Currency Diversification of Reserves and Sovereign Debt for Small Open Economies:
An approach for minimizing risk through diversification of foreign exchange reserves and sovereign borrowings is proposed for central banks of small open economies. This approach--developed in a simple 2-period, 3-country framework--differs from past work in that the elements of exchange and price r...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1991
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Schriftenreihe: | IMF Working Papers
Working Paper No. 91/109 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | An approach for minimizing risk through diversification of foreign exchange reserves and sovereign borrowings is proposed for central banks of small open economies. This approach--developed in a simple 2-period, 3-country framework--differs from past work in that the elements of exchange and price risk associated with trade and payments are considered in the portfolio allocation problem. The analysis shows that the net level of reserves and the primary transactions balance affect the optimal portfolio leading to deviations from the optimal allocation prescribed by the classical portfolio model. In addition, this result has implications for the currency composition of exchange market intervention transactions |
Beschreibung: | 1 Online-Ressource (48 p) |
ISBN: | 1451946082 9781451946086 |
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spelling | Rajasingham, Indi Verfasser aut Currency Diversification of Reserves and Sovereign Debt for Small Open Economies Rajasingham, Indi Washington, D.C International Monetary Fund 1991 1 Online-Ressource (48 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 91/109 An approach for minimizing risk through diversification of foreign exchange reserves and sovereign borrowings is proposed for central banks of small open economies. This approach--developed in a simple 2-period, 3-country framework--differs from past work in that the elements of exchange and price risk associated with trade and payments are considered in the portfolio allocation problem. The analysis shows that the net level of reserves and the primary transactions balance affect the optimal portfolio leading to deviations from the optimal allocation prescribed by the classical portfolio model. In addition, this result has implications for the currency composition of exchange market intervention transactions Online-Ausg http://elibrary.imf.org/view/IMF001/01480-9781451946086/01480-9781451946086/01480-9781451946086.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Rajasingham, Indi Currency Diversification of Reserves and Sovereign Debt for Small Open Economies |
title | Currency Diversification of Reserves and Sovereign Debt for Small Open Economies |
title_auth | Currency Diversification of Reserves and Sovereign Debt for Small Open Economies |
title_exact_search | Currency Diversification of Reserves and Sovereign Debt for Small Open Economies |
title_exact_search_txtP | Currency Diversification of Reserves and Sovereign Debt for Small Open Economies |
title_full | Currency Diversification of Reserves and Sovereign Debt for Small Open Economies Rajasingham, Indi |
title_fullStr | Currency Diversification of Reserves and Sovereign Debt for Small Open Economies Rajasingham, Indi |
title_full_unstemmed | Currency Diversification of Reserves and Sovereign Debt for Small Open Economies Rajasingham, Indi |
title_short | Currency Diversification of Reserves and Sovereign Debt for Small Open Economies |
title_sort | currency diversification of reserves and sovereign debt for small open economies |
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