Welfare Effects of Uzbekistan's Foreign Exchange Regime

March 1, 2000

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Welfare Effects of Uzbekistan's Foreign Exchange Regime, (USA: International Monetary Fund, 2000) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In addition to transferring about 16 percent of GDP from exporters to importers, Uzbekistan’s quasi-fiscal multiple exchange rate regime generates identifiable welfare losses of 2-8 percent of GDP on import markets and up to 15 percent on export markets. These excess burdens have increased substantially with the growing difference of exchange rates. The welfare analysis allows some conclusions regarding the optimal reform strategy: (i) welfare losses will decline overproportionally as exchange rates unify; (ii) exchange rate unification should be supplemented by changing the explicit fiscal system; (iii) at a minimum, Uzbekistan would benefit from moving to an explicit fiscal regime.

Subject: Central banks, Exchange rates, Exports, Foreign exchange, International trade, Market exchange rates, Quasi-fiscal operations

Keywords: Clearing exchange rate, Curb market premium, Exchange rate, Exchange rates, Export, Exports, Foreign exchange regime, Import market, Market, Market exchange rates, Multiple Exchange Rates, Quasi-Fiscal Operations, Rate, U.S. dollar, Uzbekistan, Welfare Analysis, Welfare loss, WP

Publication Details

Pages:

23
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/061
Stock No:

WPIEA0612000
ISBN:

9781451848168
ISSN:

1018-5941

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