Financial Dollarization PDF Download
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| Author | : Eduardo Levy Yeyati |
| Publisher | : MIT Press |
| Total Pages | : 364 |
| Release | : 2003 |
| Genre | : Business & Economics |
| ISBN | : 9780262122504 |
Download Dollarization Book in PDF, ePub and Kindle
Theoretical and empirical analysis of de jure dollarization. With the persistent instability of international financial markets, emerging economies are exploring new ways to reduce exposure to capital flow volatility. Some analysts argue that financially open economies are best served by more flexible regimes, while others argue in favor of extreme exchange rate regimes that have a strong commitment to a fixed parity or dispense with an independent currency. The successful launch of the euro has made more realistic the prospect of replacing a national currency with a strong foreign one. Recent examples include the adoption of the US dollar by Ecuador and El Salvador. The introduction of a foreign currency as sole legal tender, termed full (de jure) dollarization, has been the center of much political and academic debate. This book provides a comprehensive analysis of the issues from both theoretical and empirical perspectives. The topics discussed include the role of balance sheet effects, the linkage between currency risk and country risk, the impact of dollarization on trade, financial integration and credibility, the implications of dollarization for the lender of last resort, and the institutional and political economy aspects of dollarization.
| Author | : A. Armas |
| Publisher | : Springer |
| Total Pages | : 349 |
| Release | : 2006-07-14 |
| Genre | : Business & Economics |
| ISBN | : 0230380255 |
Download Financial Dollarization Book in PDF, ePub and Kindle
This volume provides a rigorous and balanced perspective on the causes and implications of dollarization, and the basic policies and options to deal with it: the adaptation of the monetary and prudential frameworks, the development of local-currency substitutes, and the scope for limiting dollarization through administrative restrictions.
| Author | : Mr.Juan S Corrales |
| Publisher | : International Monetary Fund |
| Total Pages | : 45 |
| Release | : 2019-01-22 |
| Genre | : Business & Economics |
| ISBN | : 1484393198 |
Download Financial Dollarization of Households and Firms: Does It Differ? Book in PDF, ePub and Kindle
Using a newly complied and extended database from International Financial Statistics, and applying different panel-regression techniques, this paper documents the evolution of households’ and firms’ dollarization over the past decade. We assess the macroeconomic determinants of dollarization for households and firms and explore differences between high and low-income countries. We find that households’ and firms’ dollarization in loans and deposits are weakly explained by the currency substitution model, except in low income countries, where inflation plays a significant role. Instead, market development variables such as financial deepening, access to external debt and FX finance as well as other market considerations are key to explain the dynamics of deposits and loans dollarization, regardless of the level of income.These factors can account for a significant fraction of the dollarization, but using a variance decomposition model, there is evidence that a non-negligible portion has yet to be explained. This suggests that there are key determinants for household and firm dollarization that are not fully captured by traditional macroeconomic explanatory variables.
| Author | : Patrick Honohan |
| Publisher | : World Bank Publications |
| Total Pages | : 52 |
| Release | : 2003 |
| Genre | : Banks and banking |
| ISBN | : |
Download Dollarization of the Banking System Book in PDF, ePub and Kindle
De Nicolo, Honohan, and Ize assess the benefits and risks associated with dollarization of the banking system. The authors provide novel empirical evidence on the determinants of dollarization, its role in promoting financial development, and on whether dollarization is associated with financial instability. They find that: The credibility of macroeconomic policy and the quality of institutions are both key determinants of cross-country variations in dollarization. Dollarization is likely to promote financial deepening only in a high inflation environment. Financial instability is likely higher in dollarized economies. The authors discuss the implications of these findings for financial sector and monetary policies.
| Author | : Mr.Sebastian Sosa |
| Publisher | : International Monetary Fund |
| Total Pages | : 25 |
| Release | : 2011-01-01 |
| Genre | : Business & Economics |
| ISBN | : 1455211885 |
Download What is Driving Financial De-Dollarization in Latin America? Book in PDF, ePub and Kindle
In the last decade, a group of Latin American countries (Bolivia, Paraguay, Peru, and Uruguay) experienced a gradual, yet sustained decline in financial dollarization. This paper documents the stylized facts and uses a standard VAR approach to examine the drivers of both deposit and credit de-dollarization. It finds that the exchange rate appreciation has been a key factor explaining deposit de-dollarization. The introduction of prudential measures to create incentives to internalize the risks of dollarization (including an active management of reserve requirement differentials), the development of a capital market in local currency, and de-dollarization of deposits have all contributed to a decline in credit dollarization. Continuing efforts on these fronts, while maintaining macroeconomic stability and strong fundamentals, would help deepening de-dollarization.
