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This paper analyzes empirically what determines the choice of countries signing an RMB-denominated Bilateral Swap Agreement (BSA) with China. The gravity motif is predominant (both in terms of country size and distance from China) but so is the trade motif, in terms of both exports to China and...
Persistent link: https://www.econbiz.de/10012148698
The paper investigates the determinants of geographical distribution of international currencies in global financial market transactions. We implement a gravity model, in which international currency distribution depends on the characteristics of the source and destination countries. We find...
Persistent link: https://www.econbiz.de/10012148761
This research empirically examines the impact of China's Renminbi (RMB) bilateral swap agree-ments (BSAs) on the usage of the currency in cross-border trade transactions. By using a unique dataset from SWIFT including cross-border settlement messages of 91 countries/regions between October 2010...
Persistent link: https://www.econbiz.de/10012148858
This paper analyzes empirically what determines the choice of countries signing an RMB-denominated Bilateral Swap Agreement (BSA) with China. The gravity motif is predominant (both in terms of country size and distance from China) but so is the trade motif, in terms of both exports to China and...
Persistent link: https://www.econbiz.de/10010818581
RMB averaged 6 %, compared to an average share of 58 % for the USD and 35 % for the euro. We also find that the USD, euro …, euro and yen weights. An increase in financial markets volatility leads developing countries to increase anchor weights of … the developed countries currencies USD, euro and yen. Heightened geopolitical uncertainty only increases the weights of …
Persistent link: https://www.econbiz.de/10014520282
The first part of this paper is a review of significant papers in the vast literature on optimum currency area (OCA) theory.The author focuses on the main classical contributions, then considers modern treatment of OCA theory.The second part considers empirical literature on the types of...
Persistent link: https://www.econbiz.de/10012148460
and the euro LIBOR. The paper also considers the insulating properties of Russian basket targeting policies during the … with ! the monetary policies of the euro area. The central conclusion here is that, in conditions of managed floating …
Persistent link: https://www.econbiz.de/10012148606
economic variables determine a given country's currency bloc affiliation. The dollar bloc differs from the euro bloc in that …
Persistent link: https://www.econbiz.de/10012148679
In contrast to the well established markets such as the dollar-euro market, recent CIP deviations observed in the …
Persistent link: https://www.econbiz.de/10012148683
from the euro area (EA) during the financial crisis in terms of both cyclical dispersion (i.e. the deviation of output gaps …
Persistent link: https://www.econbiz.de/10012148689