01775cas a2200241 a 4500 AALejournalIMF010144 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451925197 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Foreign Currency Deposits in Developing Countries-Origins and Economic Implications. Washington, D.C. : International Monetary Fund, 1987. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The growing importance of foreign currency deposits (FCDs) in some developing countries has raised numerous issues, particularly regarding the effectiveness of economic policies. This paper discusses factors that influence the emergence of FCDs and their impact on key macroeconomic relations. It is shown that while FCDs render more visible the changes in the economic structure occasioned by the shift in residents' portfolio asset preferences, these changes essentially reflect currency substitution that often prevails prior to the introduction of FCDs. Moreover, FCDs provide only limited scope for effectively addressing the external and domestic imbalances that contribute to the growth in currency substitution. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1987/012 Full text available on IMF http://elibrary.imf.org/view/journals/001/1987/012/001.1987.issue-012-en.xml IMF e-Library