The implementation of currency board-like monetary systems in Latin America are on the rise. After Argentina introduced its own version of a currency board-like system in 1990, many countries in the rest of the region watched closely the impact of its new monetary system and have even contemplated instituting one. Only within the last two years, El Salvador and Ecuador have already introduced a currency board-like dollarized monetary system primarily in response to volatile and detrimental inflationary levels, a serious condition seen in much of the region. This report looks at the cuases, current conditions, and influential factors that have led to this monetary wave of change in Latin American.
