Rapidly rising dollarization and numerous related financial crises in recent years have heightened the need for policy … facto financial dollarization under different economic environments and analyzes its interplay with monetary and prudential … policies. In addition to providing a systematic analysis of the existence, stability, and multiplicity of dollarization …

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 …