From Fixed to Float: Operational Aspects of Moving towards Exchange Rate Flexibility
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
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.
Series:
Working Paper No. 2004/126
Subject:
Currency markets Exchange rate arrangements Exchange rate flexibility Exchange rate risk Exchange rates Financial markets Financial regulation and supervision Foreign exchange
English
Publication Date:
July 1, 2004
ISBN/ISSN:
9781451854930/1018-5941
Stock No:
WPIEA1262004
Pages:
39
Please address any questions about this title to publications@imf.org