Answer to Question #211389 in Macroeconomics for Catherine Melita

Question

For any developing country, analyze its exchange rate system and all recent developments in its exchange rate policies. Use these to answer the following questions in your writing: 

Answer 1

Kenya is one of the developing countries. The country adopted a dual exchange rate system and the exchange rate regime is controlled by market demand and supply forces. However, due to recent changes in the economy, the Kenyan exchange rate has been modified to accommodate disequilibrium.