Measuring exchange rates in poor countries

This International Monetary Fund paper examines the difficulties in determining the real exchange rate in low-income countries.

The paper describes various methodologies used to calculate real exchange rates, before discussing the difficulties in using them to calculate rates for low income countries and proposing alternative measures of competitiveness.

The alternative measures are used to rank countries' competitiveness based on 2006 data.

To read the paper in full, click here

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