Internationalization of Emerging Market Currencies--A Balance Between Risks and Rewards

 
Author/Editor: Ahmed, Faisal ; Wang, Shengzu ; Mateos y Lago, Isabelle ; Maziad, Samar ; Segal, Stephanie ; Farahmand, Pascal ; Das, Udaibir
 
Publication Date: October 19, 2011
 
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Summary: As large emerging market economies take on an increasing role in the global economy, it is useful to explore the possibility of their currencies attaining “international” status. The benefits of currency “internationalization” have to be balanced against country-specific and systemic risks which could result, for instance, from sudden portfolio shifts and reduced network externalities. In this context, the paper contributes to the debate on strengthening the IMS by surveying the evolving landscape of international currencies and examining a number of questions: What is the potential for internationalizing the use of emerging market currencies? What are the benefits/risks to emerging market economies and the system, and how can any risks be managed? And, how might emerging market currency internationalization contribute to IMS stability?
 
Series: Staff Discussion Notes No. 11/17
Subject(s): Currencies | Emerging markets | International monetary system | Financial stability

 
English
Publication Date: October 19, 2011
ISBN/ISSN: 9781463926526 Format: Paper
Stock No: SDNEA2011017 Pages: 26
Price:
US$20.00 (Academic Rate:
US$20.00 )
 
 
English
Publication Date: October 19, 2011
ISBN/ISSN: 978-1-61635-238-7 / 2221-030X Format: A web quality merged PDF
Stock No: SDNET2011017 Pages: 26
Price:
Free
 
 
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