Dual Markets: The Case of the Syrian Arab Republic (Double marché des changes: le cas de la République arabe syrienne) (Mercados dobles: El caso de la República Arabe Siria)
The article surveys the performance of the dual exchange market and its contribution to Syria's overall balance of payments position during the period 1964-71. An econometric model is developed, with explanatory functions for the demand and supply of foreign exchange, together with a function e...
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Veröffentlicht in: | IMF staff papers 1975-07, Vol.22 (2), p.456-468 |
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Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | The article surveys the performance of the dual exchange market and its contribution to Syria's overall balance of payments position during the period 1964-71. An econometric model is developed, with explanatory functions for the demand and supply of foreign exchange, together with a function explaining the rate-setting behavior of the Syrian authorities. The model is applied to one major period in the history of the market. Although the items included in the dual market expanded over this period of time, the major transactions that it covered included luxury imports, nontraditional exports and all private capital movements. The conclusions drawn from the study show that for the period 1964-66 a substantial improvement in Syria's balance of payments position was achieved with the help of the parallel market. This improvement resulted from an effective devaluation for the items moved to the parallel market and reflects the relatively high export and import elasticities for these items. Other interesting findings include the strong effect of the domestic liquidity variable on the demand for foreign exchange and also the successful rate-setting performance of the Syrian authorities in light of their objectives. Analysis of the subsequent period, during which the dual exchange market was used (1967-71), did not yield any meaningful results because of the use by the authorities of exchange control practices and extensive state trading. /// Dans cet article, les auteurs passent en revue le fonctionnement du double marché des changes en Syrie, ainsi que son influence sur la position de la balance globale des paiements pendant la période 1964-71. Ils établissent un modèle économétrique assorti de fonctions explicatives de la demande et de l'offre de devises, ainsi qu'une fonction expliquant le mécanisme de fixation des taux employé par les autorités syriennes. Ce modèle est appliqué à l'une des périodes les plus importantes du fonctionnement du double marché. Bien que le nombre d'opérations soumises au double marché se soit accru pendant cette période, celles-ci portaient principalement sur les importations de produits de luxe, les exportations non traditionnelles et tous les mouvements de capitaux privés. Les conclusions de l'étude indiquent que le marché "parallèle" a permis de réaliser une amélioration substantielle de la position de balance des paiements de la Syrie pendant la période 1964-66. Cette amélioration est attribuable à une dévaluation de fait pour l |
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ISSN: | 0020-8027 1020-7635 1564-5150 |
DOI: | 10.2307/3866484 |