ABSTRACT
This chapter aims to evaluating the degree of integration already achieved by the main existing regions and their suitability for engaging in some form of monetary integration, including joint official dollarization. It describes the macroeconomic convergence schemes put in place by some of the regions under study and the attitude of the trade blocks towards possible monetary integration. The analysis is then refined by introducing some additional considerations emphasised by the literature on the choice of exchange rate regimes, including the degree of de facto dollarisation and the existence of credibility problems. The Andean Community was born in 1969 with the signing of the Cartagena Agreement and currently comprises Bolivia, Colombia, Ecuador, Peru and Venezuela. The higher the degree of trade interdependence of a group of countries, the more sense it will make for them to try to stabilise their intra-regional exchange rates, including by establishing a monetary union.
