Capital controls and exchange rate regime: case study of India

2012 ◽  
Vol 5 (2) ◽  
pp. 177-186
Author(s):  
Ramya Ghosh
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Regime ◽  
Capital Controls

Lower naira will not offset Nigerian recession risks

2020 ◽  
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Exchange Rate Regime ◽  
Capital Controls ◽  
Oil Price ◽  
Content Type ◽  
Official Exchange Rate ◽  
Multiple Exchange ◽  
Price War ◽  
The Exchange Rate

Subject Pressured naira. Significance The naira has depreciated by approximately 11% on the parallel market since the Saudi-Russia oil price war began, which dashed hopes of OPEC+ supply curbs to stem the price rout amid the escalating COVID-19 pandemic. This has hampered the Central Bank of Nigeria’s (CBN) ability to support the multiple exchange rate regime, prompting a sharp devaluation of the official exchange rate. Impacts The naira’s devaluation will accelerate rising inflationary pressures from the closure of Nigeria’s land borders last year. The CBN could impose damaging capital controls once more if the exchange rate falls further towards 500:1. With low funds in the oil savings fund, the authorities will likely limit their intervention against COVID-19 to soft loans from the CBN.

scholarly journals Notes on the Brazilian Crisis of 1997-99

2003 ◽  
Vol 23 (3) ◽  
pp. 376-404
Author(s):  
FRANCISCO L. LOPES
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Exchange Rate Regime ◽  
Capital Controls ◽  
Critical Issue ◽  
Exchange Rate Policy ◽  
The Real ◽  
Diagonal Band ◽  
Rate Policy ◽  
The Exchange Rate

ABSTRACT This paper deals with the Brazilian crisis of 1997-98 that lead to the exchange rate floating of January 1999. It starts by showing how exchange rate policy evolved since the Real Plan of 1994 and how the exchange rate regime became a critical issue when the crisis started in 1997. It discusses monetary policy during the crisis, the IMF program, the endogenous diagonal band and the decision to float as an alternative to capital controls and default. This five-year drama ended surprisingly well with a benign float, but it is useful to know its details, with the usual mix of economic de- bate, personality clashes and historical fatality.

Exchange Rate Regimes and Economic Stability

2010 ◽  
pp. 29-43
Author(s):  
S. Smirnov
Keyword(s):  
Exchange Rate ◽  
Inflation Targeting ◽  
Exchange Rate Regime ◽  
Exchange Rate Policy ◽  
Real Sector ◽  
Economic Stability ◽  
Exogenous Shocks ◽  
Floating Exchange Rate ◽  
Rate Policy ◽  
Managed Floating

The Bank of Russia intends to introduce inflation targeting policy and exchange rate free floating regime in three years. Exogenous shocks absorption which stabilizes the real sector of economy is usually considered to be one of the advantages of free floating exchange rate policy. However, our research based on the analysis of 25 world largest economies exchange rates and industrial production during the crisis of 2008-2009 does not confirm this hypothesis. The article also analyzes additional risks associated with free floating exchange rate regime in Russia and presents some arguments in favor of managed floating exchange rate regime.

Impact of external currency exposures on macroeconomic policies

2020 ◽  
pp. 23-40
Author(s):  
I. V. Prilepskiy
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Positive Impact ◽  
Exchange Rate Regime ◽  
Macroeconomic Policies ◽  
Panel Regressions ◽  
Financial Account ◽  
Currency Exposure ◽  
Cross Country ◽  
The Impact

Based on cross-country panel regressions, the paper analyzes the impact of external currency exposures on monetary policy, exchange rate regime and capital controls. It is determined that positive net external position (which, e.g., is the case for Russia) is associated with a higher degree of monetary policy autonomy, i.e. the national key interest rate is less responsive to Fed/ECB policy and exchange rate fluctuations. Therefore, the risks of cross-country synchronization of financial cycles are reduced, while central banks are able to place a larger emphasis on their price stability mandates. Significant positive impact of net external currency exposure on exchange rate flexibility and financial account liberalization is only found in the context of static models. This is probably due to the two-way links between incentives for external assets/liabilities accumulation and these macroeconomic policy tools.

Sign in / Sign up

Export Citation Format

Share Document