Financial De-Dollarization Is it for Real?

De facto (unofficial) dollarization, defined as the holding by residents of assets and liabilities denominated in a foreign currency, is a policy concern in an increasing number of developing economies. This paper addresses the dollarization debate from this perspective, with the goal of setting the...

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Bibliographic Details
Main Author: Levy Yeyati, Eduardo
Other Authors: Ize, Alain
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2005
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a United States 
653 |a Depository Institutions 
653 |a Government and the Monetary System 
653 |a Payment Systems 
653 |a Banks 
653 |a Dollarization 
653 |a Regimes 
653 |a Monetary economics 
653 |a Value of Firms 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
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653 |a Standards 
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653 |a Capital and Ownership Structure 
653 |a Credit risk 
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653 |a Banks and Banking 
653 |a Currencies 
653 |a Monetary Systems 
653 |a Financial regulation and supervision 
653 |a Monetary policy 
653 |a Financial Risk and Risk Management 
653 |a Exchange rates 
653 |a Financing Policy 
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520 |a De facto (unofficial) dollarization, defined as the holding by residents of assets and liabilities denominated in a foreign currency, is a policy concern in an increasing number of developing economies. This paper addresses the dollarization debate from this perspective, with the goal of setting the stage for a more detailed and focused discussion of whether de-dollarization should be a policy objective and, if so, how best to pursue this objective. We review existing theories of de facto dollarization and the extent to which they are supported by the available evidence, presents the main strategies for reform, and proposes a list of policy recommendations