Dual and multiple exchange rates

Faced with the difficult economic situation, the State may establish a dual or multiple exchange rates. Thus, the online forex trading currency of the country can share more than one course. Unlike systems of fixed and floating exchange rate, the system combines features of both systems mentioned in the same time.

In the system of dual exchange rate fixed rate applies only to certain sectors of the market (import, export).

In the system of multiple course concept remains the same, only the market is divided into many different segments, and each has its own rate, fixed or floating.

The use of multiple rate is considered as a way of setting tariffs and taxes. Eg., A low rate applied to imports of food products, whereas the high rate set on luxuries. Thus, people pay tax for goods that are not considered necessary and important during a crisis. The high exchange rate on certain export goods can be regarded as a tax on profits.

Although the introduction of multiple exchange rates fairly simple procedure, the economists agree on the fact that the imposition of direct taxes and tariffs would be more effective and transparent solution.