Through its affiliated Federations and Associations, CACB
represents millions of micro, small and medium companies, many of which want to participate in Brazil's growing business with international companies," said John Gardiner, CEO of B2Brazil.
The CACB simply acts as a monetary regulator of these preexisting central banks.
In order to establish the CACB as a last resort bank, one of the primary start-up concerns would be to obtain enough reserves in order to intervene when needed due to monetary contractions in the market.
In a complete integration banking system, countries will give complete control to the CACB to control monetary policy, including reserves, inflation, and interest rates.
Because Central America does not, at this time, have a common currency nor are they working toward attaining one, something else will have to be used as a monetary base for the CACB.
This is not to say that the US dollar will replace the existing national currencies, but rather that it will be the tender in which the CACB will store its reserves.
Instead of operating as six individual central banks, the nations of El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica, and Panama would be able to reap the benefits that the more streamlined CACB will offer.
One important benefit of the CACB is in the area of trade.
Formerly national affairs such as interest rates and prices would be known and regulated by the CACB.
Another important benefit of the CACB is the greater availability of capital as a result.
The introduction of the CACB would change this dynamic, drastically reducing the amount of money a national central bank would be required to hold in this section.
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