|
|
Showing 1 - 1 of
1 matches in All Departments
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.
|
|
Email address subscribed successfully.
A activation email has been sent to you.
Please click the link in that email to activate your subscription.