Dollarization, which can be considered as a wide-spread characteristic of the emerging market economies, is caused by economic units’ holding assets in foreign currency to prevent the value of their financial assets from the risk of devaluation of the national currency and to diversify their...

Logit model and the signal approach are two analysis methods being commonly used to forecast and explain currency crises. Logit model is successful to determine explaining variables of crisis and to calculate the probability of crisis in particular during the period experienced with a crisis. On...