EXCHANGE RATE REGIME AND ITS IMPACT ON THE MACROECONOMIC EQUILIBRIUM

Rate regime may be characterized by defining its elements, namely: the determination of exchange, the right of residents to hold or not in foreign currency accounts and to transfer foreign currency abroad, the exchange rate limitation, the principles and organization and functioning of foreign exchange market. It is vital, however, the determination of the exchange rate, other factors being more or less simple consequences. In general, the determination of the exchange rate was correlated with the earnings from exports. Some states have applied variations of systems being temporarily fixed, established by the Central Bank, others have opted for a floating exchange rate, initially through an auction mechanism for foreign exchange, and then at a more evoluate stage in mechanisms evolved through interbank market.