Policies for transactional de-dollarization: A laboratory study

Vidal, Johar Arrieta; Hoyle, David Florian; Vargas, Kristian López; Vásquez, Valeria Morales

doi:10.1016/j.jebo.2022.05.012

Cited by 6 publications

(3 citation statements)

References 19 publications

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“…Matsuyama et al (1993) have two mechanisms to de-dollarization: taxes on domestic transactions in foreign currency and a reduction in the storage cost of local currency. According to Vidal et al (2022) these mechanisms are effective. Achieving de-dollarization can be a challenging task, but their other mechanisms: Promoting the use of alternative currencies: Countries can encourage the use of other currencies, such as the euro, yen, or Chinese yuan, in addition to the new currencies of the BRICS countries, in international transactions.…”

Section: Conclusion and Recommendationsmentioning

confidence: 99%

Petrodollar and De-dollarization: A Survey from OAPEC Countries

Wagdi,

Elnahrawy,

Fathi

2023

E3S Web Conf.

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The study investigates reducing dependence on the dollar as a supreme currency for oil trade and the basis of the global monetary system and analyses the state of the dominance of the US dollar as an exchange currency in the global oil market. According to an exploration of AOPEC (Organization of Arab Petroleum Exporting Countries) countries’ views on the petrodollar after the second shock of globalization, since the second quarter of 2022, with the start of the war in Ukraine, the world order has witnessed an economic war alongside a conventional war. The study created a questionnaire in Arabic for professionals and academics in several Arab oil-exporting countries in the first quarter of 2023. According to the results of the questionnaire analysis, participants hold differing opinions. The global oil market is ready to abandon the petrodollar; the weight of giving up the petrodollar will be more than 50% of the oil market; it will most likely take three to five years. Russia and China are attempting to undermine U.S. control over the global monetary system for political reasons; US efforts to impose the Russian oil price cap are a source of systematic risk to them; Russia’s and China’s governments employ a wide range of strategies to stop that; on the other hand, the currency diversification policy that oil-exporting countries follow in order to preserve their oil revenues has become a necessity to avoid or reduce the risks of imported inflation and additional fluctuations in the value of the US dollar.

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Section: Conclusion and Recommendationsmentioning

confidence: 99%

Petrodollar and De-dollarization: A Survey from OAPEC Countries

Wagdi,

Elnahrawy,

Fathi

2023

E3S Web Conf.

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“…The USD has long been used as an Econo-legal means to influence foreign nations and advance the US's economic and political interests. 116 . The present trend of dedollarization is a possible result of geopolitics as viewed from the perspective of the US.…”

Section: B the Emerging Trend Of De-dollarizationmentioning

confidence: 99%

Should the Federal Reserve Issue a Digital Currency as Virtual Legal Tender? An Econo-legal Analysis Based on China’s Master Plan for De-dollarization

Hung

2023

Am. j. trade policy

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Mainstream discussion on whether the Federal Reserve should issue a central bank digital currency (CBDC) as virtual legal tender focuses on five aspects related to the American domestic environment -- efficiency, privacy, safety and security, financial inclusion and exclusion, and impact on the current economic systems and monetary policies. This article takes a new and broader perspective on this critical issue by investigating how China, being the arch-international competitor of the US, has formulated a well-designed and structured master plan supported by various econo-legal strategies to pursue the objective of de-dollarization through the utilization of a China-currency-based CBDC with “controllable anonymity” and different multicurrency exchange and settlement platforms. Given the reality that de-dollarization will inevitably weaken the ubiquitous platform of international trade and payment of the US dollar (USD), can the Federal Reserve use the same tool, a USD-based CBDC, to counteract or even reverse the declining trend of the American currency’s versatility and far-reaching capability? This article recommends that the Federal Reserve can slow down the de-dollarization movement by issuing a CBDC at both the wholesale and retail levels, emphasizing the control of the former while having more cooperation with private banks for the latter.

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“…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). This favourable environment for business growth has allowed many companies to move from informality to formality , while at the same time contributing to the country's economic growth (Grijalva Salazar et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

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

Grijalva-Salazar,

Fernández-Bedoya,

Suyo-Vega

et al. 2023

Acad. J. Interdiscip. Stud.

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Various events can affect a country's exchange rate. In the period between 2020 and 2021, Peru experienced the severe effects of the COVID-19 pandemic, as well as political instability. This article has two objectives: first, to explore what was the average monthly exchange rate (sale) in Peru between January 2020 and December 2021; second, to determine if there is any significant trend in the data shown for that period. The research presented a quantitative approach, descriptive level, non-experimental design and retrospective cross-sectional cut. The technique was documentary review and the instrument was the registration form. The data provided by the Central Reserve Bank of Peru (Monthly average bank exchange rate -sale-) were explored. As a result, it was found that the lowest value was recorded in January 2020 (S/3,329), while the highest value was recorded in September 2021 (S/4,111). In addition, the result of the Mann-Kendall trend statistical test resulted in a p. value of < 0.0001, thus there is a significant trend in the average monthly exchange rate (sale) in Peru between January 2020 and December 2021. Received: 21 February 2023 / Accepted: 23 July 2023 / Published: 5 September 2023

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Policies for transactional de-dollarization: A laboratory study

Cited by 6 publications

References 19 publications

Petrodollar and De-dollarization: A Survey from OAPEC Countries

Petrodollar and De-dollarization: A Survey from OAPEC Countries

Should the Federal Reserve Issue a Digital Currency as Virtual Legal Tender? An Econo-legal Analysis Based on China’s Master Plan for De-dollarization

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

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