How to De-Dollarize Financial Systems in the Caucasus and Central Asia?
How to De-Dollarize Financial Systems in the Caucasus and Central Asia?

Author: Mr.Sami Ben Naceur

Publisher: International Monetary Fund

Published: 2015-09-23

Total Pages: 21

ISBN-13: 1513507273

DOWNLOAD EBOOK

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.

How to De-Dollarize Financial Systems in the Caucasus and Central Asia?
How to De-Dollarize Financial Systems in the Caucasus and Central Asia?

Author: Mr.Sami Ben Naceur

Publisher: International Monetary Fund

Published: 2015-09-23

Total Pages: 21

ISBN-13: 1513598341

DOWNLOAD EBOOK

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.

Reducing Dollarization in the Caucasus and Central Asia
Reducing Dollarization in the Caucasus and Central Asia

Author: Mr. Selim Cakir

Publisher: International Monetary Fund

Published: 2022-07-29

Total Pages: 39

ISBN-13:

DOWNLOAD EBOOK

Declining but still high dollarization rates in the Caucasus and Central Asia (CCA) region affect macroeconomic stability, monetary policy transmission, and financial sector development. Although several studies have investigated the dynamics of dollarization in the CCA, the relative roles of macrofinancial policies and financial market development in the de-dollarization process have not yet been assessed empirically. This paper takes stock of de-dollarization efforts and explores the short-term drivers of financial de‐dollarization in the CCA region. It highlights that there remains significant scope to further reduce dollarization through continued progress in strengthening macroeconomic policy frameworks and in developing markets and institutions.

Regional Economic Outlook, Middle East and Central Asia, October 2015
Regional Economic Outlook, Middle East and Central Asia, October 2015

Author: International Monetary Fund. Middle East and Central Asia Dept.

Publisher: International Monetary Fund

Published: 2015-10-21

Total Pages: 128

ISBN-13: 1513521748

DOWNLOAD EBOOK

This issue discusses economic developments in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP), which continue to reflect the diversity of conditions prevailing across the region. Most high-income oil exporters, primarily in the GCC, continue to record steady growth and solid economic and financial fundamentals, albeit with medium-term challenges that need to be addressed. In contrast, other countries—Iraq, Libya, and Syria—are mired in conflicts with not only humanitarian but also economic consequences. And yet other countries, mostly oil importers, are making continued but uneven progress in advancing their economic agendas, often in tandem with political transitions and amidst difficult social conditions. In most of these countries, without extensive economic and structural reforms, economic prospects for the medium term remain insufficient to reduce high unemployment and improve living standards.

Unravelling The Persistence of Dollarization
Unravelling The Persistence of Dollarization

Author: Ia Eradze

Publisher: Taylor & Francis

Published: 2023-06-22

Total Pages: 232

ISBN-13: 1000719030

DOWNLOAD EBOOK

This volume engages with the roots, dimensions, and implications of foreign currency domination in states with a national currency. Referred to as unofficial dollarization in literature, this is a worldwide phenomenon among developing countries and has a long history. This monograph provides a political economic analysis of dollarization in Georgia and is structured around three themes: the genesis of dollarization (1991–2003), the persistence of dollarization (2003–12) and the politicization of dollarization (2012–19). The case of Georgia is especially representative of the post-socialist transition states, but also has wider applicability. A high level of dollarization is a significant barrier to economic growth, macroeconomic and political stability, functional monetary policy, as well as social welfare. The Covid-19 crisis and the increasing debt of developing countries in foreign currency exacerbate dollarization-related vulnerabilities for these economies. This book will be of interest to postgraduate students in global/comparative political economy, development economics or transition economies, researchers in monetary sovereignty, central banking, exchange rate policies, currency hierarchy, money, financialization, and policy makers in dollarized countries and global institutions.

Peru
Peru

Author: International Monetary Fund. Western Hemisphere Dept.

