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Choice of Exchange Rate Regimes

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The Macroeconomy of Central America

Part of the book series: Procyclicality of Financial Systems in Asia ((IMF))

Abstract

The 20 economies in the Central America and Caribbean region (CAC)1 share a number of common structural features. Compared with other developing countries, they tend to be small, open to trade and financial flows, and often have domestic financial markets at an earlier stage of development. At the same time, these economies employ a wide range of exchange rate regimes: full dollarization in El Salvador and Panamá, a fixed peg in the six countries of the Eastern Caribbean Currency Union and Bahamas, Barbados and Belize, crawling pegs or bands in Costa Rica, Honduras, and Nicaragua, and various degrees of managed floats in the nine other countries.

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Authors
  1. Robert Rennhack
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  2. Erik Offerdal
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  3. Valerie Mercer-Blackman
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Editor information

Editors and Affiliations

  1. International Monetary Fund, USA

    Erik Offerdal

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© 2004 International Monetary Fund

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Rennhack, R., Offerdal, E., Mercer-Blackman, V. (2004). Choice of Exchange Rate Regimes. In: Rennhack, R., Offerdal, E. (eds) The Macroeconomy of Central America. Procyclicality of Financial Systems in Asia. Palgrave Macmillan, London. https://doi.org/10.1057/9780230379596_5

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