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

Melecky, Martin

World Bank, Washington, DC

关键词: ACCOUNTING;    ARBITRAGE;    ASSET AND LIABILITY MANAGEMENT;    BALANCE SHEET;    BALANCE SHEETS;   

DOI  :  10.1596/1813-9450-4246
RP-ID  :  WPS4246

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper acknowledges the fact thatsome countries have to borrow in foreign currencies due tothe various constraints they face. Starting from this point,the author reviews approaches for trying to determine thecurrency structure for sovereign debt, and discusses someissues inherent in these approaches. The analysis mainlyfocuses on the correlations of domestic fundamentals withthe actual versus equilibrium exchange rate in light of thelong-term perspective of a debt manager and changingexchange rate regimes. In addition, the author makes someobservations on the characterization of exchange ratevolatilities in the existing approaches.