Donnenfeld, Shabtai; Haug, Alfred A. - In: International Journal of Finance & Economics 13 (2008) 2, pp. 184-198
This paper provides an explanation for the choice of currency of invoice of exports to the US. We find an empirical relationship between the riskiness of the exchange rate and the fraction of imports invoiced in the importer's currency, the exporter's currency, and a third country currency. The...