Dollarization In Sub Saharan Africa

Author : Mr.Mauro Mecagni,Mr.Juan S Corrales,Mr.Jemma Dridi,Mr.Rodrigo Garcia-Verdu,Patrick A. Imam,Mr.Justin Matz,Ms.Carla Macario,Mr.Rodolfo Maino,Mr.Yibin Mu,Ashwin Moheeput,Mr.Futoshi Narita,Mr.Marco Pani,Mr.Manuel Rosales Torres,Mr.Sebastian Weber,Mr.Etienne B Yehoue
Publisher : International Monetary Fund
Page : 75 pages
File Size : 48,5 Mb
Release : 2015-05-15
Category : Business & Economics
ISBN : 9781498368476

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Dollarization in Sub-Saharan Africa by Mr.Mauro Mecagni,Mr.Juan S Corrales,Mr.Jemma Dridi,Mr.Rodrigo Garcia-Verdu,Patrick A. Imam,Mr.Justin Matz,Ms.Carla Macario,Mr.Rodolfo Maino,Mr.Yibin Mu,Ashwin Moheeput,Mr.Futoshi Narita,Mr.Marco Pani,Mr.Manuel Rosales Torres,Mr.Sebastian Weber,Mr.Etienne B Yehoue Pdf

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.

Author : Anonim
Publisher : Unknown
Page : 128 pages
File Size : 47,7 Mb
Release : 2015
Category : Electronic
ISBN : 1513516930

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Dollarization in Sub-Saharan Africa:Experiences and Lessons by Anonim Pdf

Author : Mauro Mecagni
Publisher : Unknown
Page : 75 pages
File Size : 48,8 Mb
Release : 2016-03
Category : Electronic
ISBN : 1513523198

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Dollarization in Sub-Saharan Africa by Mauro Mecagni Pdf

Author : Mr.Juan S Corrales,Patrick A. Imam
Publisher : International Monetary Fund
Page : 45 pages
File Size : 46,7 Mb
Release : 2019-01-22
Category : Business & Economics
ISBN : 9781484393192

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Financial Dollarization of Households and Firms: Does It Differ? by Mr.Juan S Corrales,Patrick A. Imam Pdf

Using a newly complied and extended database from International Financial Statistics, and applying different panel-regression techniques, this paper documents the evolution of households’ and firms’ dollarization over the past decade. We assess the macroeconomic determinants of dollarization for households and firms and explore differences between high and low-income countries. We find that households’ and firms’ dollarization in loans and deposits are weakly explained by the currency substitution model, except in low income countries, where inflation plays a significant role. Instead, market development variables such as financial deepening, access to external debt and FX finance as well as other market considerations are key to explain the dynamics of deposits and loans dollarization, regardless of the level of income.These factors can account for a significant fraction of the dollarization, but using a variance decomposition model, there is evidence that a non-negligible portion has yet to be explained. This suggests that there are key determinants for household and firm dollarization that are not fully captured by traditional macroeconomic explanatory variables.

Author : Mr.Nils Øyvind Mæhle,Ms.Haimanot Teferra,Mrs.Armine Khachatryan
Publisher : International Monetary Fund
Page : 71 pages
File Size : 51,8 Mb
Release : 2013-01-31
Category : Business & Economics
ISBN : 9781557756695

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Exchange Rate Liberalization in Selected Sub-Saharan African Countries Successes, Failures, and Lessons by Mr.Nils Øyvind Mæhle,Ms.Haimanot Teferra,Mrs.Armine Khachatryan Pdf

Many sub-Saharan African (SSA) countries liberalized their economies in the 1980s and early 1990s. This paper reviews the foreign exchange regime reforms in selected SSA, and their associated macroeconomic policies and economic performance during and after these reforms were undertaken. Before liberalization, most of the reviewed countries were characterized by extensive foreign exchange rationing, sizeable black market premiums, and declining per capita real income. Today, the countries that successfully reformed look markedly different. Rationing and parallel market spreads are a distant memory, and per capita income has increased sharply.

Author : Mr. Mauro Mecagni,Daniela Marchettini,Mr. Rodolfo Maino
Publisher : International Monetary Fund
Page : 39 pages
File Size : 44,5 Mb
Release : 2015-09-16
Category : Business & Economics
ISBN : 9781513501758

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Evolving Banking Trends in Sub-Saharan Africa by Mr. Mauro Mecagni,Daniela Marchettini,Mr. Rodolfo Maino Pdf

Banking in SSA has undergone very significant changes over the last two decades. Financial liberalization and related reforms, upgrades in institutional and more recently the expansion of cross-border banking activities and the rapid development of Pan-African banking groups are signaling greater financial integration and significant changes in the African banking and financial landscape. Nonetheless, excess liquidity in many countries reflects limited lending opportunities and, despite improvements, asset quality and provisioning remain comparatively low. Dollarization has also been a persistent characteristic in several natural resource-dependent economies. This paper discusses key stylized facts and trends of banking development in SSA, looking at a variety of dimensions such as size, depth, soundness, and efficiency. It also assess the rapid expansion of pan-African banking groups, which have overtaken the role of the European and U.S. banks that had traditionally dominated banking activities in SSA, creating significant cross-border networks and becoming the largest participants in new syndicates and large bilateral loans to finance infrastructure development.