| Author | : Mr.Geoffrey J Bannister |
| Publisher | : International Monetary Fund |
| Total Pages | : 39 |
| Release | : 2018-09-11 |
| Genre | : Business & Economics |
| ISBN | : 1484373367 |
Download Dollarization and Financial Development Book in PDF, ePub and Kindle
Despite significant strides in financial development over the past decades, financial dollarization, as reflected in elevated shares of foreign currency deposits and credit in the banking system, remains common in developing economies. We study the impact of financial dollarization, differentiating across foreign currency deposits and credit on financial depth, access and efficiency for a large sample of emerging market and developing countries over the past two decades. Panel regressions estimated using system GMM show that deposit dollarization has a negative impact on financial deepening on average. This negative impact is dampened in cases with past periods of high inflation. There is also some evidence that dollarization hampers financial efficiency. The results suggest that policy efforts to reduce dollarization can spur faster and safer financial development.
| Author | : Mr.Luis Catão |
| Publisher | : International Monetary Fund |
| Total Pages | : 25 |
| Release | : 2016-04-26 |
| Genre | : Business & Economics |
| ISBN | : 1484341376 |
Download Financial De-Dollarization Book in PDF, ePub and Kindle
We re-appraise the cross-country evidence on the dollarization of financial systems in emerging market economies. Amidst striking heterogeneity of patterns across regions, we identify a broad global trend towards financial sector de-dollarization from the early 2000s to the eve of the global financial crisis of 2008–09. Since then, de-dollarization has broadly stalled or even reversed in many economies. Yet a few of them have continued to de-dollarize. This suggests that domestic factors are also important and interact with global factors. To gain insight into such an interaction, we examine the experience of Peru since the early 1990s and find that low global interest rates, low global risk-aversion, and high commodity prices have fostered de-dollarization. Domestic macro-prudential measures that raise the relative cost of domestic dollar loans and the introduction and adherence to inflation targeting have also been key.
| Author | : Mr.Sami Ben Naceur |
| Publisher | : International Monetary Fund |
| Total Pages | : 21 |
| Release | : 2015-09-23 |
| Genre | : Business & Economics |
| ISBN | : 1513598341 |
Download How to De-Dollarize Financial Systems in the Caucasus and Central Asia? Book in PDF, ePub and Kindle
Dollarization rates in the Caucasus and Central Asia (CCA) region are among the highest in the world, with adverse consequences for macroeconomic stability, monetary policy transmission, and financial sector development. Using dynamic panel data models, we find that foreign exchange deposits and loans in the CCA are mainly driven by volatile inflation and exchange rates, low financial depth, and asymmetric exchange rate policies biased toward depreciation. Although there is no unique formula for success, empirical studies and cross-country experiences suggest that credible monetary and exchange rate frameworks, low and stable inflation, and deep domestic financial markets are essential ingredients of any de-dollarization strategy. In implementation, policymakers need to consider proper sequencing of policies, effective communication as well as risks from potential financial disintermediation and instability, and/or capital flight.
| Author | : Mr.Gianni De Nicolo |
| Publisher | : International Monetary Fund |
| Total Pages | : 45 |
| Release | : 2003-07-01 |
| Genre | : Business & Economics |
| ISBN | : 1451856660 |
Download Dollarization of the Banking System Book in PDF, ePub and Kindle
This paper assesses the benefits and risks associated with dollarization of the banking system. We provide novel empirical evidence on the determinants of dollarization, its role in promoting financial development, and on whether dollarization is associated with financial instability. We find that: (a) the credibility of macroeconomic policy and the quality of institutions are both key determinants of cross-country variations in dollarization; (b) dollarization is likely to promote financial deepening only in a high inflation environment; and (c) financial instability is likely higher in dollarized economies. The implications of these findings for financial sector and monetary policies are discussed.
| Author | : Dominick Salvatore |
| Publisher | : Oxford University Press, USA |
| Total Pages | : 491 |
| Release | : 2003 |
| Genre | : Business & Economics |
| ISBN | : 019515536X |
Download The Dollarization Debate Book in PDF, ePub and Kindle
This book takes a global approach to one of today's most controversial topics in business: Dollarization. With the collapse of the former Soviet Union, and the formation of the Euro in Europe, many countries are debating whether or not a common currency is in their best interest. This intriguing volume brings together the leading participants in the current dollarization debates.
