From Fixed to Float

From Fixed to Float PDF

Author: Mrs.Gilda Fernandez

Publisher: International Monetary Fund

Published: 2004-07-01

Total Pages: 40

ISBN-13: 1451854935

DOWNLOAD EBOOK →

This paper identifies the institutional and operational requisites for transitions to floating exchange rate regimes. In particular, it explores key issues underlying the transition, including developing a deep and liquid foreign exchange market, formulating intervention policies consistent with the new regime, establishing an alternative nominal anchor in the context of a new monetary policy framework, and building the capacity of market participants to manage exchange rate risks and of supervisory authorities to regulate and monitor them. It also assesses the factors that influence the pace of exit and the appropriate sequencing of exchange rate flexibility and capital account liberalization.

From Fixed to Float

From Fixed to Float PDF

Author: Rupa Duttagupta

Publisher:

Published: 2006

Total Pages: 39

ISBN-13:

DOWNLOAD EBOOK →

This paper identifies the institutional and operational requisites for transitions to floating exchange rate regimes. In particular, it explores key issues underlying the transition, including developing a deep and liquid foreign exchange market, formulating intervention policies consistent with the new regime, establishing an alternative nominal anchor in the context of a new monetary policy framework, and building the capacity of market participants to manage exchange rate risks and of supervisory authorities to regulate and monitor them. It also assesses the factors that influence the pace of exit and the appropriate sequencing of exchange rate flexibility and capital account liberalization.

Moving to Greater Exchange Rate Flexibility

Moving to Greater Exchange Rate Flexibility PDF

Author: Ms.Inci Ötker

Publisher: International Monetary Fund

Published: 2007-04-30

Total Pages: 94

ISBN-13: 1589066243

DOWNLOAD EBOOK →

Many countries have moved towards more flexible exchange rate regimes over the last decade to take advantage of greater monetary policy autonomy and flexibility in responding to external shocks. Some reluctance to let go of pegged exchange rates persists, however, despite the benefits of flexibility. The institutional and operational requirements needed to support a floating exchange rate, as well as difficulties in assessing the right time and manner to exit, tend to be additional factors in this reluctance. This volume presents the concrete steps taken by a number of countries in transition to greater exchange rate flexibility and elaborates on the operational ingredients that proved helpful in promoting successful and durable transitions. It attempts to provide a better understanding (and hence a "road map") of how these various operational ingredients were established and coordinated, how their implementation interacted with macro and other conditions, and how they contributed to the smoothness of each transition.

Moving to a Flexible Exchange Rate

Moving to a Flexible Exchange Rate PDF

Author: Mrs.Gilda Fernandez

Publisher: International Monetary Fund

Published: 2006-01-09

Total Pages: 29

ISBN-13: 1589064763

DOWNLOAD EBOOK →

A growing number of countries are adopting flexible exchange rate regimes because flexibility offers more protection against external shocks and greater monetary independence. Other countries have made the transition under disorderly conditions, with the sharp depreciation of their currency during a crisis. Regardless of the reason for adopting a flexible exchange rate, a successful transition depends on the effective management of a number of institutional and operational issues. The authors of this Economic Issue describe the necessary ingredients for moving to a flexible regime, as well as the optimal pace and sequencing under different conditions.

China’s Evolving Exchange Rate Regime

China’s Evolving Exchange Rate Regime PDF

Author: Mr.Sonali Das

Publisher: International Monetary Fund

Published: 2019-03-07

Total Pages: 31

ISBN-13: 1498302025

DOWNLOAD EBOOK →

China’s exchange rate regime has undergone gradual reform since the move away from a fixed exchange rate in 2005. The renminbi has become more flexible over time but is still carefully managed, and depth and liquidity in the onshore FX market is relatively low compared to other countries with de jure floating currencies. Allowing a greater role for market forces within the existing regime, and greater two-way flexibility of the exchange rate, are important steps to build on the progress already made. This should be complemented by further steps to develop the FX market, improve FX risk management, and modernize the monetary policy framework.

Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries

Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries PDF

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 2015-10-23

Total Pages: 74

ISBN-13: 1498344062

DOWNLOAD EBOOK →

Over the past two decades, many low- and lower-middle income countries (LLMICs) have improved control over fiscal policy, liberalized and deepened financial markets, and stabilized inflation at moderate levels. Monetary policy frameworks that have helped achieve these ends are being challenged by continued financial development and increased exposure to global capital markets. Many policymakers aspire to move beyond the basics of stability to implement monetary policy frameworks that better anchor inflation and promote macroeconomic stability and growth. Many of these LLMICs are thus considering and implementing improvements to their monetary policy frameworks. The recent successes of some LLMICs and the experiences of emerging and advanced economies, both early in their policy modernization process and following the global financial crisis, are valuable in identifying desirable features of such frameworks. This paper draws on those lessons to provide guidance on key elements of effective monetary policy frameworks for LLMICs.

Evolution and Performance of Exchange Rate Regimes

Evolution and Performance of Exchange Rate Regimes PDF

Author: Mr.Kenneth Rogoff

Publisher: International Monetary Fund

Published: 2003-12-01

Total Pages: 85

ISBN-13: 1451875843

DOWNLOAD EBOOK →

Using recent advances in the classification of exchange rate regimes, this paper finds no support for the popular bipolar view that countries will tend over time to move to the polar extremes of free float or rigid peg. Rather, intermediate regimes have shown remarkable durability. The analysis suggests that as economies mature, the value of exchange rate flexibility rises. For countries at a relatively early stage of financial development and integration, fixed or relatively rigid regimes appear to offer some anti-inflation credibility gain without compromising growth objectives. As countries develop economically and institutionally, there appear to be considerable benefits to more flexible regimes. For developed countries that are not in a currency union, relatively flexible exchange rate regimes appear to offer higher growth without any cost in credibility.

Fixed or Floating Exchange Regimes

Fixed or Floating Exchange Regimes PDF

Author: Peter J. Quirk

Publisher: International Monetary Fund

Published: 1994-11-01

Total Pages: 30

ISBN-13: 1451855532

DOWNLOAD EBOOK →

This paper reviews recent experience with the choice of floating or fixed (“anchor”) exchange regimes in industrial and developing countries. It concludes that desirable differences between the two sets of regimes have narrowed, owing to the useful operational role of exchange rate margins and unavoidable medium-term rate adjustments in the context of fixed regimes. A survey of recent empirical cross-country literature also suggests little unambiguous association of the choice of exchange regime with macroeconomic performance, inflation in particular. Stability of the exchange rate has generally been a by-product of other policy choices. Even announcement effects of the regime on inflation-fighting credibility depend on the country-specific assignments of policy instruments to more than one institution--central bank, government, or regional and multilateral institutions.

Lanterna Rally - Theme by Grace Themes