The Size of Foreign Exchange Reserve and Local Currency Internationalization: Cross-Country Evidence

2013 ◽  
Author(s):  
Zhiwen Zhang
Keyword(s):  
Foreign Exchange ◽  
Foreign Exchange Reserve ◽  
Local Currency ◽  
Cross Country ◽  
Currency Internationalization

THE SIZE OF FOREIGN EXCHANGE RESERVES AND LOCAL CURRENCY INTERNATIONALIZATION: CROSS-COUNTRY EVIDENCE

2016 ◽  
Vol 61 (05) ◽  
pp. 1550081 ◽  
Author(s):  
ZHIWEN ZHANG
Keyword(s):  
Foreign Exchange ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
International Reserves ◽  
Chinese Government ◽  
Foreign Exchange Reserves ◽  
Major Power ◽  
Local Currency ◽  
Cross Country ◽  
Currency Internationalization

This paper produces the first cross-country evidence on the relationship between the size of foreign exchange reserves and local currency internationalization using a sample of Switzerland, Japan and the UK. It finds that a high ratio of foreign exchange reserves to international reserves has a significant, but negative, impact on local currency internationalization during the period 1976–2009. After controlling for interest rate differential, different indicators for long-run depreciation and volatility of exchange rates, as well as the once-in-a-century global financial crisis of 2007–2009, the above conclusion still holds. Additionally, these results are robust to different methods (Pooled OLS and Pooled IV/2SLS) and measures of the scale of foreign exchange reserves. This study is informative for any policy decisions and will provide a strategic reference for the Chinese government as it optimizes the composition of its international reserves, promotes the process of renminbi (RMB) internationalization and becomes a major power through financial development.

International Bank for Reconstruction and Development

1960 ◽  
Vol 14 (4) ◽  
pp. 659-661
Keyword(s):  
United States ◽  
Foreign Exchange ◽  
Irrigation Scheme ◽  
Annual Increase ◽  
Local Currency ◽  
International Bank ◽  
Irrigation Projects ◽  
The World ◽  
The Republic ◽  
The Government

The International Bank for Reconstruction and Development announced on June 17, 1960, a twenty-year term loan of $15.5 million, bearing 6 percent interest per annum, with amortization beginning in 1963, to the Republic of the Sudan, to finance most of the remaining foreign exchange costs of the Managil Irrigation Scheme, local currency requirements to be provided by the government of the Sudan. The project was an extension of, and patterned on, the Gezira Scheme, one of the most successful irrigation projects in the world, and a 10 percent annual increase in the value of Sudan's agricultural output was expected to result from its development. Three United States banks participated in the loan.

Growth of China's foreign exchange reserve

2008 ◽  
Vol 1 (1) ◽  
pp. 53-62 ◽  
Author(s):  
Zhang Shuguang ◽  
Zhang Bin
Keyword(s):  
Foreign Exchange ◽  
Foreign Exchange Reserve
Sign in / Sign up

Export Citation Format

Share Document