Currencies of External Balance Sheets
Title | Currencies of External Balance Sheets PDF eBook |
Author | Mr. Cian Allen |
Publisher | International Monetary Fund |
Total Pages | 50 |
Release | 2023-11-17 |
Genre | Business & Economics |
ISBN |
This paper assembles a comprehensive dataset of the currency composition of countries’ external balance sheets for 50 economies over the period 1990–2020. We document the following findings: (i) the US dollar and the euro still dominate global external balance sheets; (ii) there were striking changes in the currency composition across countries since the 1990s, with many emerging markets having moved from short to long positions in foreign currency, thus moving away from the so-called “original sin”; (iii) financial and tradeweighted exchange rates are weakly correlated, suggesting the commonly used trade indices do not adequately reflect the wealth effects of currency movements, and (iv) the large wealth transfers across countries during COVID-19 and the global financial crises increased global imbalances in the former, and reduced them in the latter.
Foreign Currency Bank Funding and Global Factors
Title | Foreign Currency Bank Funding and Global Factors PDF eBook |
Author | Signe Krogstrup |
Publisher | International Monetary Fund |
Total Pages | 64 |
Release | 2018-05-09 |
Genre | Business & Economics |
ISBN | 1484353668 |
The literature on the drivers of capital flows stresses the prominent role of global financial factors. Recent empirical work, however, highlights how this role varies across countries and time, and this heterogeneity is not well understood. We revisit this question by focusing on financial intermediaries’ funding flows in different currencies. A concise portfolio model shows that the sign and magnitude of the response of foreign currency funding flows to global risk factors depend on the financial intermediary’s pre-existing currency exposure. An analysis of a rich dataset of European banks’ aggregate balance sheets lends support to the model predictions, especially in countries outside the euro area.
Debt-Related Vulnerabilities and Financial Crises - an Application of the Balance Sheet Approach to Emerging Market Countries
Title | Debt-Related Vulnerabilities and Financial Crises - an Application of the Balance Sheet Approach to Emerging Market Countries PDF eBook |
Author | International Monetary Fund. Policy Development and Review Dept. |
Publisher | International Monetary Fund |
Total Pages | 63 |
Release | 2004-01-07 |
Genre | Business & Economics |
ISBN | 1498330274 |
NULL
Using the Balance Sheet Approach in Surveillance
Title | Using the Balance Sheet Approach in Surveillance PDF eBook |
Author | Mr.Johan Mathisen |
Publisher | International Monetary Fund |
Total Pages | 46 |
Release | 2007-03-29 |
Genre | Business & Economics |
ISBN | 1589066049 |
A distinguishing feature of emerging market crises in recent years has been the sudden disruption in the capital accounts of the economy. These crises have highlighted the need for closer attention to macroeconomic vulnerabilities in sectoral balance sheets. This book enhances application of the balance sheet approach to surveillance by taking advantage of new data sets that provide detailed, frequent, and timely financial statistics.
Cross-Border Currency Exposures
Title | Cross-Border Currency Exposures PDF eBook |
Author | Luciana Juvenal |
Publisher | International Monetary Fund |
Total Pages | 67 |
Release | 2019-12-27 |
Genre | Business & Economics |
ISBN | 1513525379 |
This paper provides a dataset on the currency composition of the international investment position for a group of 50 countries for the period 1990-2017. It improves available data based on estimates by incorporating actual data reported by statistical authorities and refining estimation methods. The paper illustrates current and new uses of these data, with particular focus on the evolution of currency exposures of cross-border positions.
Bank Balance Sheets and External Shocks in Asia: The Role of FXI, MPMs and CFMs
Title | Bank Balance Sheets and External Shocks in Asia: The Role of FXI, MPMs and CFMs PDF eBook |
Author | Zefeng Chen |
Publisher | International Monetary Fund |
Total Pages | 43 |
Release | 2021-01-15 |
Genre | Business & Economics |
ISBN | 1513566830 |
In emerging Asia, banks constitute the dominant source of financing consumption and investment, and bank balance sheets comprise large gross FX assets and liabilities. This paper extends the DSGE model of Gertler and Karadi (2011) to incorporate these key features and estimates a panel vector autoregression on ten Asian economies to understand the role of the banking sector in transmitting spillovers from the global financial cycle to small open economies. It also evaluates the effectiveness of foreign exchange intervention (FXI) and other macroeconomic policies in responding to external financing shocks. External financial shocks affect net external liabilities of banks and the exchange rate, leading to changes in credit supply by banks and investment. For example, a capital outflow shock leads to a deprecation that reduces the net worth and intermediation capacity of banks exposed to foreign currency liabilities. In such cases, the exchange rate acts as shock amplifier and sterilized FXI, often deployed by Asian economies, can help cushion the economy. By contrast, with real shocks, the exchange rate serves as a shock absorber, and any FXI that weakens that function can be costly. We also explore the effectiveness of the monetary policy interest rate, macroprudential policies (MPMs) and capital flow management measures (CFMs).
International Reserves and Foreign Currency Liquidity
Title | International Reserves and Foreign Currency Liquidity PDF eBook |
Author | International Monetary Fund. Statistics Dept. |
Publisher | International Monetary Fund |
Total Pages | 258 |
Release | 2015-01-07 |
Genre | Business & Economics |
ISBN | 1484350162 |
This update of the guidelines published in 2001 sets forth the underlying framework for the Reserves Data Template and provides operational advice for its use. The updated version also includes three new appendices aimed at assisting member countries in reporting the required data.