Download or read book Experience with Floating Interbank Exchange Rate Systems in Five Developing Economies written by Vicente Galbis and published by International Monetary Fund. This book was released on 1993-04-01 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the experience with floating interbank exchange rate systems in five developing countries--The Gambia, Guyana, Jamaica, Nigeria and Sri Lanka--and draws some conclusions about the stability and efficiency of these systems. The experience of these countries illustrates both the difficulties and the advantages of interbank exchange rate markets. The main conclusion is that these markets can operate relatively well with a minimum banking infrastructure, provided that the authorities remove legal and institutional impediments to the free operation of these markets including, in particular, exchange restrictions. Any residual restrictions that may remain will likely give rise to the continued existence of parallel markets.