Conclusions
The system of multiple exchange rates thus has serious disadvantages, which become even graver in some developing countries where there is a combination of several unfavourable factors. Such factors are: Inflation, insufficient savings, irrational behaviour on the part of private economic subjects as well as the state, intense speculative activity, ponderous officialdom and the like. Where such conditions obtain multiple exchange rates are therefore not to be recommended and should where they exist gradually be discontinued. The present analysis has shown that differentiated exchange rates offer no such overwhelming advantages over other means of influencing foreign trade as to make them recommendable.
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References
Other countries, but of secondary importance, mentioned by the German Federal Bank are: Hongkong, Laos, South Korea, South Vietnam and Syria. See: “Die Währungen der Welt” (“The Currencies of the World”), published by the German Federal Bank, Frankfurt/M, Sept. 1966.
See H. Hesse: “Der Außenhandel in der Entwicklung unterentwickelter Länder” (The Part Played by Foreign Trade in the Development of Underdeveloped Countries), Tübingen 1961, p. 78.
H. Hesse: The Part Played by Foreign Trade in the Development of Undeveloped Countries, op. cit. H. Hesse: “Der Außenhandel in der Entwicklung unterentwicklter Länder” (The Part Played by Foreign Trade in the Development of Underdeveloped Countries), Tübingen 1961, pages 82.
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Friedrichs, D. The splitting of exchange rates. Intereconomics 2, 303–307 (1967). https://doi.org/10.1007/BF02930547
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DOI: https://doi.org/10.1007/BF02930547