Author : International Monetary Fund. African Dept.
Publisher : International Monetary Fund
Page : 129 pages
File Size : 52,9 Mb
Release : 2017-11-27
Category : Business & Economics
ISBN : 9781484320976

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Regional Economic Outlook, October 2017, Sub-Saharan Africa by International Monetary Fund. African Dept. Pdf

Growth in sub-Saharan Africa has recovered relative to 2016, but the momentum is weak and per capita incomes are expected to barely increase. Further, vulnerabilities have risen in many countries, adding to the urgency of implementing the fiscal consolidations planned in most countries and with stepped up efforts to strengthen growth.

Author : International Monetary Fund. African Dept.
Publisher : International Monetary Fund
Page : 140 pages
File Size : 47,9 Mb
Release : 2016-10-25
Category : Business & Economics
ISBN : 9781513595979

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Regional Economic Outlook, October 2016, Sub-Saharan Africa by International Monetary Fund. African Dept. Pdf

Economic growth in sub-Saharan Africa this year is set to drop to its lowest level in more than 20 years, reflecting the adverse external environment, and a lackluster policy response in many countries. However, the aggregate picture is one of multispeed growth: while most of non-resource-intensive countries—half of the countries in the region—continue to perform well, as they benefit from lower oil prices, an improved business environment, and continued strong infrastructure investment, most commodity exporters are under severe economic strains. This is particularly the case for oil exporters whose near-term prospects have worsened significantly in recent months. Sub-Saharan Africa remains a region of immense economic potential, but policy adjustment in the hardest-hit countries needs to be enacted promptly to allow for a growth rebound.

Author : International Monetary Fund. African Dept.
Publisher : International Monetary Fund
Page : 137 pages
File Size : 50,9 Mb
Release : 2016-05-03
Category : Business & Economics
ISBN : 9781484309612

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Regional Economic Outlook, April 2016, Sub-Saharan Africa by International Monetary Fund. African Dept. Pdf

Economic growth in sub-Saharan Africa as a whole has fallen to its lowest level in 15 years, though with large variation among countries in the region. The sharp decline in commodity prices has severely strained many of the largest economies, including oil exporters Angola and Nigeria, and other commodity exporters, such as Ghana, South Africa, and Zambia. At the same time, the decline in oil prices has helped other countries continue to show robust growth, including Kenya and Senegal. A strong policy response to the terms-of-trade shocks is critical and urgent in many countries. This report also examines sub-Saharan Africa’s vulnerability to commodity price shocks, and documents the substantial progress made in financial develop, especially financial services based on mobile technologies.

Author : Hidenobu Okuda,Serey Chea
Publisher : Taylor & Francis
Page : 228 pages
File Size : 46,5 Mb
Release : 2023-09-07
Category : Business & Economics
ISBN : 9781000955576

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Cambodian Dollarization by Hidenobu Okuda,Serey Chea Pdf

This book is the first study to provide a comprehensive picture of the reality and structure of dollarization in Cambodia, which has been achieving rapid economic and financial development since the end of 1998, when full piece reigned over the kingdom. It uses the micro-level data collected through nationwide surveys conducted jointly by the National Bank of Cambodia and JICA Ogata Sadako Research Institute in 2014 and 2017. By applying econometric analysis to collected data, the book analyses in detail the structures and mechanisms of dollarization in households, companies, and financial institutions. It also provides detailed information on the historical development of Cambodian dollarization, international comparisons with various cases of dollarization in countries around the world, and the impact of NBC's digital payment platforms (particularly Bakong) on the use of local and foeign currencies. The Cambodian case shows that financial development of low- and middle-income countries is promoted mutually by dollarization and that policies to separate the two are necessary to curb dollarization. This book will be of interest to students, researchers and policy-makers concerned with dollarization and economics in Southeast Asia.

Author : International Monetary Fund. African Dept.
Publisher : International Monetary Fund
Page : 136 pages
File Size : 54,6 Mb
Release : 2022-07-05
Category : Business & Economics
ISBN : 9798400214233

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Democratic Republic of the Congo by International Monetary Fund. African Dept. Pdf

Considerable macroeconomic gains were achieved in 2021: the economic rebound was stronger than envisaged, driven by the non-extractive sector; CPI inflation declined to 5.3 percent year-on-year, accompanied by a stable exchange rate as the central bank stopped providing financing to the government; and an improved external position supported reserves accumulation. The 2021 fiscal outturn was also better-than-projected although domestic arrears accumulated. Despite excess liquidity, the banking sector faces vulnerabilities. The war in Ukraine is pushing up the cost of living and rising the fiscal costs associated with the fuel subsidy. Despite this and deteriorating global economic prospects, the outlook remains favorable and provides opportunities to consolidate macro stability and scale up structural reforms, though significant downside risks remain, and severe fragility persists.

