TY - BOOK ID - 84783289 TI - How to De-Dollarize Financial Systems in the Caucasus and Central Asia? AU - Ben Naceur, Sami. AU - Hosny, Amr. AU - Hadjian, Gregory. PY - 2015 SN - 1513510509 151353744X 1513598341 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Financial institutions KW - Dollarization KW - Monetary policy KW - Foreign exchange rates KW - Financial intermediaries KW - Lending institutions KW - Associations, institutions, etc. KW - Exchange rates KW - Fixed exchange rates KW - Flexible exchange rates KW - Floating exchange rates KW - Fluctuating exchange rates KW - Foreign exchange KW - Rates of exchange KW - Monetary management KW - Economic policy KW - Currency boards KW - Money supply KW - Rates KW - Foreign Exchange KW - Money and Monetary Policy KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Financial Institutions and Services: General KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Development Planning and Policy: Trade Policy KW - Factor Movement KW - Foreign Exchange Policy KW - Monetary economics KW - Currency KW - Currencies KW - Exchange rate policy KW - Money KW - Russian Federation UR - https://www.unicat.be/uniCat?func=search&query=sysid:84783289 AB - Dollarization rates in the Caucasus and Central Asia (CCA) region are among the highest in the world, with adverse consequences for macroeconomic stability, monetary policy transmission, and financial sector development. Using dynamic panel data models, we find that foreign exchange deposits and loans in the CCA are mainly driven by volatile inflation and exchange rates, low financial depth, and asymmetric exchange rate policies biased toward depreciation. Although there is no unique formula for success, empirical studies and cross-country experiences suggest that credible monetary and exchange rate frameworks, low and stable inflation, and deep domestic financial markets are essential ingredients of any de-dollarization strategy. In implementation, policymakers need to consider proper sequencing of policies, effective communication as well as risks from potential financial disintermediation and instability, and/or capital flight. ER -