01631cas a2200241 a 4500 AALejournalIMF007798 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451922387 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Dual Exchange Markets Under Incomplete Separation : An Optimizing Model. Washington, D.C. : International Monetary Fund, 1989. 1 online resource (36 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 This paper constructs and analyzes an optimizing model of dual exchange markets which are incompletely separated owing to the presence of fraudulent cross transactions. The model is used to examine the implications of certain shocks, including devaluation. Devaluation first leads to the emergence of a spread with the financial exchange rate being relatively appreciated vis-a-vis the commercial rate. Over time, the financial rate depreciates beyond the level of the commercial rate. In the final phase of adjustment, the spread declines continuously until a zero spread is restored. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1989/019 Full text available on IMF http://elibrary.imf.org/view/journals/001/1989/019/001.1989.issue-019-en.xml IMF e-Library