1) Complete reform, consisting in the implementation of gradual devaluation in the CUP exchange rate for all companies; and 2) reform by sectors, consisting in the gradual incorporation of some sectors in a particular system with a devalued
official exchange rate.
Bankers said the move to align the
official exchange rate closer to the black market appears to show that authorities recognise foreign reserves can no longer be run down so rapidly to defend the currency.
In 2004, the central bank had come up with a plan that permitted lenders to trade as much as two percent above or below the
official exchange rate.
At the beginning of 2010, the Venezuelan government announced a devaluation of the
official exchange rate of the Venezuelan currency to the USD.
The company has been negotiating unsuccessfully for years with the Venezuelan government to repatriate profits at the much more favorable
official exchange rate.
The
official exchange rate system, adopted around the world, is used to determine how one country will treat the winner of races in other countries.
It recommended keeping the linking of the dirham to the US dollar without any change to the
official exchange rate of the dirham," the WAM news agency said after the committee met UAE vice president and prime minister Sheikh Mohammed bin Rashid al-Maktoum yesterday.
Although the above-mentioned studies validate the PPP by using the black market more often than the
official exchange rate, support for the PPP is not unanimous across the countries.
China's
official exchange rate returned to the level of 8 yuan to the dollar on Tuesday, after breaching that line Monday to reach the highest level since the currency's revaluation last July, the People's Bank of China said.
1% year-on-year in the first quarter of this year to around 18 trillion manat, according to the National Statistics Institute (The
official exchange rate on April 9 was 5,200 manat/US$1.
The
official exchange rate is about 810 per US dollar but the black market rate is over 2,300.
At press time, the
official exchange rate was 1,600 bolivars to the dollar, at least 500 bolivars lower than the exchange rate on the already-flourishing black market.
