IMF Working Papers

Cross-Border Payments Integration in Latin America and the Caribbean

By Dimitris Drakopoulos, Yibin Mu, Dmitry Vasilyev, Mauricio Villafuerte

June 14, 2024

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Dimitris Drakopoulos, Yibin Mu, Dmitry Vasilyev, and Mauricio Villafuerte. Cross-Border Payments Integration in Latin America and the Caribbean, (USA: International Monetary Fund, 2024) accessed November 8, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Cross-border payment inefficiencies are a significant barrier to trade both within Latin America and the Caribbean (LAC) and between LAC and other regions. This paper provides a comprehensive review of historical efforts undertaken by various countries within the LAC region to address these challenges. We also explore the potential of recent financial innovations, such as digital currencies and blockchain technology, to enhance cross-border payments. While new technologies do not substitute for prudent and credible macroeconomic policies, leveraging these technologies can help LAC countries reduce transaction costs and times, thus enhancing economic efficiency and fostering deeper regional and global trade relationships.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Currencies, Economic integration, Financial inclusion, Financial markets, Money, Payment systems

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Caribbean, Central America, Cross-border payment inefficiency, Cross-Border Payments, Cross-border payments integration, Currencies, East Asia, Economic Integration., Financial inclusion, Financial Innovation, Global, Integration in Latin America and the Caribbean, International Trade, LAC payment infrastructure, Payment arrangement, Payment systems, South America

Publication Details

  • Pages:

    27

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2024/119

  • Stock No:

    WPIEA2024119

  • ISBN:

    9798400279584

  • ISSN:

    1018-5941

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