## How Has Dollarization Served Timor-Leste So Far?

_Selected Issues Papers, December 20, 2024_

## Source details

**Canonical URL:** [How Has Dollarization Served Timor-Leste So Far?](https://www.imf.org/en/publications/selected-issues-papers/issues/2024/12/20/how-has-dollarization-served-timor-leste-so-far-559795)

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## Bibliographic details
- Authors: Raju Huidrom, Danila Smirnov
- Published: December 20, 2024
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400295836.018

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### Analysis dimensions examined
- Growth and inflation performance
- Business and financial cycle synchronization
- Adjustment to external shocks
- Competitiveness

### Key findings
- Dollarization has helped Timor-Leste achieve relatively low and stable inflation in the context of post conflict fragility.
- Dollarization may be contributing to weakening competitiveness.
- Improved performance under dollarization requires reduced fiscal imbalances.
- Structural bottlenecks that undermine competitiveness must be addressed to advance performance under dollarization.

### Subject areas and keywords covered
- Business cycles, Dollarization, Economic growth, Expenditure, Foreign exchange, Inflation, Monetary policy, Prices, Real effective exchange rates
- Asia-Pacific department, business cycles, competitiveness, Dollarization, Global, I. data description, Inflation, inflation performance, Real effective exchange rates, structure under dollarization, weakening competitiveness

### Publication identifiers (as presented on the page)
- Pages: 18
- Volume: 2024
- Issue: 042
- Series: Selected Issues Paper No. 2024/042
- DOI: https://doi.org/10.5089/9798400295836.018
- ISBN: 9798400295836
- ISSN: 2958-7875

*Source: "How Has Dollarization Served Timor-Leste So Far?", Selected Issues Papers, by Raju Huidrom and Danila Smirnov, December 20, 2024.*

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2024/12/20/how-has-dollarization-served-timor-leste-so-far-559795_