It has risen by a quarter against the baht over the past year, mostly, says Mr Turnell, because of inflows of aid after Cyclone Nargis.
Even the most conservative estimates suggest that the outflow of funds linked to money-laundering, corruption, tax evasion and avoidance and deliberately mispriced commercial transactions exceeds total inflows of aid.
(Africa's big inflows of aid also contribute to higher real exchange rates because they result in upward pressure on prices for goods and services that are not traded internationally).Changing labour-market dynamics could exacerbate the job problem.
v) Finally, we also consider inflows of aid (ODA) from overall DAC donors.
These influxes of refugees have placed a strain on the Malawian economy but have also drawn significant inflows of aid from other countries.
On top of the inflow of foreign aid, this is helping to get the economy moving again.The outsiders' first need is shelter.
Admittedly, growth looks like lapsing to 5% or less this year, not least because of a bleaker world economic outlook; but reconstruction work and a promised inflow of foreign aid should push it up next year.The political prospects in Georgia are murkier.
The U.S. would ensure the inflow of multilateral aid to rebuild the devastated country in the image of its American saviors.
Then there is the reliance on heavy inflows of foreign aid, which equaled a quarter to nearly a third of government spending in countries like Burkina Faso, Cameroon and Mali in 2008, according to figures compiled by a World Bank economist, Mamadou Ndione.
