Defining financial dollarization: approaches to assessment and categorization
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Date
2023
Authors
Slaviuk, Nataliia
Journal Title
Journal ISSN
Volume Title
Publisher
Kyiv-Mohyla Academy Publishing House
Abstract
Financial dollarization is a phenomenon in which a foreign currency, most often the US dollar, is used for financial transactions and is held as a store of value in place of the national currency. It can be present in various forms, including deposit dollarization (DD), loan dollarization (LD), and portfolio dollarization. The measurement and classification of financial dollarization have been an ongoing topic of interest for economists and policymakers, as high levels of dollarization can negatively affect the financial system's stability and the monetary policy's effectiveness. Various methods of assessing the degree of financial dollarization include ratio analysis, regression analysis, and portfolio optimization models. Additionally, financial dollarization can be classified based on its source, such as natural or induced dollarization, as well as its duration, whether it is short-term or long-term.
Description
Keywords
financial dollarization, financial transactions, financial system's, monetary policy's, currency deposits, monograph section
Citation
Slaviuk N. Defining financial dollarization: approaches to assessment and categorization / [Slaviuk Nataliia] // Financial Policy of Ukraine for the Maintenance of Macroeconomic Stability : the collective monograph / [Lukianenko I., Galytska E., Primierova O. et al. ; general editor Lukianenko I.] ; National University of Kyiv-Mohyla Academy. - Kyiv : Kyiv-Mohyla Academy Publishing House, 2023. - Chapter 4.1. - Р. 140-147.