AFTER THE GLOBAL FINANCIAL CRISIS, THE DOLLARIZATION PROCESS IN EMERGING COUNTRIES

Abstract

In this study, the answers are searched for the questions of how the dollarization trend has changed after the Global Financial Crisis and whether the ""dollarization"" or ""de-dollarization"" process has been experienced in emerging countries by using the composite dollarization index. According to the results, the dollarization trend once again dominates these economies after the crisis; especially after 2013, there is an increased pressure on the emerging countries towards dollarization. In this process, where assets are mainly held in foreign currency and external debt problems are increasing, it is seen that foreign currencies in emerging countries are preferred over the local currency. In terms of liability dollarization the most pressure is found in Turkey, whereas the acceleration of external debt ratio increase is found to be at most in Mexico and Brazil.