Implementing Official Dollarization
IMF Working Papers, April 1, 2010
Source details
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- Implementing Official Dollarization
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Bibliographic details
- Authors: Åke Lönnberg, Luis Ignacio Jácome
- Published: April 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455200658.001
Purpose and scope
- Identifies key aspects that countries willing to officially dollarize must necessarily address.
- Aimed at providing preliminary guidance to policy makers and practitioners adopting official dollarization.
- Does not take a position on how appropriate this monetary arrangement is.
- Briefly illustrates experiences from Ecuador, El Salvador, Kosovo, Montenegro, and Timor-Leste.
Critical institutional bases
- Discusses the critical institutional bases necessary to unilaterally introduce a new legal tender.
- Highlights the role of central bank legal and operational arrangements in the transition to a new currency.
Operational issues to smooth the transition
- Describes relevant operational issues to smooth the transition toward the use of the new currency.
- Addresses practical considerations for implementing the change in legal tender and day-to-day monetary operations.
Structural reforms for sustainability
- Identifies key structural reforms that are necessary to favor the sustainability over time of this monetary regime.
- Emphasizes reforms to support long-term viability of official dollarization.
Case experiences summarized
- Draws on country experiences from:
- Ecuador
- El Salvador
- Kosovo
- Montenegro
- Timor-Leste
Subject areas and keywords
- Subject: Banking, Currencies, Dollarization, Financial crises, Inflation
- Keywords: central bank, country, currency, interest rate, WP