Currency board sistem and arrangements

II ABSTRACT CURRENCY BOARD SİSTEM AND ARRANGEMENTS Omurzak JOLDOSHBAEV Master Thesis, Department of Economics Supervisor: Prof. Dr. Nejat ERK February 2004, 69 pages The past years have witnessed a revival of interest in the adoption of Currency Board arrangements. This master thesis argues that the successful establishment of a Currency Board requires, in addition to adopting appropriate macroeconomic policies, the authorities make careful preparations on the technical aspects of the transition. Although the range of necessary preparations will vary from country to country, these will generally involve changing the central bank law, reorganizing the government's cash and dept management activities. Additional measures are required for countries that recently experienced banking sector problems. Kev words: Currency Board, Fixed Rate, Convertibility, Exchange Rate.