Analyzing new data, the authors find that the general trend toward increased use of foreign-currency-denominated bank deposits in emerging markets has continued, despite declines in a few countries. Their analysis of the new data suggests that a sizable fraction (about half, on average) of funds...

An increasing share of bank deposits in developing countries is denominated in foreign currency. This trend may have adverse implications for the cost and availability of credit.Analyzing new data, Honohan and Shi find that the general trend toward increased use of foreign-currency-denominated...