Front Matter Page
Office of Executive Director for Afghanistan, Algeria, Ghana, Islamic Republic of Iran, Morocco, Pakistan, and Tunisia
Contents
I. Introduction
II. Foreign Currency Deposits, Fiscal Deficits, and External Debt
III. Foreign Currency Deposits and the Constraints on Financial Policies
A. FCD Scheme and International Reserves
B. Borrowed International Reserves Versus Current Account Adjustment
C. FCDs and the Costs of Accumulating Reserves
D. FCDs, Underinsurance, and International Collateral
E. Implications of FCDs for Financial Policies
IV. FCDs and the Use of National Savings for Domestic Investment
A. Recent Increase in International Reserves and External Borrowing
B. Indexed Financial Instruments
V. Conclusions
Tables
1. Basic Economic Indicators, 1973–2003
2. Foreign Currency Deposits and Official Reserves, 1990/91–2003/04
3. Resident Foreign Currency Deposits (RFCD) and Money Supply, 1990/91–2003/04
4. External Debt, 1991/92–2003/04
Box 1. Evolution of FCDs
Appendix
I. Caballero-Krishnamurthy Model
Appendix Table
A1. Caballero-Krishnamurthy Model
References