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Peculiarities of Exchange Rate Policy under the Floating Exchange Rate Regime in Developing Countries
[Особенности Курсовой Политики В Рамках Режима Плавающего Валютного Курса В Развивающихся Странах]

Author

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  • Kiyutsevskaya, Anna (Киюцевская, Анна)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Morgunov, Vyacheslav (Моргунов, Вячеслав)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Trunin, Pavel (Трунин, Павел)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

Study of features and specifics of formation of exchange rates in the developing countries within the floating regimes allow us to determine the objective backgrounds of monetary authorities' failure to support fixed exchange rate and the conditions requiring not only to manage the demand/supply on the internal currency market but to conduct foreign interventions too. As results of investigation show, de-facto the most of inflation targeting central banks of developing countries conduct operations of currency refinancing and realize operations on foreign currency market. The results indicate that the distinctive feature of exchange rate policy implemented by them is the absence of any objective in the level or change the trajectory of the exchange rate. Essential for understanding the permissible degree of participation of the monetary authorities, are targeted inflation rate formation in the process have the methodological aspects of the classification of de facto implemented exchange rate policy, which have been modified only in 2009.

Suggested Citation

  • Kiyutsevskaya, Anna (Киюцевская, Анна) & Morgunov, Vyacheslav (Моргунов, Вячеслав) & Trunin, Pavel (Трунин, Павел), 2017. "Peculiarities of Exchange Rate Policy under the Floating Exchange Rate Regime in Developing Countries [Особенности Курсовой Политики В Рамках Режима Плавающего Валютного Курса В Развивающихся Стран," Working Papers 031722, Russian Presidential Academy of National Economy and Public Administration.
  • Handle: RePEc:rnp:wpaper:031722
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    References listed on IDEAS

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