Informal Currency Deals and New Official Customer Dealing: Who Chooses Which?

  • Koji KuboEmail author


Normal trade export receipts—formerly labeled as “export earnings”—are still traded directly between private exporters and importers regardless of their legal uses. By using the original data taken from a survey of private firms, we examine which firm attributes are related to their uses of informal currency deals outside banks. The empirical results of probit regression show that firms’ operational length—a proxy variable for habituation to the unofficial market—is not associated with the use of informal currency deals. On the other hand, larger firms tend to have used official customer dealing at banks, implying that secured and convenient transactions could be a competitive edge for banks to absorb informal currency deals.


Customer dealing Informal currency deal Hysteresis Probit regression Myanmar 


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Copyright information

© IDE-JETRO 2018

Authors and Affiliations

  1. 1.Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO)ChibaJapan

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