Depositing Credibility: Institutions, Government Credibility and Foreign Currency Deposits - PowerPoint PPT Presentation


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Trends in FC Deposit Regulations. The Puzzle. Unofficial dollarization is prevalent in many developing countries, yet official dollarization is rare. Given this apparent unwillingness to sacrifice sovereignty, why have countries converged on the potentially costly policy of allowing their residents to open and maintain unrestricted foreign currency deposit accounts?.

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