Cross-Border Payments Integration in Latin America and the Caribbean

Author/Editor:

Dimitris Drakopoulos ; Yibin Mu ; Dmitry Vasilyev ; Mauricio Villafuerte

Publication Date:

June 14, 2024

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Cross-border payment inefficiencies are a significant barrier to trade both within Latin America and the Caribbean (LAC) and between LAC and other regions. This paper provides a comprehensive review of historical efforts undertaken by various countries within the LAC region to address these challenges. We also explore the potential of recent financial innovations, such as digital currencies and blockchain technology, to enhance cross-border payments. While new technologies do not substitute for prudent and credible macroeconomic policies, leveraging these technologies can help LAC countries reduce transaction costs and times, thus enhancing economic efficiency and fostering deeper regional and global trade relationships.

Series:

Working Paper No. 2024/119

Frequency:

regular

English

Publication Date:

June 14, 2024

ISBN/ISSN:

9798400279584/1018-5941

Stock No:

WPIEA2024119

Format:

Paper

Pages:

27

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