addition to FX bureaus, hotels, shipping firms, and travel agencies may buy (not seil) banknotes, traveler’s checks under licenced intermediate banks’ control.Not available.No.
MauritiusDetermined in the interbank marketNo.Introduced in the last quarter of 1994.Yes. Hotels are also willing to buy foreign exchangeNot available.Forward transactions can be conducted through commercial banks without restrictions.
MexicoDetermined in the interbank market.Monthly auction of options (giving financial institutions the right to sell $ to the central bank in exchange for pesos) was introrduced in August 1996.Dominant market.Not applicable.Not available.Forward cover available from authorized banks. There ii an OTC market in forwards and options in FX and Chicago Mercantile Exchange trades future contracts on the peso.
MicronesiaPegged with U.S.dollaras legal tender.No.FX transactions are handled by 3 commercial banks (authorized FX dealers regulated by a statutory banking board); banks buy-sell at rates quoted in international markets.Not applicable.Not available.Forward transactions maybe conducted through commercial banks without restrictions.
MoldovaDetermined in daily fixing sessions.Role of fixing sessions declined significantly.Has further developed and gained depth (98% of turnover); increase in confidence among banks and establishment of Reuters lines are necessary for further development.Used for cash transactions: active and functioning well.Not available.No.
MongoliaDetermined once a week on the basis of average buy-sell rates in the interbank market.No.Market is smalt and volume of trading is very low, wiih the exchange rate controlled by the rate fixed by the central baik.Active.Yes.No.
MoroccoDetermined in the interbank market within a very narrow band since June 1996.No.Interbank market was created in June 1996.Not applicable.Not available.Yes; official forward cover was suspended in June 1996 following the creation of the FX market.
MozambiqueDetermined in the interbank market.No.Established in July 1996, where central hank, commercial banks and FX bureaus participate.Active.Not available.No.
NamibiaPegged to the South African rand at par.No.Exchange market has developedas an extension of the exchange market in South Africa.Not applicable.Not available.Authorized dealers may conduct forward FX operations for certain trade and nonrrade transactions for a given maturity and currency: official cover is provided for import financing at preferential rates.
NicaraguaDetermined within a crawling peg system.No.Financial institutions and FX houses may carry out transactions with the private sector.Active.Nos available.No.
NigeriaOfficial rate is pegged against the U.S. dollar; all other transactions (interbank and bureau de change transactions and intervention) take place at a market determined rate.No.An autonomous foreign exchange market with interbank dealing and periodic central bank sales to end users was reintroduced in 1995: Q1 together with a dual exchange rate system as part of a strategy to partly liberalize the FX market.Yes.YesForward FX transactions in the interbank market are permitted among authorized FX dealers and between dealers and their customers. However, the size of this market is small.
PakistanSet by the central bank.Not applicable.Not available.The central bank provides forward FX cover for private FX deposits.
Papua New GuineaDetermined in the interbank market auctions.Authorized dealer banks participate with the central bank acting as broker.Not well developed, with commercial banks being the only authorized FX dealers. Banks publish rates for all transactions with their customers within a maximum buy-sell spread of 2%.NoNot available.Commercial banks provide forward cover to exporters and importers at market rates, subject to prudential limits on uncovered forward position.
ParaguayDetermined in the exchange market.No.No.No.Not available.Commercial banks may enter into forward contracts for trade transactions on terms freely negotiated with customers.
PeruDetermined freely by supply and demand.No.No.NoNot available.Forward transactions take place only in the commercial banking sector.
PhilippinesDetermined freely in the FX market.No.Commercial banks trade in FX through an electronic screen-based network.No.Not available.All forward transactions to purchase FX from nonresidents require clearance by the central bank; BSP met foreign currency needs of foreign banks and banks with maturing nondeliverable forward contracts on a forward basis in July/August/December. Also, corporations with future foreign exchange obligations can enter into a nondeiiverable forward facility contract with a bank, which in turn covers the forward contract with BSP.
PolandDetermined in the interbank market, which is allowed to fluctuate within a band around a crawling central parity.No.Developed gradually since 1990, with the central bank having played an active role in its promotion with the provision of the basic regulatory infrastructure.Active: natural persons may transact freety with the exchange rate determined by supply - demand conditions.Not available.No formal forward exchange market, but large commercial banks provide forward contracts if requested.
