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Determination of Parallel Market Exchange Rate Premium
Department of Economics, University of Ibadan, Ibadan, Nigeria
- 1 Department of Economics, University of Ibadan, Ibadan, Nigeria
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Abstract
A model of the determination of parallel market exchange rate premium in liberalized economies is presented. Clear distinction is made between fundamental and nominal determinants with economic justification(s) given for every variable. Likely data problems that may arise during implementation are discussed and suggestions on circumventing are made.
KeywordsForeign Exchange MarketParallel Market Exchange Rate PremiumShort RunLong Run
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