De-dollarisation no guarantee of EM policy autonomy – study
Sarb paper argues sound domestic fundamentals are more crucial than lowering dollar usage
De-dollarisation will neither resolve macroeconomic instability nor increase policy sovereignty for emerging markets (EMs), a new study argues.
The paper, published by the South African Reserve Bank (Sarb) on September 8, asks whether de-dollarisation, defined as the “gradual reduction of reliance on the US dollar in trade, finance and reserves”, can increase policy autonomy in emerging markets.
The authors, Chris Loewald and Manisha Morar, note that the dollar still plays a central role in
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