IMF Working Papers

Reducing Dollarization in the Caucasus and Central Asia

By Selim Cakir, Maria Atamanchuk, Mazin Al Riyami, Nia Sharashidze, Nathalie Reyes

July 29, 2022

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Selim Cakir, Maria Atamanchuk, Mazin Al Riyami, Nia Sharashidze, and Nathalie Reyes. Reducing Dollarization in the Caucasus and Central Asia, (USA: International Monetary Fund, 2022) accessed December 1, 2024

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Summary

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.

Subject: Credit, Currencies, De-dollarization, Dollarization, Foreign exchange, Monetary policy, Money

Keywords: Caucasus, CCA., Central Asia, Central Asia and the Caucasus, Credit, Credit dollarization, Currencies, De-dollarization, De-dollarization policy, Deposit dollarization, Dollarization, Dollarization in the CCA region, Dollarization to a shock, Dollarization to issuance, Foreign Currency, Foreign Exchange, FX, Monetary Policy, Rates in the Caucasus and Central Asia, Reserve requirements

Publication Details

  • Pages:

    39

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2022/154

  • Stock No:

    WPIEA2022154

  • ISBN:

    9798400216381

  • ISSN:

    1018-5941