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...

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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

id	okr-10986-7394
recordtype	oai_dc
spelling	okr-10986-73942021-04-23T14:02:33Z Choosing the Currency Structure for Sovereign Debt : A Review of Current Approaches Melecky, Martin 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 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. 2012-06-07T15:19:57Z 2012-06-07T15:19:57Z 2007-06 http://documents.worldbank.org/curated/en/2007/06/7694702/choosing-currency-structure-sovereign-debt-review-current-approaches http://hdl.handle.net/10986/7394 English Policy Research Working Paper; No. 4246 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	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
spellingShingle	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 Melecky, Martin Choosing the Currency Structure for Sovereign Debt : A Review of Current Approaches
relation	Policy Research Working Paper; No. 4246
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Melecky, Martin
author_facet	Melecky, Martin
author_sort	Melecky, Martin
title	Choosing the Currency Structure for Sovereign Debt : A Review of Current Approaches
title_short	Choosing the Currency Structure for Sovereign Debt : A Review of Current Approaches
title_full	Choosing the Currency Structure for Sovereign Debt : A Review of Current Approaches
title_fullStr	Choosing the Currency Structure for Sovereign Debt : A Review of Current Approaches
title_full_unstemmed	Choosing the Currency Structure for Sovereign Debt : A Review of Current Approaches
title_sort	choosing the currency structure for sovereign debt : a review of current approaches
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2007/06/7694702/choosing-currency-structure-sovereign-debt-review-current-approaches http://hdl.handle.net/10986/7394
_version_	1764401953667809280

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

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