Iran currently has a
dual exchange rate regime where the 'official rate', largely used for the import of basic goods and staples, is 15% stronger (in IRR terms) than the 'free market rate'.
In my opinion, the
dual exchange rate constitutes a main drawback to any new or existing investment.
The directive was widely expected, as Valiollah Seif, the governor of the Cental Bank, has long said the
dual exchange rate system would be ended soon after sanctions were lifted.
3, and streamline the previous three-tiered system into a
dual exchange rate mechanism.
However, the
dual exchange rate system was reintroduced again in 1985, when South Africa was faced with large-scale capital outflows.
The bolivar's depreciation, in conjunction with the government's H113 introduction of a
dual exchange rate system, will have a tangible effect on the commercial real estate sector by curtailing business activity.
The bolivar's depreciation, in conjunction with the government's H113 introduction of a
dual exchange rate system in Venezuela, will have the most tangible effect on the Commercial Real Estate sector in the short term by curtailing business activity.
It extends the argument of the effects of flexible and fixed ERRs on fiscal discipline--as described by Tornell and Velasco (1998, 2000)--by adding a third ERR:
dual exchange rate regime.
The plan for Myanmar's boldest economic reform yet was laid out by central bank deputy governor Maung Maung Win in documents seen by Reuters on Tuesday that said preparations to unify the
dual exchange rate should be made by the end of this month.
While it is certainly true that China was relatively unaffected by the Asian Crisis in 1997, the author fails to mention, among other things, the unification of the China's
dual exchange rate system on 1 January 1994, which led to a substantial yuan devaluation.
1984): Capital controls, the
dual exchange rate, and devaluation, NBER Working Paper # 1324.
Monetary policy consists mainly of ensuring that aggregate spending expands in line with output growth, although the existence of the large informal economy and the
dual exchange rate complicates this task.
