Lithuania

Lithuania adopted an augmented currency board soon after the introduction of its new currency in 1993, first on the USD and then from 2002 on the euro, and that lasted until its entry into EMU in 2015.

Years Targets and attainment Classification
1993 new Lithuanian currency mid-year, appreciation replaces previous depreciation; bank credit ceilings replaced by indirect measures; no clear framework unstructured discretion UD
1994-2014 currency board on USD from April 1994, with some use of monetary instruments including reserve requirements, rediscount and open market operations, also some limited scope for lending of last resort; exit from currency board to conventional peg considered, postponed and shelved; currency board anchored on euro from February 2002, within ERM2 from June 2004; euro adoption delayed from original target 2007 augmented currency board ACB

Selected IMF references: RED 1994 pp18-19; RED 1995 p30; RED 1996 pp7-12; RED 1998 pp24-6; SR 1999 pp19-20; SR 2000 pp27-8; SR 2001 pp17-18; SR 2009 pp12-13.

Additional sources: Alonso-Gamo et al (2002); Beblavý (2007b); Wolf et al (2008, ch 11).

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