Impact of Remittances on Natural Rate of Dollarization-Trends in Caucasus and Central Asia

Reducing Dollarization in the Caucasus and Central Asia

“…Gondo et al (2020) estimated a natural level of dollarization in the CCA, following the model in(Ize and Levy Yeyati, 2003). They define a dollarization benchmark level for deposits that depend on the relative volatility of the real ExR and inflation.…”