Description:
Myanmar?s multiple exchange rate system creates various economic distortions. This paper
describes the exchange rate practices in Myanmar, develops a model of foreign exchange
markets, and presents the efficiency costs imposed by quasi-fiscal operation under the
current exchange rate regime. The results of our model-based analyses indicate that the
equilibrium exchange rate under the unified market could be at around K 400?500 per U.S.
dollar, and using the equilibrium exchange rate (instead of the official exchange rate) as the
accounting rate increases trade openness to more than 20 percent from less than 1 percent
measured by official statistics. The total efficiency loss caused by the current multiple
exchange rate regime is estimated at about 14?17 percent of GDP in 2006/07...
JEL Classification Numbers: F31, H29...
Keywords: Multiple Exchange Rate, Exchange Rate Unification, Efficiency Analysis
Source/publisher:
IMF Working Paper WP/08/199
Date of Publication:
2008-08-00
Date of entry:
2009-01-05
Grouping:
- Individual Documents
Category:
Language:
English
Local URL:
Format:
pdf
Size:
295.15 KB