European Parliament Library

Peru :, Drivers of De-dollarization, Mercedes Garcia-Escribano

Abstract
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
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. De-dollarization-Stylized Facts; A. De-dollarization trend by type of credit and deposits; B. Between and within de-dollarization; III. Contributing Factors and Measures; A. Macro pre-conditions-successful implementation of stabilization policies; B. Prudential measures; C. Development of a capital financial market in soles; IV. Understanding De-dollarization; V. Next steps; VI. Conclusion; Appendix. Decomposition of Commercial and Small Business Sector De-dollarization; References; Footnotes
Language
eng
Literary Form
non fiction
Note
"July 2010."
Physical Description
1 online resource (36 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786612846410

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