QatarPegged to SDR within margins of ±7.25%.No.Commercial banks set exchange rates for their transactions based on the central bank buy-sell rates with a spread of QR 0.0087 applied to exchange transactions with public.Not applicable.Not available.In the commercial banking sector, importers may purchase FX in the forward market.
RomaniaDetermined in the inteibank market.Transaction volumes in the FX market have increased significantly, indicating some deepening of the market. There is lack of commitment to market-making by banks.FX bureaus conduct transactions in foreign banknotes and traveler’s checks with natural persons; free to set their rates.Not available.No major forward exchange market exists.
RussiaDetermined based on bid-ask quotes of large banks in the interbank market.In the form of fixing sessions. Role of she auction market faded.Dominant market (about 99% recently); trade is active and accelerated through dealings through phone, brokers, and Reuters screens; the central bank intervenes at its discretion in this market, except when the market exchange rate hits the upper or lower bounds of the daily exchange rate band, in which case it sells/buys foreign exchange at those rates.Active.Not available.There is a futures trading market in Moscow: forward contract are sold by authorised banks; the central bank provides forward cover to authorized banks for nonresidents to repatriate investment proceeds in government securities. Ruble forward market recently opened at the Chicago Mercantite Exchange.
RwandaDetermined freely in the exchange market.Commercial banks and FX bureaus operate in this market with banks permitted to apply variable commission to these operations.Active.Mot available.No.
São Tonne and PrincipeIndicative exchange rate is set as a weighted average of the rates of FX bureaus, banks, and the parallel market previous day.No.Active.Yes.No.
Saudi ArabiaPegged to SDR within margins of ±7.25%.No.The central rate against the U.S. dollar set by the central bank and its buy-sell rates form the basis far exchange rate quotations in the market; banks may charge commissions up to a given percentage.Not applicable.Not available.The commercial banking sector has an active forward market to cover exchange risks for up to 12 months.
SeychellesPegged to a currency basket.No.Commercial banks are authorized to deal in foreign currencies at rates based on the exchange rates circulated daily by the central bank.Casinos, guest houses, hotels, restaurants, tour operalore, travel and shipping agents may buy during their licensed activity, must sell all FX proceeds to commercial banks; all other transactions are forbidden.Not available.No
Siena LeoneFreely determined in the interbank market.No.Commercial banks and licensed FX bureaus may buy and sell FX with customers and trade among themselves or with the central bank freely: the weighted average rate of bank and FX dealer transactions in previous week is used to calculate official rate.Active; FX bureaus are limited to spot transactions and are not allowed to sell traveler’s checks.Not available.No.
SingaporeFreely determined in the FX market with the monetary authority monitoring the exchange rate against a trade weighted basket.No.Not applicable.Not available.Trade in foreign currency futures are permitted. Banks can hedge against exchange rate risk through forward FX transactions.
Slovak RepublicDetermined in daily Fixing sessions.Daily fixing sessions are used to determine the official exchange rate, but the importance of this market in total FX transactions declined.Dominant market for FX transactions.Not applicable.Not available.Not applicable.
SloveniaDetermined in the interbank market.Licensed batiks may conduct FX transactions among themselves. The market, however, is undeveloped and segmented and volume of transactions is small due to capital controls, active central bank involvement, and mrunsparem regulations on banks’ positions.Active; natural persons with banks and FX offices at freely negotiated rates.Not available.There is a forward exchange market but the volume trading is not significant.
Solomon IslandsPegged against a cumncy basket.No.Commercial banks are free to determine their exchange rates for all foreign currencies except the U.S. dollar, which is provided by the central bank, there is a lax on FX sales exceeding a certain amount.Not applicable.Not available.Commercial banks: may enter into forward contracts with residents in any currency.
SomaliaDetermined in the free market by supply and demand.No.In the free FX market the exchange, rate is freely negotiated between resident holders of FX accounts; there is also an official market with the central bank and 2 commercial banks that operate as authorized dealers.Not applicable.Not available.No.
South AfricaDetermined freely in the FX markt.No.Not available.Authorized dealers provide cover, including for nonresidents subject to limitations, and for trade and nontrade transactions of residents with nonresidents: there is official cover in U.S. dollars with documentary evidence.
