To the list of articles30 september 2001
Welfare Effects of Uzbekistan's Foreign Exchange Regime
In addition to transferring about 16% of GDP from exporters to importers, Uzbekistan's quasi-fiscal multiple exchange rate regime generates identifiable welfare losses of 2-8% of GDP on import markets and up to 15% on export markets. These excess burdens have increased substantially with the growing difference of reform strategy: (i) welfare losses will decline overproportionally as exchange rates unify; (ii) exchange rate unification should be supplemented by changing the explicit fiscal system; (iii) at a minimum, Uzbekistan would benefit from moving to an explicit fiscal regime.