| Executive Summary and Issues for Discussion |
|
| I. |
Introduction |
|
| II. |
The Foreign Exchange Market |
| |
|
Disorderly exits |
|
| III. |
Official Intervention in the Foreign Exchange
Market |
| |
|
Misalignments |
| |
|
Disorderly markets |
| |
|
Intervention principles/constraints |
| |
|
Rules-based intervention |
| |
|
Disorderly exits |
|
| IV. |
Monetary Policy Framework and Nominal
Anchor |
|
| V. |
Prudential Regulation and Management of
Exchange Rate Risk |
| |
|
Derivatives |
| |
|
Disorderly exits |
|
| VI. |
Pace and Sequencing of Exit to Exchange
Rate Flexibility |
| |
|
Gradualism: options |
| |
|
Pace: key considerations |
| |
|
Sequencing capital account liberalization
and exchange rate flexibility |
| |
|
In conclusion |
|
| Figures |
| 1. |
Number and Type of Exits, 1990-2002 |
| 2. |
Exits by Exchange Rate Regime, 1990-2002 |
| 3. |
Preparing for an Orderly Exit from a Peg |
|
| Boxes |
| 1. |
Orderly versus Disorderly Exits to Flexible
Exchange Rate Regimes |
| 2. |
Disorderly Exits and Foreign Exchange
Market Development: Country Examples |
| 3. |
Experiences with Crawling Bands |
| 4. |
Sequencing the Reforms: Country Examples |
|
| Appendices |
| I. |
Market Microstructure and other Foreign
Exchange Market Issues |
| II. |
Country Experiences with Reversals Towards
Less Flexible Exchange Rate Regimes |
| III. |
Issues Relating to Floating in Developing
Countries |
|
| References |
