Economics at your fingertips  

Dollarisation in Sub-Saharan Africa

Juan Corrales (), Patrick Imam, Sebastian Weber () and Etienne Yehoue

Journal of African Economies, 2016, vol. 25, issue 1, 28-54

Abstract: This article introduces an extended database on dollarisation in sub-Saharan Africa (SSA). We document the pattern of dollarisation in SSA economies over the last decade and assess the determinants of dollarisation in SSA compared with the rest of the world. In contrast to other regions, SSA has experienced an increase in dollarisation over the last 10 years, despite examples of successful de-dollarisation, such as Angola, Mozambique and Zambia. Traditional factors such as the optimal portfolio choice arguments contribute only little, while market development contributes most to explaining the variation of dollarisation in SSA. While these factors can account for a significant fraction of the dollarisation in SSA, there is still a non-negligible portion of dollarisation in SSA that is yet to be explained, suggesting that there is some unique feature, specific to SSA, which is not fully captured by traditional explanatory variables. Despite an improved macroeconomic environment, dollarisation remains elevated, likely due to the region's volatile history. This indicates that dollarisation should decline going forward provided that the recently gained stability is preserved.

Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Journal of African Economies is currently edited by Marcel Fafchamps

More articles in Journal of African Economies from Centre for the Study of African Economies (CSAE) Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

Page updated 2020-10-25
Handle: RePEc:oup:jafrec:v:25:y:2016:i:1:p:28-54.