57-vol. 29, no. 1, january-june, 2014
Articles

Financial de-dollarization in Bolivia

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  • Marco Antonio Del Río Rivera,
  • Casto Martín Montero Kuscevic
Marco Antonio Del Río Rivera
Universidad Autónoma Gabriel René Moreno
Casto Martín Montero Kuscevic
American University of Beirut
DOI: https://doi.org/10.24201/ee.v29i1.76

Published 2014-01-01

Keywords

  • dollarization,
  • monetary policy,
  • cointegration models

How to Cite

Del Río Rivera, M. A., & Montero Kuscevic, C. M. (2014). Financial de-dollarization in Bolivia. Estudios Económicos De El Colegio De México, 29(1), 3–25. https://doi.org/10.24201/ee.v29i1.76

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Abstract

Using data for the period 1990-2010 and a portfolio optimization approach, we identify the causes of the process of financial de-dollarization in Bolivia (bolivianization). Cointegration tests showed the existence of a long-run relationship between de-dollarization and the optimizing portfolio approach. Additionally, we found that the Tax to Financial Transactions and the exchange rate spread are the most influential variables to determine bolivianization.

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