Author : MissNkunde Mwase,Mr.Francis Y Kumah
Publisher : International Monetary Fund
Page : 31 pages
File Size : 47,9 Mb
Release : 2015-01-22
Category : Business & Economics
ISBN : 9781484366912

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Revisiting the Concept of Dollarization by MissNkunde Mwase,Mr.Francis Y Kumah Pdf

The economic literature has examined deposit dollarization in nominal terms, typically focusing on the ratio of foreign currency deposits to broad money. However, while private agent demand for foreign currency may remain unchanged in foreign currency terms, there could be large fluctuations in the dollarization ratio simply due to exchange rate movements. This paper proposes a new approach to measuring dollarization that removes these exchange rate effects, and demonstrates that beyond the variance of inflation and depreciation, the level of inflation and size of depreciation also matter for dollarization. While dollarization in nominal terms surged during the recent global financial crisis, there was a downward trend in real terms. Employing a set of econometric estimators, this paper investigates whether “real” dollarization during 2006–09 was associated with the crisis, and the role of initial macroeconomic conditions, quality of institutions, risk aversion, and prudential measures. We find that exchange rate appreciation and reductions in sovereign risk do moderate dollarization; but the results for global volatility have low statistical significance, perhaps because global shocks tend to preserve, to a large extent, relative attractiveness of foreign assets. Nonetheless, estimated impulse-response functions point to a large but short-lived positive impact of global volatility on dollarization, which could reflect economic agents heightened concerns about spillover effects of global uncertainty on the domestic economy.

Author : Emre Ozsoz,Erick W. Rengifo
Publisher : Walter de Gruyter GmbH & Co KG
Page : 139 pages
File Size : 51,6 Mb
Release : 2016-05-24
Category : Business & Economics
ISBN : 9783110437027

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Understanding Dollarization by Emre Ozsoz,Erick W. Rengifo Pdf

A very commonly observed phenomenon in developing and emerging market economies is the use of another country’s currency (whether the US dollar or another currency) in lieu or in addition to the local currency. The most common type of this financial phenomenon is partial (de facto) dollarization where foreign currencies are used side by side with local currency for saving and borrowing purposes in addition to serving as medium of exchange. Governments in these countries have been encouraging dollarization for years by allowing their citizens to save and borrow from local banks in foreign currency. Yet the existence of multiple currencies on banks' balance sheets on both the asset and liability side poses risks to the health and stability of the banking system. This book evaluates the practical aspects of partial dollarization in countries such as Turkey, South Korea, Peru, and Cambodia among others. Starting with the origins of the phenomenon, the impact on banking systems and financial depth of the credit markets are discussed along with risks to the banking systems. Challenges faced by Central Banks and banking regulators are evaluated using recent country studies.

Author : Ms.Nombulelo Duma
Publisher : International Monetary Fund
Page : 27 pages
File Size : 47,6 Mb
Release : 2011-03-01
Category : Business & Economics
ISBN : 9781455218936

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Dollarization in Cambodia by Ms.Nombulelo Duma Pdf

Over the past decade, Cambodia has become Asia’s most dollarized economy. In contrast, dollarization in neighboring Lao P.D.R., Mongolia, and Vietnam has been either declining or broadly stable. Somewhat paradoxically, growing dollarization in Cambodia has occurred against the backdrop of greater macroeconomic and political stability. The usual motive, currency substitution, does not appear to have been a factor. As the volume of dollars increased over the years, so has the volume of riel. A strong inward flow of dollars related to garments sector exports, tourism receipts, foreign direct investment, and aid, has benefitted the dollar based urban economy. The riel based rural economy has, however, lagged behind. Given international experience in de-dollarization, a carefully managed market based strategy, supported by a continued stable macroeconomic environment is essential for Cambodia’s de-dollarization.

Author : Ünal Çağlar ,Hamza Şimşek,İsmail Şiriner
Publisher : IJOPEC PUBLICATION
Page : 199 pages
File Size : 41,7 Mb
Release : 2019-10-01
Category : Business & Economics
ISBN : 9781912503759

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Curent Debates in Economic Growth & Public Finance & Game Theory by Ünal Çağlar ,Hamza Şimşek,İsmail Şiriner Pdf

Economic activities have gained a global structure with the increasing importance and the progress of information technologies. Business has spread its activities through information technologies and have used information and information technologies as a strategic force in their competitive efforts. The use of financial resources, which gained importance during the industrial revolution, now has been replaced by the information economy. Knowledge has become an opportunity cost of financial capital. Production, consumption, distribution relations and economic structure, which are considered as the basic elements of the economy, have been restructured on the basis of knowledge. This book reflects the diversity of social science debates and includes three titles; economic growth and globalization; economic and game theory; and public finance. There are various scientific studies under the title of economic growth and globalization. We hope that our readers will enjoy and benefit from these contributions.