Exchange Rate Developments and Policies in the Caucasus and Central Asia /

Since late 2014, exchange rates (ERs) and ER regimes of the Caucasus and Central Asia (CCA) countries have come under strong pressure. This reflects the decline of oil and other commodity prices, weaker growth in Russia and China, depreciation of the Russian ruble, and appreciation of the U.S. dolla...

Full description

Bibliographic Details
Main Author: Horton, Mark
Other Authors: Epstein, Natan, Ross, Kevin, Samiei, Hossein
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2016.
Series:Departmental Papers; Departmental Paper ; No. 2016/007
Online Access:Full text available on IMF
Description
Summary:Since late 2014, exchange rates (ERs) and ER regimes of the Caucasus and Central Asia (CCA) countries have come under strong pressure. This reflects the decline of oil and other commodity prices, weaker growth in Russia and China, depreciation of the Russian ruble, and appreciation of the U.S. dollar, to which CCA currencies have historically been linked. Weaker fiscal and current account balances and increased dollarization have complicated the picture. CCA countries entered this period with closely managed ER regimes and, in many cases, currencies assessed by IMF staff to be overvalued. CCA central banks have price stability as their main policy objective, and most have relied on ER stability to achieve this objective. Thus, the first policy response involved intervention in local foreign exchange (FX) markets, often with limited communication. In this context, the IMF staff has reviewed ER policy advice and implementation strategies for CCA countries.
Item Description:<strong>Off-Campus Access:</strong> No User ID or Password Required
<strong>On-Campus Access:</strong> No User ID or Password Required
Physical Description:1 online resource (43 pages)
Format:Mode of access: Internet
ISSN:2616-5333
Access:Electronic access restricted to authorized BRAC University faculty, staff and students