De-dollarization Determinants in Post-Soviet States

A plenty of articles illustrate that a high dollarization level still persists in many states which harms their economic environment. The present research is intended to deepen understanding in the sphere of dollarization determinants. This project investigates dollarization in Post-Soviet Union countries from 1995 to 2014. With the use of panel data for the last twenty years, pooled, fixed and random effects models we analyze deposit de-dollarization determinants in 13 countries. Findings of the research report that exchange rate, interest rate differential between national and foreign currency deposits and net foreign assets are important de-dollarization determinants for states in Post-Soviet Union zone. Similar results have been obtained by earlier researchers for other countries. Key words: de-dollarization determinants, deposit, Post-Soviet Union countries, monetary policy