Reserve Requirementson Foreign Currency Deposits in Sub-Saharan Africa: Main Features and Policy Implications
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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. 2002/065
Subject:
Bank deposits Banking Central banks Currencies Financial services Monetary base Monetary policy Money Open market operations Reserve requirements
English
Publication Date:
April 1, 2002
ISBN/ISSN:
9781451848694/1018-5941
Stock No:
WPIEA0652002
Pages:
19
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