Parallel Currency Markets in Developing Countries: Theory, Evidence, and Policy Implications

52 Pages Posted: 15 Feb 2006

See all articles by Pierre-Richard Agenor

Pierre-Richard Agenor

University of Manchester - School of Social Sciences

Date Written: December 1990

Abstract

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.

JEL Classification: 121, 431

Suggested Citation

Agenor, Pierre-Richard, Parallel Currency Markets in Developing Countries: Theory, Evidence, and Policy Implications (December 1990). IMF Working Paper, Vol. , pp. 1-52, 1990. Available at SSRN: https://ssrn.com/abstract=885142

Pierre-Richard Agenor (Contact Author)

University of Manchester - School of Social Sciences ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom

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