Effects of a mandatory local currency pricing law on the exchange rate pass-through

Abstract

Effects of a mandatory local currency pricing law on the exchange rate pass-through by Renzo Castellares and Hiroshi Toma Monetary and Economic Department May 2019 Paper produced as part of the BIS Consultative Council for the Americas (CCA) Research Network project "Exchange rates: key drivers and effects on inflation and trade".

The Dollarisation Paradox in Cambodia: Network Externalities Matter

“…Note: Data for Cambodia, Vietnam, and Laos P.D.R. are sourced from Kubo (2017), and data for Peru are obtained from Castellares et al (2019).…”

Domestic price dollarization in emerging economies

“…We present the results broken down by vehicles, real estate, and consumer goods. 11 Table 2 presents 10 Peru exhibits significant levels of price dollarization in spite of regulation that requires prices to be quoted in local currency and, optionally, in any other currency (see Castellares and Toma (2018)). This regulation, in place since 2004, induced a reduction in the levels of price dollarization, which were historically high.…”

Analysis of the Exchange Rate in Peru Between January 2020 and December 2021

“…In the last 30 years, Peru has enjoyed macroeconomic stability that has resulted in low inflation rates and high growth on average (Castellares & Toma, 2020;Chung Alva, 2021;Romero-Flores, 2020). As a result, there has been a clear trend of de-dollarization, with decreasing percentages of credits and deposits in dollars (Arrieta Vidal et al, 2022;Garcia, 2011;Valle Díaz & Huamán Romaní, 2022).…”