TY - BOOK ID - 84658353 TI - Peru : drivers of de-dollarization PY - 2010 SN - 1462349684 1455207160 1282846418 9786612846410 1455201804 PB - [Washington, D.C.] : International Monetary Fund, DB - UniCat KW - Dollarization KW - Monetary policy KW - Monetary management KW - Economic policy KW - Currency boards KW - Money supply KW - Banks and Banking KW - Money and Monetary Policy KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Monetary economics KW - Banking KW - Credit KW - De-dollarization KW - Currencies KW - Money KW - Banks and banking KW - Peru UR - https://www.unicat.be/uniCat?func=search&query=sysid:84658353 AB - Peru has successfully pursued a market-driven financial de-dollarization during the last decade. Dollarization of credit and deposit of commercial banks - across all sectors and maturities - has declined, with larger declines for commercial credit and time and saving deposits. The analysis presented in this paper confirms that de-dollarization has been driven by macroeconomic stability, introduction of prudential policies to better reflect currency risk (such as the management of reserve requirements), and the development of the capital market in soles. Further de-dollarization efforts could focus on these three fronts. Given the now consolidated macroeconomic stability, greater exchange rate flexibility could foster de-dollarization; additional prudential measures could further discourage banks’ lending and funding in foreign currency; while further capital market development in domestic currency would help overall financial de-dollarization. ER -