Financial de-dollarization: a global perspective and the Peruvian experience (Capítulo) 

• Autores: Catão, Luis, Terrones, Marco
• Formato: capítulo de libro
• Fecha de Publicación: 2016
• Institución: Universidad del Pacífico
• Repositorio: UP-Institucional
• Lenguaje: inglés
• OAI Identifier: oai:repositorio.up.edu.pe:11354/3194
• Enlace del recurso: https://hdl.handle.net/11354/3194
• Nivel de acceso: acceso abierto
• Materia: Dolarización--Perú; Política monetaria--Perú; https://purl.org/pe-repo/ocde/ford#5.02.01

We reappraise the cross-country evidence on the dollarization of domestic financial systems in emerging market economies. Amidst some striking heterogeneity of patterns across emerging regions, we identify a broad global trend towards financial sector de-dollarization from the early 2000s to the eve of the global financial crisis of 2008-09. Since then, de-dollarization has either broadly stalled or even been reversed in many economies, but a few have continued to de-dollarize through this date, suggesting that the inter-play of global and domestic factors is key. To gain further insight into such inter-play, we examine the experience of Peru since the early1990s and find that a number of global factors including low global interest rates, low global risk-aversion, and high commodity prices have aided financial de-dollarization. Domestic factors that raise the relative cost of dollar lending, such as the introduction of macro-prudential measures, also aid financial de-dollarization. The introduction and adherence to inflation targeting seem, however, to be key.