Reserve Requirementson Foreign Currency Deposits in Sub-Saharan Africa : Main Features and Policy Implications

Author/Editor:

Arto Kovanen

Publication Date:

April 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 02/65

Subject:

English

Publication Date:

April 1, 2002

ISBN/ISSN:

9781451848694/1018-5941

Stock No:

WPIEA0652002

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

19

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