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Discusses value of the dinar, the confusing system of multiple exchange rates & the cost of living.
He had previously cast aspersions on austerity, preferring to increase manufacturing through instituting protectionist measures and multiple exchange rates to subsidize exporters.
Dual or multiple exchange rates have resulted in recent years from measures for the control and restriction of foreign exchange and export transactions.
We may assume that the dual or multiple exchange rates which have emerged were not in contemplation when the 1930 Act was passed.
They included the abolition of a multiple exchange rate, the reduction in subsidies to state companies, and the elimination of export taxes.
Some economists and politicians have revived discussion of scrapping the peso altogether and using dollars, or of trying again to use multiple exchange rates for different purposes, a policy that was abandoned as unworkable last month.
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Myanmar has recognised that it badly needs their technical help in reforming its cumbersome multiple exchange-rate system.
See articleVenezuela devalued its currency, setting up a multiple exchange-rate system under which most imports will now cost 4.3 bolívares to the dollar, twice the previous fixed rate.
In a seeming attempt to hark back to that earlier era of prosperity, Hugo Chávez, Venezuela's leftist president, first fixed the currency in 2005 and two years ago relaunched it with three fewer zeroes as the "strong bolívar", at 2.15 to the dollar.Heightening the sense of déjà vu, there will be a multiple exchange-rate, just as there was in the 1980s.
Under a new multiple exchange-rate system, priority imports of food and medicine are paid for at 2.60, with 4.30 for other officially authorised imports and a "parallel" (ie, market) rate for the rest (now around eight bolívares to the dollar).
And they will always be able to find them".The government is thought to be unsure about what to do: impose more curbs, make the multiple exchange-rate system official, or use the Central Bank's reserves to flood the market and ease the pressure on the blue dollar ahead of a legislative election due in October.
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