Independent Currency Authorities: An Analytic Primer

Kent Osband and Delano Villanueva

No 1992/050, IMF Working Papers from International Monetary Fund

Abstract: This paper provides an analytic overview of independent currency authorities (ICAs), sometimes called currency boards. ICAs issue and redeem domestic currency against an exchange standard on demand and back such operations through a 100 percent marginal foreign reserve cover. They also impose significant constraints on the banking system and the budget of the country that operates them. When supporting institutions have been put in place, ICAs appear to have promoted price stability, foreign trade, saving, and investment.

Keywords: WP; currency; ICA.; currency board; crawling peg; foreign currency; Ica arrangement; exchange obligation; Ica need; currency authority; board arrangement; Ica wish; pound sterling; Ica system; issued currency; Currencies; Currency boards; Reserve currencies; Inflation; International reserves; Africa; Asia and Pacific; Caribbean; Eastern Europe; West Africa (search for similar items in EconPapers)
Pages: 30
Date: 1992-07-01
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Citations: View citations in EconPapers (7)

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Journal Article: Independent Currency Authorities: An Analytic Primer (1993)
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