dual exchange rate system
managed floating rate system
market determined exchange rate system
multiple exchange rate system
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Discussions (4)
A. Dual exchange rate system - This precisely describes two coexisting exchange rates (typically one official and one market-determined)
B. Managed floating rate system - This involves a single exchange rate with occasional central bank intervention
C. Market determined exchange rate system - This implies a single, fully market-driven rate
D. Multiple exchange rate system - While similar, this typically refers to different rates for different types of transactions rather than an official/market duality
The best fit is:
A. Dual exchange rate system
This is a common arrangement in some developing economies where the government maintains an official rate while allowing a parallel market rate to exist. Nigeria has experienced this system at various times in its economic history.
