Estimating a Natural Level of Financial Dollarization in Ukraine
a National Bank of Ukraine, Kyiv, Ukraine
b International Monetary Fund
Abstract

This article overviews the background for financial dollarization in Ukraine. We apply quantitative techniques including both minimum variance portfolio and peer comparison taking into consideration country-specific characteristics to derive an estimated natural dollarization 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.

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Avaliable online 26 March 2019
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Cite as: Khvedchuk, K., Sinichenko, V., Topf, B. (2019). Estimating a Natural Level of Financial Dollarization in Ukraine. Visnyk of the National Bank of Ukraine, 247, 38-44. https://doi.org/10.26531/vnbu2019.247.03
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