the volatility for over hundred countries around the world. We used the monthly political risk data from the International … Country Risk Guide and formed three measures of political uncertainty which are government action, conflicts and quality of … January 1984 to December 2013. Our findings suggest that political risk variables exerts a statistically negative effect on …

We leverage supervisory microdata to uncover the role of global banks' risk limits in driving exchange rate dynamics …. Consistent with a model of currency intermediation under risk constraints, shocks to dealers' risk limits lead to price and …. These shocks exacerbate the effects of net currency demand on exchange rate movements, as predicted by theory, and trigger …