DINAR AND THE EXCHANGE RATE REGIME

Original scientific paper
Autor: Dejan Jovović PhD

Summary: In the first part of this paper advantages and disadvantage of the flexible and fixed exchange rates are examined. In the second part of the paper classification of the exchange rates after the IMF methodology is given. In the third part, the so-called crawling peg exchange rate is presented, as a transitional exchange arrangement for a given period of time. In the fourth part the policy is analysed of a “managed floating”, but overrated, exchange rate and the negative consequences that it has caused. In the fifth part projections are given for the movement of the dinar exchange rate. In the sixth part the “Eurisation” is examined and the reasons why it is not possible to introduce Euro currency in Serbia, as suggested in some quarters. Finally, conclusion is made and the list given of the literature used in this paper.

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