Foreign Exchange Market Organization in Selected Developing and Transition Economies

Abstract

The foreign exchange market microstructures in developing and transition economies are characterized by the results from the IMF''s 2001 Survey on Foreign Exchange Market Organization. The survey found that these markets are usually unified onshore spot markets for U.S. dollars, where transactions are concentrated at the bank-customer level. The trading mechanisms are usually dealer or mixed dealer/auction markets; the degree of transparency is often low; settlement systems remain risky; and the scope for price discovery is variable.Developing countries;Transition economies;foreign exchange, foreign exchange market, exchange rate, exchange markets, foreign exchange markets, exchange rates, exchange rate regimes, exchange rate regime, foreign exchange auctions, exchange auctions, foreign exchange transactions, exchange transactions, interbank market, exchange rate regime classification, exchange rate risk, de facto exchange rate regime, floating exchange rate regimes, floating exchange rate, exchange rate volatility, settlement risk, currency exchange, foreign exchange operations, prudential regulation, flexible exchange rate regimes, flexible exchange rate, exchange rate flexibility, bank accounts, exchange operations, banking, exchange restrictions, multiple currency practices, bank customer, exchange rate pressures, limited exchange rate flexibility, bank of international settlements, currency substitution, currency boards, exchange rate fluctuations, currency transactions, capital mobility, banking system, currency depreciation, working capital, exchange arrangements, exchange rate arrangements, prevailing exchange rates, bank of international settlements (bis), bank of thailand, exchange rate dynamics, currency appreciation, determinant of exchange rate, exchange options, exchange market activity, excess demand, foreign exchange risk, bank runs, bank account, import bank, exchange risk, correspondent bank, exchange rate adjustment, bank management, bank vault, exchange rate adjustments, exchange rate determination, floating exchange rates, multiple exchange rate, exchange rate classification, prevailing exchange rate, exchange controls, segmentation, exchange rate risks, history of exchange rate