(BOI) from 2013 to 2019. We find that a purchase of US dollar (USD) 1 billion is on average associated with a depreciation …

In this paper, I examine the heterogeneous exposure of USD-denomination bonds (dollar bonds) to exchange rate risks. An … appreciation of the US dollar increases the credit spread differential, referred to as the Foreign Discount, between dollar bonds … issued by non-US and US firms. I provide both theoretical and empirical evidence that the balance sheet and dollar home bias …

The global dollar system, though repeatedly reported to be on its last legs—most recently in the Global Financial …

.S. dollar. Investors prefer to purchase a safe haven currency (SHC) in times of high exchange rate volatility, parametrized … herein with time-variant degrees of risk aversion. Until the global financial crisis, the U.S. dollar was likely an SHC and …

countries, central bank holdings of dollar reserves are significantly correlated with the dollar-denominated bank borrowing of … stockpile of dollar reserves that allow it to serve as an ex post dollar lender of last resort. The model highlights a novel … externality: individual central banks may tend to over-accumulate dollar reserves, relative to what a global planner would choose …

of dollar forwards by IIs, likely as a hedge against increased FX exposure. As a result, both the USD/NIS spot and …

The U.S. dollar’s nominal effective exchange rate closely tracks global financial conditions, which themselves show a …, especially influencing the fortunes of emerging and developing economies (EMDEs). This paper documents that dollar appreciation … shocks predict economic downturns in EMDEs and highlights policies countries could implement to dampen the effects of dollar …

from non-bank financial institutions (NBFI) and that were more reliant on US dollar funding were significantly more … focus to take into account reliance on NBFI and dollar funding, with less priority for regulations focusing on residency (ie …

In this paper we highlight a new channel through which dollar fluctuations can become a self-fulfilling pro …-cyclical force. We call this mechanism “Imperial Circle” as it makes the dollar the dominant macroeconomic variable in the context of … exposure of the “real” U.S. economy to global developments versus the growing global role of the U.S. dollar. Dollar …