IMF Recommends El Salvador to Maintain Dollarization

The International Monetary Fund endorsed the country's decision to continue with the dollarization process.

Wednesday, October 27, 2010


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After approval of the Monetary Integration Law (2001), which gave way to the dollarization of the economy not everything has gone as desired, the report presented by the IMF showed.

"Jordi Prat, Senior Economist at the Department of the IMF's Western Hemisphere, and one of the authors of the study, said the Salvadoran economy and its ability to respond to international shocks suffered no major change before and after dollarization.

In post-dollarization the economy became less volatile, Prat stated, but not because of the currency exchange system, because there were fewer clashes.

One of the arguments defending the decision of dollarization was that, by lowering interest rates, investment and exports would increase, stimulating economic growth and inflation would remain low,” according to the article in Elmundo.com.sv.



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From a press release issued by the IMF:

On May 11, 2016, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Costa Rica.

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