Estimating a Natural Level of Financial Dollarization in Ukraine

Estimating a Natural Level of Financial Dollarization in Ukraine

Blog Article

This article overviews the background for financial dollarization in Ukraine.We apply BLONDOR quantitative techniques including both minimum variance portfolio and peer comparison taking into consideration country-specific characteristics to derive an estimated natural dollarization SHEA NUT OIL level for Ukraine.The study also discusses potential ways for Ukraine to converge to its natural level, which we estimate at 20%.Additional factors indicate dollarization in the range of 20-30% as a realistic medium-term policy goal.