Abstract

Currency board arrangements (CBAs) have undergone a revival.1 Four countries have undertaken IMF-supported adjustment programs with a CBA, Argentina, Djibouti, Estonia, and Lithuania. Bosnia and Herzegovina and Bulgaria are each about to establish one. El Salvador expressed interest in establishing one as a way to enhance credibility and policy transparency. For the same reasons, proponents of CBAs have made the case for establishing them in other countries, such as Mexico following the 1995 crisis, Peru, Brazil, and Russia.

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