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Independent Currency Authorities: An Analytic Primer
Author:
Kent Osbandnull

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Delano Villanuevanull

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Series:
IMF Working Papers
Volume/Issue:
Volume 1992: Issue 050
Language:
English
Publication Date:
01 Jul 1992
DOI:
https://doi.org/10.5089/9781451846881.001
ISBN:
9781451846881
ISSN:
1018-5941
Pages:
30
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
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 1992: Issue 050