Under a free-float
exchange rate mechanism agreed with the IMF.
Summary: Under a free-float
exchange rate mechanism agreed with the IMF.
There are growing speculations that the State Bank of Pakistan has started adopting a flexible
exchange rate mechanism to meet the International Monetary Fund (IMF) condition.
Finance Minister Vladislav Goranov met with the ambassadors of the eurozone countries and Denmark to present Bulgaria's progress in implementing measures to join the ERM II
exchange rate mechanism and the banking union, the line ministry said.
No, not Brexit and what might happen next, but Britain's departure from the European
Exchange Rate Mechanism (ERM) nearly 30 years ago when interest rates were pushed to 15% and billions were spent defending the currency.
Several media reports hinted at IMF demanding reforms which the incumbent government is unwilling to take which include implementation of a free-float
exchange rate mechanism, levying additional taxes and undertaking various reforms and curtail the budget deficit.
At the meeting, the SBP is said to have proposed to the government that flexible
exchange rate mechanism should be adopted from January 2019 onwards.
Amendments to the central bank law are part of the government's plan for joining the
Exchange Rate Mechanism II (ERM II) and the EU's Banking Union.
China's reform of the yuan's
exchange rate mechanism in recent years, which has given consideration to both opening up and risk control, could offer some insights for countries such as India, experts said.
Britain fell out of the European
Exchange rate mechanism, interest rates were hiked by 5% in one day, reserves fell from $18billion to minus $16billion.
Yi also said Beijing will continue to adopt a prudent and neutral monetary policy and deepen the market-oriented reform of the yuan's
exchange rate mechanism. (end) mk.ma