This paper aims to analyse the dynamics of foreign exchange markets in a country facing political uncertainty that prompt capital outflow from the country. The economic environment under investigation is characterized by dual foreign exchange markets: a formal or official market for foreign...

Stock market inefficiency has important implications for both investors and authorities. In an inefficient market investors should doubt the strategy quot;hold-the-marketquot; and adopt the strategy quot;beat-the-marketquot; to pickup the winners. In the mean while the authorities on their part...