Front Matter

Front Matter

Anne Gulde, David Hoelscher, Alain Ize, Dewitt Marston, and Gianni De Nicolo
Published Date:
June 2004
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Financial Stability in Dollarized Economies

Anne-Marie Gulde, David Hoelscher,

Alain Ize, David Marston, and Gianni De Nicolo


Washington DC


© 2004 International Monetary Fund

Production: IMF Multimedia Services Division

Cataloging-in-Publication Data

Financial stability in dollarized economies / Anne-Marie Gulde … [et al.] — Washington, D.C.: International Monetary Fund, 2004.

p. cm. — (Occasional paper; 230)

Includes bibliographical references.

ISBN 1-58906-296-5

1. Dollar, American. 2. Banks and banking. 3. Monetary policy. I. Gulde, Anne-Marie. II. Occasional paper (International Monetary Fund); no. 230

HG230.3.F35 2004

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The following symbols have been used throughout this paper:

  • … to indicate that data are not available;
  • — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
  • – between years or months (e.g., 1998–99 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
  • / between years (e.g., 1998/99) to indicate a fiscal (financial) year.

“Billion” means a thousand million.

Minor discrepancies between constituent figures and totals are due to rounding.

The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.


This Occasional Paper addresses the challenges to prudential supervision in highly dollarized economies where central banks and supervisors may be constrained in the use of standard monetary and financial policy tools. Based on a 2003 IMF Executive Board Paper, Financial Stability in Dollarized Economies is part of the policy development work conducted by the IMF’s Monetary and Financial Systems Department. Its conclusions are the basis of an ongoing policy dialogue with member countries, standard-setters in the financial area, and academia.

The paper is the result of a group effort. It was prepared by Anne-Marie Gulde, David Hoelscher, Alain Ize, David Marston, and Gianni De Nicoló, with important contributions from Socorro Heysen, R. Armando Morales, and Marina Moretti. The authors thank all contributors, internal reviewers, and the various country authorities who responded to a survey on prudential practices. They are also grateful to Kalin Tintchev for providing excellent research assistance, Tsegereda Mulatu for expertly coordinating the preparation of the manuscript, and Archana Kumar of IMF’s External Relations Department for editing the paper and coordinating its publication.

The opinions expressed in the paper are those of the authors and do not necessarily reflect the views of the national authorities, the IMF, or IMF Executive Directors.

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