Euro : Implications for Latin America and the Caribbean

The paper analyses the various channels that may impact the region after the emergence of euro as an international currency. The paper shows that financial aspects may be the more relevant for Latin America. Exchange rate policy will also be affected as large swings in bilateral exchange rate between the US Dollar and Euro were already anticipated at the time of writing the report. The medium- to long-term consequences of an increasingly bipolar but asymmetrical international monetary system will have to be included in the Latin America national exchange rate policies, enhancing, inter alia, the possibility of adopting anchor baskets