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Cross-border Trade and the Parallel Currency Market

Author : Yahaya Hashim

Publisher : Nordic Africa Institute

Page : 128 pages

File Size : 46,2 MB

Release : 1999

Category : Business & Economics

ISBN : 9789171064493

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Book Description

The authors of this study challenge the assumptions of the World Bank that the expansion in informal cross-border trade is a vindication of the market-liberalizing thrust of structural adjustment, and that adjustment policies have improved the effectiveness of an "independent" bourgeoisie that is emerging out of this trade as an agent of regional integration. Instead, they make the case for the adoption of what they call a "development approach" for tapping the benefits of the informal currency markets, as an alternative to the "market coercion" of structural adjustment.



Parallel Currency Markets in Developing Countries

Author : International Monetary Fund

Publisher : International Monetary Fund

Page : 52 pages

File Size : 23,10 MB

Release : 1990-12-01

Category : Business & Economics

ISBN : 1451943229

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Book Description

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.



Currency Trading in the Forex and Futures Markets

Author : Carley Garner

Publisher : FT Press

Page : 241 pages

File Size : 46,89 MB

Release : 2012-01-04

Category : Business & Economics

ISBN : 0132779668

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Book Description

Currency trading offers immense potential to stock and futures investors seeking new speculative opportunities. However, there are several ways to trade in currencies, and many unsuspecting traders have been burned by aggressive marketing campaigns and gimmicks luring them into unfavorable trading environments. In this book, best-selling trading author Carley Garner covers everything new currency traders need to know to avoid those pitfalls and start earning big profits. Currency Trading in the Forex and Futures Markets begins by demystifying all the essentials, from quotes and calculations to the unique language of Forex trading. Readers learn all they need to know about choosing trading platforms and brokerage firms; working with leverage; controlling transaction costs; managing liquidity, margins, and risks; and much more. Garner thoroughly explains the currency spot market (Forex); currency futures traded on the Chicago Mercantile Exchange (CME); and currency ETFs. She candidly discusses the advantages and disadvantages of each, cutting through the "smoke and mirrors" often associated with currency trading. Readers will also find a full section on currency market speculation, including a clear introduction to fundamental and seasonal analysis in currency markets. With her guidance, new currency traders can identify the markets and approaches that best fit their objectives, and avoid the pitfalls that have often victimized their predecessors.



Recognizing Reality—Unification of Official and Parallel Market Exchange Rates

Author : Mr.Simon T Gray

Publisher : International Monetary Fund

Page : 45 pages

File Size : 11,53 MB

Release : 2021-02-05

Category : Business & Economics

ISBN : 1513568639

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Book Description

Some central banks have maintained overvalued official exchange rates, while unable to ensure that supply of foreign exchange meets legitimate demand for current account transactions at that price. A parallel exchange rate market develops, in such circumstances; and when the spread between the official and parallel rates is both substantial and sustained, price levels in the economy typically reflect the parallel market exchange rate. “Recognizing reality” by allowing economic agents to use a market clearing rate benefits economic activity without necessarily leading to more inflation. But a unified, market-clearing exchange rate will not stabilize without a supportive fiscal and monetary context. A number of country case studies are included; my thanks to Jie Ren for pulling together all the data for the country case studies, and the production of the charts.



Exchange Controls and Parallel Market Economies in Sub-Saharan Africa

Author : Ernesto May

Publisher :

Page : 168 pages

File Size : 49,75 MB

Release : 1985

Category : Business & Economics

ISBN :

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Book Description

This paper provides a theoretical framework to understand the way in which exchange controls modify the behavior of the different agents in the economy, leading to the creation of a parallel market economy. It gives the necessary theoretical elements to analyze this parallel market economy and provides a simple methodology to obtain relevant quantitative information about it. Finally, the paper elaborates on some of the policy implications of the existence of a parallel market economy. The model developed shows that the parallel market activities can be explained through the optimizing behavior of exporters and importers, which determines the amount of import and export smuggling, the level of the rent-seeking activity, and the black market exchange rate that is consistent with an equilibrium position where no one has any more incentives to move from their attained position. A method to detect the presence, and assess the magnitude of the parallel market economy, as well as to explain its behavior quantitatively, is then developed and applied to the case of Ghana.



