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Bannister, Geoffrey J. - 2018

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,...

Persistent link: https://www.econbiz.de/10012909419

The Pros and Cons of Full Dollarization

Borensztein, Eduardo - 2021

We analyze the costs and benefits of full dollarization compared to its closest alternative, a currency board, quantifying for Argentina where possible. Potential advantages include lower borrowing costs and deeper integration into world markets. One cost is the transfer of seigniorage to the...

Persistent link: https://www.econbiz.de/10013212036

Global Banks' Dollar Funding : A Source of Financial Vulnerability

Barajas, Adolfo - 2020

Leading up to the global financial crisis, US dollar activity by global banks headquartered outside the United States played a crucial role in transmitting shocks originating in funding markets. Although post-crisis regulation has improved banking systems' resilience, US dollar funding remains a...

Persistent link: https://www.econbiz.de/10012827587

The Non-U.S. Bank Demand for U.S. Dollar Assets

Adrian, Tobias - 2020

The USD asset share of non-U.S. banks captures the demand for dollars by these investors. An instrumental variable strategy identifies a causal link from the USD asset share to the USD exchange rate. Cross-sectional asset pricing tests show that the USD asset share is a highly significant...

Persistent link: https://www.econbiz.de/10012828241

Reducing Dollarization in the Caucasus and Central Asia

Cakir, Selim; Atamanchuk, Maria; AL-Riyami, Mazin; … - 2022

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...

Persistent link: https://www.econbiz.de/10014079015

U.S. Dollar Currency Premium in Corporate Bonds

Caramichael, John; Gopinath, Gita; Liao, Gordon - 2022

We isolate a U.S. dollar currency premium by comparing corporate bonds issued in the dollar and the euro by firms o utside t he U .S. a nd e uro a rea. We make s everal empirical observations that dissect the perceived advantage of borrowing in the dollar. First, while the dollar dominates...

Persistent link: https://www.econbiz.de/10013306776

Central Banks as Dollar Lenders of Last Resort : Implications for Regulation and Reserve Holdings

Das, Mitali; Gopinath, Gita; Kim, Taehoon; Stein, Jeremy C. - 2023

This paper explores how non-U.S. central banks behave when firms in their economies engage in currency mismatch, borrowing more heavily in dollars than justified by their operating exposures. We begin by documenting that, in a panel of 53 countries, central bank holdings of dollar reserves are...

Persistent link: https://www.econbiz.de/10014257932

Financial De-Dollarization : A Global Perspective and the Peruvian Experience

Catão, Luis - 2016

of Peru since the early 1990s and find that low global interest rates, low global risk-aversion, and high commodity …

Persistent link: https://www.econbiz.de/10012977738

Measuring External Risks for Peru : Insights from a Macroeconomic Model for a Small Open and Partially Dollarized Economy

Han, Fei - 2015

This paper quantifies the effects of external risks for Peru, with particular attention to two major external risks … and partially dollarized economy is developed and estimated for Peru to measure the risk spillovers, and simulate domestic … macroeconomic responses in different scenarios with these two external risks. The simulation results suggest that Peru's output is …

Persistent link: https://www.econbiz.de/10013021789

Exchange Rate Regimes in Central, Eastern and Southeastern Europe : A Euro Bloc and a Dollar Bloc?

Slavov, Slavi - 2017

There are 13 countries in Central, Eastern and Southeastern Europe (CESEE) with floating exchange rate regimes, de jure. This paper uses the framework pioneered by Frankel and Wei (1994) and extended in Frankel and Wei (2008) to show that most of them have been tracking either the euro or the US...

Persistent link: https://www.econbiz.de/10012956475