In the period from November 20, 1950, to March 20, 1951, the Fund was consulted in connection with the modification of foreign exchange systems by three of its member governments. On November 20 the Fund announced its agreement to certain modifications proposed by the government of Iran. Iran was to continue to retain in effect three foreign exchange rates: 1) an official rate, 32.5 rials to the dollar, for governmental transactions and transactions with the Anglo-Iranian Oil Company; 2) a certificate rate, 40 rials to the dollar, for essential imports; and 3) a third rate for exports other than oil and for nonessential imports. The latter rate, which formerly had been permitted to fluctuate in a free market, was fixed at 48.75 rials to the dollar and all transactions were to be conducted through official banks. The Fund and the Iranian government were to continue consultations towards the eventual unification of the Iranian foreign exchange system. Agreement was announced on March 3 to the proposed devaluation of Paraguayan currency from 3.09 to 6 guaranies to the dollar. Consultations between Paraguay and the Fund had also been held, according to the announcement, on the modification of the country's multiple currency system. A further announcement of March 20 revealed that Columbia had proposed to the Fund measures to simplify its foreign exchange system and reduce its restrictions on imports. The new system, to which the Fund gave its approval, would not involve a change in Columbia's par value as fixed by the Fund. A new exchange rate of 2.50 pesos to the dollar was established for all foreign exchange payments and all foreign exchange proceeds other than those for coffee exports. For a period of not less than six months, 25 percent of the coffee export exchange would operate at the new rate and the remaining 75 percent would operate at a buying rate of 1.95 pesos to the dollar. All licensing restrictions on imports would be removed, with the exception of a prohibited list of specified luxury products, and the differential exchange taxes, other than a uniform stamp tax, and all mixed rate arrangements would be abolished. The Fund announced on March 19 the establishment of the initial par value for the Pakistani rupee at 3.30852 rupees to the dollar, the rate proposed by the government of Pakistan.
Robust estimation of nonstationary, fractionally integrated, autoregressive, stochastic volatility
