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A regional reserve fund for Latin America

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A regional reserve fund for Latin America

Autor institucional: NU. CEPAL Physical Description: 35 páginas. Editorial: CEPAL Date: February 2014 ECLAC symbol: LC/L.3703 ISSN: 1564-4197


Strengthening the Latin American Reserve Fund (FLAR) by expanding its size and scope in order to encompass a larger number of countries of the region would significantly contribute to financial stability as a regional and global public good. This paper seeks to cast light on the viability, implications and challenges of expanding FLAR to another five countries in the region: Argentina, Brazil, Chile, Mexico and Paraguay.
In our view, regional reserve funds are one of the mechanisms that contribute to a denser international financial architecture and help enhance its capacity to provide financial stability. Greater densification means not only that there is a wider range of tools, but also that there is greater interconnectivity between the institutions that make up the international financial architecture.

Table of contents

Introduction .-- I. Factors for evaluating the financial viability of an expanded FLAR .-- II. Size of an expanded FLAR .-- III. Governance challenges for an expanded FLAR .-- IV. Conclusions.