Publisher: International Monetary Fund

Published: 2016-07-15

Total Pages: 64

ISBN-13: 1498368662

DOWNLOAD EBOOK

This Selected Issues paper presents a comparative analysis of the macroeconomic adjustment in Chile, Colombia, and Peru to commodity terms-of-trade shocks. The study is done in two steps: (1) an analysis of the impulse responses of key macroeconomic variables to terms-of-trade shocks and (2) an event study of the adjustment to the recent decline in commodity prices. The experiences of these countries highlight the importance of flexible exchange rates to help with the adjustment to lower commodity prices, and staying vigilant in addressing depreciation pressures on inflation through tightening monetary policies. On the fiscal front, evidence shows that greater fiscal space, like that of Chile and Peru, gives more room for accommodating terms-of-trade shocks.

Building Resilient Banking Sectors in the Caucasus and Central Asia
Building Resilient Banking Sectors in the Caucasus and Central Asia

Author: MissMercedes Vera Martin

Publisher: International Monetary Fund

Published: 2018-07-06

Total Pages: 49

ISBN-13: 148436077X

DOWNLOAD EBOOK

External shocks since 2014—lower oil prices and slower growth in key trading partners—have put financial sectors, mainly banks, in the eight Caucasus and Central Asia (CCA) countries under increased stress. Even before the shocks, CCA banking sectors were not at full strength. Asset quality was generally weak, due in part to shortcomings in regulation, supervision, and governance. The economies were highly dollarized. Business practices were affected by lack of competition and, in most countries, connected lending, which undermined banking sector health. Shortcomings in financial regulation and supervision allowed the unsound banking practices to remain unaddressed. The external shocks exacerbated in these underlying vulnerabilities. Strains in CCA banking sectors intensified as liquidity tightened, asset quality deteriorated, and banks became undercapitalized. These challenges have required public intervention in some cases.

Handbook on Critical Political Economy and Public Policy
Handbook on Critical Political Economy and Public Policy

Author: Christoph Scherrer

Publisher: Edward Elgar Publishing

Published: 2023-01-20

Total Pages: 520

ISBN-13: 1800373783

DOWNLOAD EBOOK

This comprehensive and stimulating Handbook examines the contribution of political economy to public policy. It provides an overview of several strands of critical political economy, supported by case studies from OECD countries, Latin America, South Africa, and South and East Asia.

IMF Research Bulletin, December 2015
IMF Research Bulletin, December 2015

Author: Mr.Rabah Arezki

Publisher: International Monetary Fund

Published: 2016-01-26

Total Pages: 19

ISBN-13: 1498395325

DOWNLOAD EBOOK

The December issue of the Research Bulletin looks at “Seven Questions about Climate Change” (Rabah Arezki and Akito Matsumoto). The Research Summaries review “Winning the Oil Lottery: The Impact of Natural Resource Extraction on Growth” (Tiago Cavalcanti, Daniel Da Mata, and Frederik Toscani) and “Malaysia: Achieving High-Income Status through Resilience and Inclusive Growth” (Alex Mourmouras and Naimh Sheridan). The issue also includes regular updates on new IMF Working Papers, Staff Discussion Notes, IMF books, and the IMF Economic Review.

Finance in Central and Southeastern Europe
Finance in Central and Southeastern Europe

Author: Srećko Goić

Publisher: Springer

Published: 2017-10-31

Total Pages: 182

ISBN-13: 3319646621

DOWNLOAD EBOOK

This book describes specific problems and proposes solutions for different areas of finance in Central and Southeastern European countries. Covering a broad spectrum of topics, from monetary economics and electronic money to capital markets, banking and insurance, it comprises theoretical and empirical contributions by authors from nine countries - Poland, Slovakia, Croatia, Bosnia and Herzegovina, Romania, Bulgaria, Montenegro, Serbia and Greece. Intended for academics as well as policy makers and practitioners it offers new perspectives on Central and Southeastern European finance research.