Reserve Pooling in the Eastern Caribbean Currency Union and the CFA Franc Zone : A Comparative Analysis

Author/Editor:

Hazel Selvon ; Tracy Polius ; Oral Williams

Publication Date:

August 1, 2001

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:

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. 01/104

Subject:

English

Publication Date:

August 1, 2001

ISBN/ISSN:

9781451852769/1018-5941

Stock No:

WPIEA1042001

Format:

Paper

Pages:

31

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