Abstract
This paper analyses determinants of the parallel exchange rate in Myanmar : A time series analysis confirms the following points: first , there is a cointegration relationship between the consumer price index and the parallel exchange rate , which is compatible with the general perception that the chronic depreciation is due to the monetization of fiscal deficits. Second , business fluctuations largely accounted for the changes in the parallel rate in the short term, whereas natural gas revenues did have little effect. On the other hand , given the structure of the parallel exchange market , the disparity between the official and the parallel rates per se appears to exert little impact on the private sector.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
