01706cas a2200253 a 4500 AALejournalIMF001683 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451845075 1018-5941 BD-DhAAL BD-DhAAL Flood, Robert. Anticipated Exchange Rate Reforms / Robert Flood, Pierre-Richard Agenor. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Exchange rate reforms in developing countries have often aimed at floating the exchange rate in an attempt to unify the official and parallel markets for foreign exchange. This paper examines the anticipatory dynamics associated with such reforms. The analysis shows that if the future unified exchange rate is more depreciated than the prevailing official rate, a pre - announced reform will lead to a depreciation of the parallel rate upon announcement and, during the transition period, a rising premium, an increase in the rate of reserve losses, and possibly to an output contraction and an appreciation of the real exchange rate. Mode of access: Internet Agenor, Pierre-Richard. IMF Working Papers; Working Paper ; No. 1992/032 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/032/001.1992.issue-032-en.xml IMF e-Library