Reserve Pooling in the Eastern Caribbean Currency Union and the CFA Franc Zone: A Comparative Analysis
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Summary:
The paper presents a comparison of the gains from the pooling of reserves, and hence reserve variability, in the Eastern Caribbean Currency Union (ECCU) and the CFA franc zone. The results indicate that countries within the ECCU area have achieved greater balance of payments protection than the CFA zone countries from the pooling of reserves. Unanticipated changes in the terms of trade lowered reserves in the CFA relative to the ECCU, which may reflect a greater reliance on primary commodities in the CFA compared with services in the ECCU.
Series:
Working Paper No. 2001/104
Subject:
Central banks Currencies Economic integration International trade Monetary unions Reserve assets Reserve positions Reserves management Terms of trade Treasury bills and bonds
English
Publication Date:
August 1, 2001
ISBN/ISSN:
9781451852769/1018-5941
Stock No:
WPIEA1042001
Pages:
31
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