Monetary anchors play a central role in the practice of monetary policy in LFDCs. Not all LFDCs have an explicit monetary anchor, but if so they rely on three alternative frameworks: exchange rate targeting, monetary targeting, and inflation targeting. This chapter discusses, for each nominal anchor, the advantages, drawbacks, and prerequisites for adopting it, the modalities of implementing it, strictly or flexibly, and the various challenges it raises. The presentation combines theoretical arguments, discussions of empirical evidence, and analysis of selected experiences of LFDCs. The special case of anchors in dollarized economies is examined in depth. The chapter contains two appendices. The first deals with international reserves and their international borrowing arrangements. The second is a case study of monetary unions in sub-Saharan Africa.