Dollarization Waves: New Evidence from a Comprehensive International Bond Database

Swapan-Kumar Pradhan (), Eswar S. Prasad and Judit Temesvary
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Swapan-Kumar Pradhan: https://www.bis.org/author/swapan-kumar_pradhan.htm

No 1429, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We investigate how the U.S. dollar's prominence in the denomination of international debt securities has evolved in recent decades, using a comprehensive global dataset with far more extensive coverage than datasets used in prior literature. We find no monotonic dollarization or de-dollarization trend; instead, the dollar's share exhibits a wavelike pattern. We document three dollarization waves since the 1960s. The last wave, following the global financial crisis, lifted the dollar's share nearly back to its level at the euro's launch in 2000. Our findings are robust to composition and currency valuation effects as well as alternative data definitions.

Keywords: International debt securities; Currency denomination; Nationality and residence basis; Reserve currencies; Banks; Nonbank financial institutions; Nonfinancial corporations (search for similar items in EconPapers)
JEL-codes: F30 F41 G15 (search for similar items in EconPapers)
Date: 2025-12-16
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgif:1429

DOI: 10.17016/IFDP.2025.1429

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