## Financial Dollarization: The Policy Agenda

_Books, July 25, 2006_

## Source details

**Canonical URL:** [Financial Dollarization: The Policy Agenda](https://www.imf.org/en/publications/books/issues/2016/12/31/financial-dollarization-the-policy-agenda-18710)

## Other formats

- [Markdown version](/en/publications/books/issues/2016/12/31/financial-dollarization-the-policy-agenda-18710/index.md)
- [Structured JSON version](/en/publications/books/issues/2016/12/31/financial-dollarization-the-policy-agenda-18710/index.json)
- [Bundle manifest](/en/publications/books/issues/2016/12/31/financial-dollarization-the-policy-agenda-18710/bundle-manifest.json)

## Bibliographic details
- Authors: Adrián Armas, Eduardo Levy Yeyati, Alain Ize
- Published: July 25, 2006
- Series: Books
- DOI: https://doi.org/10.5089/9781403987594.071

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### Summary
- Financial (unofficial) dollarization is identified as a critical source of financial fragility in both developing and emerging economies.
- The volume provides a rigorous and balanced perspective on:
  - the causes and implications of dollarization;
  - the basic policies and options to address dollarization, including the adaptation of monetary and prudential frameworks, the development of local-currency substitutes, and administrative restrictions to limit dollarization.
- For purchasing information: http://www.palgrave.com/economics/imf/index.asp.

### Key findings and themes
- Causes and implications of dollarization are analyzed to inform policy responses.
- Policy options assessed include:
  - adaptation of the monetary framework;
  - adaptation of the prudential framework;
  - development of local-currency substitutes to reduce reliance on foreign currency;
  - consideration of administrative restrictions to limit dollarization.

### Policy recommendations and options (as presented)
- Adapt monetary frameworks to mitigate dollarization-driven vulnerabilities.
- Adapt prudential frameworks to account for currency mismatches and exposure.
- Promote development of local-currency substitutes to deepen domestic currency use.
- Evaluate scope and implications of administrative restrictions aimed at limiting dollarization.

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_Source: https://www.imf.org/en/publications/books/issues/2016/12/31/financial-dollarization-the-policy-agenda-18710_