Choosing the Currency Structure for Sovereign Debt : A Review of Current Approaches

Choosing the Currency Structure for Sovereign Debt : A Review of Current Approaches

This paper acknowledges the fact that some countries have to borrow in foreign currencies due to the various constraints they face. Starting from this point, the author reviews approaches for trying to determine the currency structure for sovereign...

Full description

Bibliographic Details
Main Author: Melecky, Martin
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ACCOUNTING
ARBITRAGE
ASSET AND LIABILITY MANAGEMENT
BALANCE SHEET
BALANCE SHEETS
BENCHMARK
BENCHMARKS
BOND MARKET
BOND MARKETS
BONDS
BOOK VALUE
BORROWING
CAPITAL MARKETS
CENTRAL BANK
CENTRAL BANKS
COMPARATIVE ADVANTAGES
CONTAGION
CREDITOR
CRISES EPISODES
CURRENCY COMPOSITION
CURRENCY CRISES
CURRENCY CRISIS
CURRENCY DEBT
CURRENCY DEBTS
CURRENCY MISMATCHES
CURRENCY RISK
DEBT
DEBT CRISES
DEBT CRISIS
DEBT INSTRUMENTS
DEBT MANAGEMENT
DEBT MANAGEMENT AUTHORITY
DEBT MANAGEMENT CAPACITIES
DEBT MANAGEMENT DEPARTMENT
DEBT MANAGER
DEBT MANAGERS
DEBT PORTFOLIO
DEBT PORTFOLIOS
DEBT RATIO
DEBT SERVICING
DEBT STRUCTURE
DEBTS
DOMESTIC CURRENCIES
DOMESTIC CURRENCY
DOMESTIC ECONOMY
ECONOMETRIC MODELS
ECONOMIC DEVELOPMENT
ECONOMIC INTEGRATION
ECONOMIC STRUCTURE
EMERGING MARKET
ENDOGENOUS VARIABLES
EQUILIBRIUM
EXCHANGE RATE
EXCHANGE RATES
EXPENDITURES
EXPORTS
EXTERNAL DEBT
EXTERNAL SHOCKS
FORECASTS
FOREIGN CURRENCIES
FOREIGN CURRENCY
FOREIGN CURRENCY DEBT
FOREIGN DEBT
FOREIGN EXCHANGE
FOREIGN INVESTORS
FOREIGN RESERVES
FOREIGN TRADE
FOREIGN-CURRENCY DEBT
FOREIGN-CURRENCY DEBTS
GDP
GOVERNMENT DEBT
GROWTH RATE
INSTITUTIONAL INVESTORS
INTEREST RATE
INTEREST RATE RISK
INTEREST RATES
LOCAL-CURRENCY DEBT
MACROECONOMIC POLICIES
MONETARY POLICY
NOMINAL INTEREST RATE
OPTIMIZATION
OUTSTANDING DEBT
PORTFOLIO
PRIVATE SECTOR
REAL GDP
REAL INTEREST RATE
RISK PREMIA
RISK PREMIUM
SOVEREIGN BORROWERS
SOVEREIGN CREDIT RISK
SOVEREIGN DEBT
VAR MODELS
Online Access:http://documents.worldbank.org/curated/en/2007/06/7694702/choosing-currency-structure-sovereign-debt-review-current-approaches
http://hdl.handle.net/10986/7394
Description
Summary:This paper acknowledges the fact that some countries have to borrow in foreign currencies due to the various constraints they face. Starting from this point, the author reviews approaches for trying to determine the currency structure for sovereign debt, and discusses some issues inherent in these approaches. The analysis mainly focuses on the correlations of domestic fundamentals with the actual versus equilibrium exchange rate in light of the long-term perspective of a debt manager and changing exchange rate regimes. In addition, the author makes some observations on the characterization of exchange rate volatilities in the existing approaches.

Similar Items