This paper explores the influence of trader (or cambio) market power in determining the foreign exchange market bid-ask spread. It presents a theoretical model that incorporates the notion of oligopolistic market power into the foreign exchange market. The econometric results are consistent with...

This paper notes that a high sterilization coefficient plus a de facto pegged exchange rate indicates the existence of dual nominal anchors. The econometric evidence presented shows that several Caribbean economies with fixed exchange rate regimes also possess high sterilization coefficients....

Starting in 2004 the Guyanese foreign exchange rate has been remarkably stable relative to earlier periods. This paper explores the reasons for the stability of the rate. First, the degree of concentration in the foreign exchange market has increased, thus making the task of moral suasion...

This paper explores the influence of trader (or cambio) market power in determining the foreign exchange market bid-ask spread. In particular, it presents a theoretical model that incorporates the notion of oligopolistic power into the foreign exchange market. The econometric analysis...

A historical overview of structural change is presented to motivate the calculation of sectoral factor productivities for Guyana and Suriname using a structural VAR and a novel resource-dominant identification strategy. The paper finds that the extractive sector lowers manufacturing output in...

The study attempts to ascertain the determinants of non-performing loans in the Guyanese banking sector using a panel dataset and a fixed effect model similar to Jimenez and Saurina (2005). Consistent with international evidence we find that the real effective exchange rate has a significant...

Starting in 2004 the Guyanese foreign exchange rate has been remarkably stable relative to earlier periods. This paper explores the reasons for the stability of the rate. First, the degree of concentration in the foreign exchange market has increased, thus making the task of moral suasion...

The study attempts to ascertain the determinants of non-performing loans in the Guyanese banking sector using a panel dataset and a fixed effect model similar to Jimenez and Saurina (2005). Consistent with international evidence we find that the real effective exchange rate has a significant...

Utilizing the method of generalized least squares (GLS), the paper investigates the factors which determine bid-ask spread in the foreign exchange (FX) market of Guyana. The econometric exercise is based on a rich dataset of trading volumes as well as the buying and selling exchange rates for...

Purpose – The purpose of this paper is twofold. First, it estimates the sterilization coefficients for several Caribbean countries. Second, it contributes to the literature by providing a conceptual framework for understanding why regional economies with fully pegged exchange rate regimes have...