Occasional Papers

Economic Policy in a Highly Dollarized Economy: The Case of Cambodia

Publication Date:

September 30, 2003

Electronic Access:

Link to Abstract

Summary:

This study examines the challenges and issues facing policymakers in highly dollarized economies. Focusing on Cambodia, which achieved almost complete dollarization during 1991-95, the authors review recent developments in the literature on dollarization and examine the costs and benefits of dollarization in Cambodia, including the ensuing macroeconomic policy implications. They carry out an econometric estimation of cash foreign currency circulation in Cambodia in order to gauge the degree of dollarization. In addition to this analysis, the authors present a short description of Cambodia’s economic, financial, and structural background.

Series:

Occasional Paper No. 2003/008

Subject:

Bank deposits Banking Commercial banks Currencies Currency boards Dollarization Financial institutions Financial services Foreign exchange Monetary policy Money