Multiple exchange rate system (MERS) : draft

Abstract

Exchange rate policy is now increasingly accepted as of central importance for long-term development strategy and for creating an enabling environment for recovery and equality. As exchange rate policy foreign exchange and the external sector tend to be exaggerated in African countries, these countries have to decide which policies to stabilize and which to adjust. Hence AAF-SAP identifies specific policies that should be used to complement MERS. These are trade policies, differential interest rate policy (DIRP) and fiscal reform.