Drivers of financial de-dollarisation in CCA region.
|Author:||Mgr. Ana Zviadadze|
|Year:||2018 - summer|
|Leaders:|| PhDr. Jaromír Baxa Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||After the dissolution of the Soviet Union, a number of post-soviet countries are facing a high
level of financial dollarisation. This thesis aims to estimate the determinants of both deposit
and loan de-dollarisation using panel vector autoregression model. The study covers five
countries of Caucasus and Central Asia region within the time frame of 2006:1 to 2017:1.
Our findings suggest that deposit de-dollarisation is driven by exchange rate depreciation. On
the other hand, a decrease in deposit dollarisation contributes to loan de-dollarisation. We
also find out that effective policies toward macroeconomic stability with the development of
the financial system can help to a decrease financial dollarisation level.