Given recent improvements in macroeconomic fundamentals, why has dollarisation
been persistent and not declined?
He advised new CBE governor Tarek Amer to increase interest rates to curb the dollarisation
issue, and to meet with exchange companies "and treat them as partners".
With headline CPI falling into deflation in February and March, and concerns over deposit dollarisation
easing, the central bank may have room to ease policy further in 2015.
Moody's says that banks' funding options will be challenged by the increased dollarisation
of the banking system, as the proportion of customer deposits that are denominated in foreign currency (mostly dollars) has grown to 55% from 37% since the beginning of last year.
impacted by foreign exchange losses due to de- dollarisation
He added : "The thrust on CSC is that over the years we have seen the proliferation of private abattoirs coming to compete with the CSC and since the dollarisation
of the economy we have seen that the CSC like the (Grain Marketing Board) GMB has been facing challenges in terms of raising funding for them to be able to buy animals especially for slaughter and we will also see utilisation of the abattoirs which are under the CSC.
As you know, official dollarisation
requires an agreement with the owners of that currency.
Potential funding weaknesses for Lebanese banks include the predominance of short-term maturities and a high degree of dollarisation
at 66 per cent of deposits as of year-end 2013.
On the asset side, we are wary of credit dollarisation
, with the share of foreign-currency denominated credit to the public sector reaching around 50% in October 2013, albeit down from 80% in January 2013.
I was talking about these concerns around the foreign exchange market and the dollarisation
of the economy and the high level of imports in MPC press conferences, and said we're looking at these things.
S nexus and has to come out of the Punjabi Chauvinism and marshes of dollarisation
Anwar firmly rejected the notion that there has been any dollarisation
or capital flight from the country.