Parallel Exchange Rates in Developing Countries

Author : Miguel Alberto Kiguel

Publisher : Palgrave MacMillan

Page : 426 pages

File Size : 13,86 MB

Release : 1997

Category : Business & Economics

ISBN :

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Book Description

The evidence of black market exchange rate systems and their impact on macroeconomic performance is well documented in this fully researched study of the problem. The book offers policy conclusions after assessing the evidence.



Informal cross-border trade in Africa: How much? Why? And what impact?

Author : Bouet, Antoine

Publisher : Intl Food Policy Res Inst

Page : 56 pages

File Size : 43,75 MB

Release : 2018-12-21

Category : Political Science

ISBN :

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Book Description

Informal cross-border trade (ICBT) represents a prominent phenomenon in Africa. Several studies suggest that for certain products and countries, the value of informal trade may meet or even exceed the value of formal trade. This paper provides a review of existing efforts to measure informal trade. We list 18 initiatives aimed at measuring ICBT in Africa. The paper also summarizes discussions conducted with many stakeholders in Africa between December 2016 and May 2018 regarding the measurement, the determinants, and the implications of ICBT. The methodologies used to measure ICBT in Africa differ widely, but they do confirm that informal trade in Africa is both sizeable and volatile. Both evidence on the determinants of ICBT and discussions with stakeholders suggest that policies should aim to reduce the existing costs associated with formal trade and provide positive incentives for traders and producers to move into the formal economy in order to avoid the loss of economic potential stemming from informal trade.





Annual Report on Exchange Arrangements and Exchange Restrictions 2013

Author : International Monetary Fund. Monetary and Capital Markets Department

Publisher : International Monetary Fund

Page : 105 pages

File Size : 18,70 MB

Release : 2013-12-15

Category : Business & Economics

ISBN : 1484366808

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Book Description

This is the 64th issue of the AREAER. It provides a description of the foreign exchange arrangements, exchange and trade systems, and capital controls of all IMF member countries. It also provides information on the operation of foreign exchange markets and controls on international trade. It describes controls on capital transactions and measures implemented in the financial sector, including prudential measures. In addition, it reports on exchange measures imposed by member countries for security reasons. A single table provides a snapshot of the exchange and trade systems of all IMF member countries. The Overview describes in detail how the general trend toward foreign exchange liberalization continued during 2012, alongside a strengthening of the financial sector regulatory framework. The AREAER is available in several formats. The Overview in print and online, and the detailed information for each of the 191 member countries and territories is included on a CD that accompanies the printed Overview and in an online database, AREAER Online. In addition to the information on the exchange and trade system of IMF member countries in 2012, AREAER Online contains historical data published in previous issues of the AREAER. It is searchable by year, country, and category of measure and allows cross country comparisons for time series.



Dominant Currency Paradigm: A New Model for Small Open Economies

Author : Camila Casas

Publisher : International Monetary Fund

Page : 62 pages

File Size : 35,82 MB

Release : 2017-11-22

Category : Business & Economics

ISBN : 1484330609

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Book Description

Most trade is invoiced in very few currencies. Despite this, the Mundell-Fleming benchmark and its variants focus on pricing in the producer’s currency or in local currency. We model instead a ‘dominant currency paradigm’ for small open economies characterized by three features: pricing in a dominant currency; pricing complementarities, and imported input use in production. Under this paradigm: (a) the terms-of-trade is stable; (b) dominant currency exchange rate pass-through into export and import prices is high regardless of destination or origin of goods; (c) exchange rate pass-through of non-dominant currencies is small; (d) expenditure switching occurs mostly via imports, driven by the dollar exchange rate while exports respond weakly, if at all; (e) strengthening of the dominant currency relative to non-dominant ones can negatively impact global trade; (f) optimal monetary policy targets deviations from the law of one price arising from dominant currency fluctuations, in addition to the inflation and output gap. Using data from Colombia we document strong support for the dominant currency paradigm.