The least persistence is exhibited by the first two interwar regimes, and the greatest persistence occurs under the
predevaluation Bretton Woods period and the current float.
It shows that bank 1 has the largest exposure to country A, as loans to country A represent 33 percent of its
predevaluation portfolio, versus 10 percent for bank 2.
By January 1996, import levels were back to
predevaluation levels.
That marked the beginning of a currency crisis that reached a climax on January 30, 1995, when the exchange rate reported a record high of 6.43 pesos per dollar, 86 percent above its
predevaluation level.
Because of technique applied and use of
predevaluation weights to compute index numbers, the official indices have failed to grasp the actual impact of devaluation coupled with other factors on price increase which is estimated to be more than .18 per cent to 25 per cent in a single year.
It gives the magnitude of the nominal devaluation in period t while the other measures the percentage change in the real exchange rate from its
predevaluation level for each of the periods t, t+1, t+2.