Dollarization in Sub-Saharan Africa : Experiences and Lessons /

Dollarization-the use of foreign currencies as a medium of exchange, store of value, or unit of account-is a notable feature of financial development under macroeconomically fragile conditions. It has emerged as a key factor explaining vulnerabilities and currency crises, which have long been observ...

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Bibliographic Details
Main Author: Mecagni, Mauro
Other Authors: Corrales, Juan, Dridi, Jemma, Garcia-Verdu, Rodrigo
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2015.
Series:Departmental Papers; Departmental Paper ; No. 2015/005
Online Access:Full text available on IMF
Description
Summary:Dollarization-the use of foreign currencies as a medium of exchange, store of value, or unit of account-is a notable feature of financial development under macroeconomically fragile conditions. It has emerged as a key factor explaining vulnerabilities and currency crises, which have long been observed in Latin America, parts of Asia, and Eastern Europe. Dollarization is also present, prominently, in sub-Saharan Africa (SSA) where it remains significant and persistent at over 30 percent rates for both bank loans and deposits-although it has not increased significantly since 2001. However, progress in reducing dollarization has lagged behind other regions and, in this regard, it is legitimate to ask whether this phenomenon is an important concern in SSA. This study fills a gap in the literature by analyzing these issues with specific reference to the SSA region on the basis of the evidence for the past decade.
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Physical Description:1 online resource (75 pages)
Format:Mode of access: Internet
ISSN:2616-5333
Access:Electronic access restricted to authorized BRAC University faculty, staff and students