IMF Staff Country Reports

Tonga: Selected Issues and Statistical Appendix

Publication Date:

February 27, 2003

Electronic Access:

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Summary:

This Selected Issues paper and Statistical Appendix reviews the past conduct of monetary policy of Tonga. The paper considers the problems in the current system and discusses the policy options available to the authorities. It reviews Tonga’s exchange rate policy and explores its effectiveness in light of the economy’s structure and macroeconomic developments. The paper also discusses some of the key features of the framework supporting the Tonga Trust Fund. Its main shortcomings are assessed in light of the best international practices and some lessons for the future are discussed.

Series:

Country Report No. 2003/037

Subject:

Banking Central banks Credit Exchange rate arrangements Foreign exchange International reserves Monetary policy Money Open market operations Reserve requirements