Comparison of Exchange Rate Systems in Developing Countries

Exchange rate systems are the ways that countries manage their currencies in relation to other currencies. There are different types of exchange rate systems, such as fixed, floating, pegged, managed, and hybrid. Developing countries may choose different exchange rate systems depending on their economic objectives, such as stability, growth, competitiveness, and integration. Here are some web search results that compare exchange rate systems in developing countries:

• Dual and multiple exchange rate systems in developing countries: some empirical evidence: This article examines the determinants and effects of parallel exchange rates in developing countries that have dual or multiple exchange rate systems. It finds that parallel exchange rates are influenced by inflation, fiscal deficits, foreign exchange reserves, and capital controls. It also finds that parallel exchange rates can have negative impacts on economic performance, such as reducing growth, increasing inflation, and distorting resource allocation.

• III Exchange Rate Arrangements of Developing and Transition Countries: This article discusses the advantages and disadvantages of different exchange rate regimes for developing and transition countries. It argues that there is no one-size-fits-all solution, and that the choice of exchange rate regime depends on various factors, such as the degree of openness, the size and structure of the economy, the level of development, the institutional capacity, and the policy preferences. It also suggests some criteria for choosing and implementing an exchange rate regime, such as credibility, consistency, flexibility, and transparency.

• Changes in Exchange Rates in Rapidly Developing Countries: Theory, Practice, and Policy Issues: This book explores the impact of exchange rate changes on the economic performance of rapidly developing countries. It analyzes the causes and consequences of exchange rate fluctuations, the role of exchange rate policies and interventions, and the implications of exchange rate regimes for macroeconomic stability, trade competitiveness, and financial integration. It also provides case studies of exchange rate experiences in East Asian countries, such as China, Korea, Taiwan, and Thailand.