The main reasons for this are the gradual decline in the level of dollarization
in the country, the stabilization of manat rate since April 2017 and, as a result, the growth of confidence in it, as well as the process of restructuring the International Bank of Azerbaijan, which had a positive impact on the banking sector as a whole, she noted.
It is argued that the monetary system of fixed exchange rates, inflation targeting and capital account liberalisation has institutionalised the subordinate financialisation and dollarization
of the region.
When a country uses the USD to stabilize their economy this is referred to as dollarization
was increasing; in 1998, it increased by 4ppt to 24.
The rating actions reflect the negative impact of the depreciation of the Azerbaijani manat on the banks' asset quality, profitability and funding after the introduction in December 2015 of a free-floating exchange rate regime, as well as heightened dollarization
of the banks' funding profiles.
The Finance Minister reiterated that the dollarization
of the economy will not be allowed and SBP, in its role of regulator, will take all necessary measures to curb such activities.
11--even before a dollarization
law had been enacted--the central bank lowered the rediscount rate from 200% a year to 20%, but this newfound ray of hope was threatening to some and, during a 24-hour period (Jan.
Recently Banco Central de Reserva del Peru (BCRP) Peru's central bank approved several measures to foster the reduction on the dollarization
levels by lowering cash reserve requirements for deposits in local currency while increasing those for dollar deposits.
ratio of total non-bank deposits constituted 60.
The study makes recommendations on areas such as boosting medium and long-term growth prospects, reduction of debt levels, dollarization
as an alternative framework for monetary policy, and evaluation of compliance with international best practices in bank supervision.
of cleared checks reported a slight increase from 79.
This issue is not new; in the last decade a few Latin American countries, the most dollarized region in the world, began introducing measures to create incentives to internalize the risks of dollarization
, the development of capital markets in local currencies, and de-dollarization
of deposits, which all contribute to a decline in credit dollarization
globally, but predominantly in Latin America and the BRIC (Brazil, Russia, India and China) countries.