Exchange rate liberalization and market efficiency in the Gambia

Brendan M. Walsh

No 199320, Working Papers from School of Economics, University College Dublin

Abstract: This paper examines the experience of The Gambia following the liberalization of its exchange rate and financial markets in the mid-1980's. It is shown that although nominal interest rates are high, and the real interest rate positive, there is no evidence of systematic excess returns to holders of Gambian treasury bills. The outcome suggests that floating the exchange rate can avert the "peso problem" and work efficiently even in an extremely thin foreign exchange market.

Keywords: Exchange rates; Floating; Libearlization; Efficient markets; Interest rates--Gambia; Foreign exchange rates--Gambia; Foreign exchange--Gambia (search for similar items in EconPapers)
JEL-codes: F31 O16 (search for similar items in EconPapers)
Date: 1993-07
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10197/1731 First version, 1993 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:199320

Access Statistics for this paper

More papers in Working Papers from School of Economics, University College Dublin Contact information at EDIRC.
Bibliographic data for series maintained by Nicolas Clifton ().