Cover IMF Working Papers
Parallel Currency Markets in Developing Countries: Theory, Evidence, and Policy Implications
Author: International Monetary Fund
Series:
IMF Working Papers
Volume/Issue:
Volume 1990: Issue 114
Language:
English
Publication Date:
01 Jan 1990
DOI:
https://doi.org/10.5089/9781451943221.001
ISBN:
9781451943221
ISSN:
1018-5941
Pages:
52
Keywords:
WP; foreign currency; market premium; currency market; exchange market unification; rate of depreciation; parallel market; market rate; Currency markets; Exchange rates; Currencies; Multiple currency practices; Asia and Pacific; Middle East; Caribbean
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The paper reviews recent theoretical and empirical developments in the analysis of informal currency markets in developing countries. The basic characteristics of these markets are highlighted, and alternative analytical models to explain them are discussed. The implications for exchange rate policy —including imposition of foreign exchange restrictions, devaluation, and unification of exchange markets— in countries with a sizable parallel market are also examined.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund