US EditionAn Anatomy of Pakistan’s Exchange Rate Regime
Download Proponents of a free-floating or market-driven ER regime have argued that distortionary CB interventions in the foreign exchange (FX) market alter the ER trajectory. Historically, evidence shows such interventions result in ER misalignment, eventually leading to the widening of the trade deficits and balance of payment challenges.Over the past year, the PKR stability has raised questions regarding the ER misalignment. The surplus in the…
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An Anatomy of Pakistan’s Exchange Rate Regime
Download Proponents of a free-floating or market-driven ER regime have argued that distortionary CB interventions in the foreign exchange (FX) market alter the ER trajectory. Historically, evidence shows such interventions result in ER misalignment, eventually leading to the widening of the trade deficits and balance of payment challenges.Over the past year, the PKR stability has raised questions regarding the ER misalignment. The surplus in the…
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