This paper examines El Salvador’s transition to official dollarization by comparing aspects of this regime to the fixed … framework, and it is found that dollarization lowered rates by 4 to 5 percent by reducing currency risk. This has generated net ….S. Federal Reserve policy since dollarization, implying that this policy has served to stabilize economic activity more than it …

in two highly dollarized economies (Peru and Bolivia) vis-à-vis two economies with low levels of dollarization (Chile and … instruments to hedge exchange rate risks, together with fear of floating and dollarization, have been stressed as factors that … Colombia), we found that, while dollarization imposes differences in both the transmission capacity of monetary policy and its …

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 …

This paper tests several explanations for financial dollarization (FD), with an emphasis on Latin America. The results …

(Argentina, Bolivia, Mexico, Peru and Uruguay) during 1970-1993. It presents evidence on the relative size of dollarization, the …This paper examines the pattern of dollarization in Latin America, focusing on the experience of five countries … factors, macroeconomic conditions, and the dynamics of money demand In shaping the dollarization process; it also highlights …

Peru has successfully pursued a market-driven financial de-dollarization during the last decade. Dollarization of … commercial credit and time and saving deposits. The analysis presented in this paper confirms that de-dollarization has been … management of reserve requirements), and the development of the capital market in soles. Further de-dollarization efforts could …