## Financial De-Dollarization: Is it for Real?

_IMF Working Papers, September 1, 2005_

## Source details

**Canonical URL:** [Financial De-Dollarization: Is it for Real?](https://www.imf.org/en/publications/wp/issues/2016/12/31/financial-de-dollarization-is-it-for-real-18438)

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## Bibliographic details
- Authors: Eduardo Levy Yeyati, Alain Ize
- Published: September 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451862065.001

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### Summary
- De facto (unofficial) dollarization is defined as the holding by residents of assets and liabilities denominated in a foreign currency.
- The paper addresses the dollarization debate from the perspective of de facto dollarization, aiming to set the stage for a more detailed discussion of whether de-dollarization should be a policy objective and, if so, how to pursue it.
- The paper:
  - reviews existing theories of de facto dollarization and the extent to which they are supported by the available evidence,
  - presents the main strategies for reform,
  - proposes a list of policy recommendations.

### Theories and Evidence Reviewed
- The paper reviews existing theories of de facto dollarization (including terminology present in the source such as dollar intermediation, dollarization, dollarization cum fear, dollarization hysteresis, MVP dollarization).
- The extent to which these theories are supported by the available evidence is examined (details of empirical evidence and model results are in the full paper).

### Main Strategies for Reform
- The paper presents the main strategies for reform aimed at financial de-dollarization (strategies are outlined in the full paper).

### Policy Recommendations
- The paper proposes a list of policy recommendations for pursuing de-dollarization as a policy objective (the full list is contained within the Working Paper).

### Subjects and Keywords
- Subject: Credit risk, Currencies, De-dollarization, Dollarization, Exchange rates, Financial regulation and supervision, Foreign exchange, Monetary policy, Money
- Keywords: Credit risk, Currencies, De-dollarization, dollar intermediation, Dollarization, dollarization cum fear, dollarization hysteresis, Exchange rates, monetary management, Monetary policy, MVP dollarization, policy agenda, Prudential policy, WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/financial-de-dollarization-is-it-for-real-18438_