SudanA Joint Committee of commercial bank representatives, nonbank dealers and the central bank determine daily the official exchange rate band within which dealers trade freely Exchange rate in the account-to-account market is determined by market forces.No.About 27 commercial banks and other exchange dealers trade freely within the exchange rate band set by the Joint Committee, with fixed margins between buy-sell rates eliminated inearty 1997.Active.Yes, legalNo.
SurinameDetermined in the interbank market. The central bank determines the exchange rate to be used in official transactions, which is based on the weighted average rate of commercial bank transactions over the last five days.No.Commercial banks and licensed FX houses may trade with their customers and among themselves at freely negotiated rates.Active.Not available.No.
TajikistanBased on weekly auctions since July 1997.Weekly auctions resumed in mid-1997 after having ceased: the market is not transparent and is segmented with the curb market.Permitted but attracts limited interest.Used for retail transactions, but rates are influenced by, or close to, the auction rate.Yes.No.
TanzaniaDetermined in die interbank market.No.Central bank plays a dominant rate in the interbank market. Access to the market limited; all FX bureaus were prohibited from participating the in the interbank market from July 1996.Large non bank dealers were upgraded so that they could provide a broad range of services.Not available.Authorized dealers may enter into forward contracts for purchases and sales of FX with their customers in export and import transactions.
ThailandDetermined under a managed float.No.Commercial banks may transact among themselves and with their customers.Not applicable.Not available.All forward exchange transactions must be related to underlying trade and financial transactions.
Trinidad and TobagoDetermined in the interbank market.No.Banks are allowed to conduct spot FX transactions without limitationNot applicable.Not available.Banks are allowed to conduct forward FX transactions with public without limitation.
TunisiaDetermined in the interbank market.No.interbank market was introduced in May 1997, where domestic banks were permitted to trade foreign currencies in the spot market among themselves, with foreign correspondents, and nonresident banks in Tunisia.Domestic banks are allowed to undertake forward FX operations related to trade and services from end-June 1997, the central bank provides exchange guarantees to certain officially guaranteed loans.
TurkeyDetermined in the interbank market under a managed float.No.Commercial banks, special financial institutions, post, telephone and telegraph offices and precious metal intermediaries are free to set their exchange rates.Not available.Banks and precious metal brokers may enter forward transactions at freefy established rates; banks may enter swap transactions with the central bark (not currently active).
TurkmenistanEstablished at the weekly auctions.Dominant market; but access is restricted, certain transactions are excluded, and not transparent.Permitted but volume of transactions is small and subject to restrictions.Not applicable.Yes.No.
UgandaDetermined in the interbank market.No.Authorized banks and FX bureaus licensed lo buy and sell FX operate at freely negotiated rases. Market is thin in part due to instability of FX flows. Very few banks have access to Reuters screens for dealing.Active. Have important role in the FX market.Not available.Authorized dealers may deal in the forward exchange market provided there is an underlying approved import/export contract.
UkraineDetermined by competitive bidding at daily FX auctions.Role in total transactions is declining.Trade is allowed to take within a margin of ±0.6% around the official rate; turn over larger than the auction market.Active.Not available.No.
UruguayDetermined in the exchange market under crawling band mechanism.No.No.
UzbekistanBased on daily FX auctions.Dominant market; dormant, not transparent.Undeveloped.Small volume of cash transactions take place with buy-sell rates administratively set at a more depreciated rate.Yes.No.
VietnamDetermined in the interbankmarket within stipulated ranges.Activity in the auction market effectively ceased in 1995.All FX transactions are channeled through the interbank market since 1995 with trading taking place within stipulated ranges determined by the central bank.Not applicable.Not available.Yea.
ZambiaDetermined in the daily filing sessions.Central bank determines the amount of FX sold or bought through its dealing window. Dominant market.Exchange rates prevailing in the interbank market follow closely those established at die central bank’s dealing window. The market is fairly small due to high seasonality of flows and lack of trust among banks.Not applicable.Not available.No.
ZimbabweDetermined in the exchange markat.No.Authorized dealers and FX bureaus base their exchange rates on current international market rates. There is limited competition in the market and insufficient market-making by banks. There is no screen-based information network.Active.Not available.Forward exchange contracts are permitted for trade transactions, with no limit on the size but or the maturity.

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