We thoroughly describe the workings of the Brazilian interbank exchange rate market: agents, products, regulation, operation and risks. We analyse the recent evolution of the exchange rate market and came to a negative evaluation of the current exchange rate trading system, thereby suggesting an...

In this article, we argue that the EMS experience, of introducing elements of flexibility, so as to overcome the initial rigidity, without deviating from the fundamental aim, may provide a relevant model for the revision of the Stability and Growth Pact (SGP). Although the specific limits being...