Cover IMF Working Papers
Implementing Official Dollarization
Author: Åke Lönnberg and Mr. Luis Ignacio Jácome
Series:
IMF Working Papers
Volume/Issue:
Volume 2010: Issue 106
Language:
English
Publication Date:
01 Apr 2010
DOI:
https://doi.org/10.5089/9781455200658.001
ISBN:
9781455200658
ISSN:
1018-5941
Pages:
31
Keywords:
WP; central bank; country; currency; interest rate
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 identifies key aspects that countries willing to officially dollarize must necessarily address. Based on country experiences, it discusses the critical institutional bases that are necessary to unilaterally introduce a new legal tender, describes the relevant operational issues to smooth the transition toward the use of the new currency, and identifies key structural reforms that are necessary to favor the sustainability over time of this monetary regime. The paper is aimed at providing preliminary guidance to policy makers and practitioners adopting official dollarization. The paper does not take a position on how appropriate this monetary arrangement is. Experiences from adopting dollarization in Ecuador, El Salvador, Kosovo, Montenegro, and Timor-Leste are illustrated briefly.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund