Currency

Marco Garofalo, Giovanni Rosso and Roger Vicquery Most international trade is denominated in dominant currencies such as the US dollar. What explains the adoption of dominant currency pricing and what are its macroeconomic implications? In a recent paper, we explore a rare instance of transition in aggregate export invoicing patterns. In the aftermath of the … Continue reading Selling England (no longer) by the pound: currency-mismatches and the dollarisation of UK exports →

Argentina and Brazil are striving for a common currency. Such a union could boost regional trade and lead to more independence from the US.

The post A Step Towards Greater Financial Autonomy appeared first on scheerpost.com.

“They offer nothing and destroy everything”. Dangers for Sierra Leone’s people are growing – but the drivers of the situation will not be unfamiliar to UK readers Skwawkbox has received the article below, written by a Sierra Leonean journalist whose name is withheld because of the risk of reprisals. For me the year 2022 has […]

Distributed ledger technologies (DLTs) have garnered growing interest in recent years and are making inroads into traditional finance. One purported benefit of DLTs is their ability to bring about “atomic” settlement. Indeed, several recent private sector projects (SDX, Fnality, HQLAx) aim to do just that. But what exactly is atomic settlement? In this post, we explain that atomic settlement, as it is often defined, combines two distinct properties: instant settlement and simultaneous settlement, which should be kept separate.

Currency values are important both for the real economy and the financial sector. When faced with currency market pressures, some central banks and finance ministries turn to foreign exchange intervention (FXI) in an effort to reduce realized currency depreciation, thus diminishing its economic and financial consequences. This post provides insights into how effective these interventions might be in limiting currency depreciation.