Cover IMF Working Papers
Reserve Requirementson Foreign Currency Deposits in Sub-Saharan Africa: Main Features and Policy Implications
Author:
Mr. Arto Kovanen
Search for other papers by Mr. Arto Kovanen in
Current site
Google Scholar
PubMedClose
Series:
IMF Working Papers
Volume/Issue:
Volume 2002: Issue 065
Language:
English
Publication Date:
01 Apr 2002
DOI:
https://doi.org/10.5089/9781451848694.001
ISBN:
9781451848694
ISSN:
1018-5941
Pages:
19
Keywords:
WP; deposit; foreign currency; central bank bank deposit; deposit inflow; reserve requirements; foreign currency deposits; liquidity management; deposit liability; money multiplier; fiscal policy decision; Bank deposits; Currencies; Monetary base; Open market operations; Sub-Saharan Africa; 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.
Download PDF (569.9 KB) Download Epub
This paper reviews the reserve requirement arrangements of sub-Saharan Africa, focusing on the differences between reserve requirements on domestic- and foreign-currency deposits. The reserve requirement systems in sub-Saharan Africa are relatively simple and transparent, but in some countries high unremunerated reserve ratios impose a significant implicit tax on the banks. The currency denomination of the foreign-currency reserve deposits raises concern in countries undergoing large macroeconomic changes or experiencing exchange rate volatility.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2002: Issue 065