## Efficiency Costs of Myanmar’s Multiple Exchange Rate Regime

_IMF Working Papers, August 1, 2008_

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## Bibliographic details
- Authors: Masahiro Hori, Yu Ching Wong
- Published: August 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451870572.001

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### Summary and scope
- Describes exchange rate practices in Myanmar and develops a model of foreign exchange markets.
- Presents the efficiency costs imposed by quasi-fiscal operations under the current multiple exchange rate regime.
- Paper authors: Masahiro Hori, Yu Ching Wong.
- Publication date: August 1, 2008.
- Series: Working Paper No. 2008/199; Pages: 30; DOI: https://doi.org/10.5089/9781451870572.001; ISBN: 9781451870572; ISSN: 1018-5941.

### Model-based findings and equilibrium estimates
- The model-based analysis indicates that the equilibrium exchange rate under a unified market could be at around K 400-500 per U.S. dollar.
- Using the equilibrium exchange rate (instead of the official exchange rate) as the accounting rate increases trade openness to more than 20 percent from less than 1 percent measured by official statistics.

### Efficiency costs and magnitude
- The total efficiency loss caused by the current multiple exchange rate regime is estimated at about 14-17 percent of GDP in 2006/07.

### Analytical focus areas
- Examination of economic distortions created by a multiple exchange rate system.
- Quantification of quasi-fiscal operations associated with exchange rate practices.
- Implications for measured trade openness when accounting rates are changed to an equilibrium market rate.

*IMF Working Paper No. 2008/199 — Masahiro Hori and Yu Ching Wong*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/efficiency-costs-of-myanmars-multiple-exchange-rate-regime-22272_