Does reserve accumulation lead to higher currency-risk taking in the corporate sector? Firm-level evidence for Latin America

Sengupta, Rajeswari (2010): Does reserve accumulation lead to higher currency-risk taking in the corporate sector? Firm-level evidence for Latin America.

Abstract

I explore an empirically robust but previously undocumented association between the foreign exchange re- serves accumulated by central banks of emerging market economies and dollar-denominated debt held in the balance sheets of non financial sector firms. Borrowing in dollars can have damaging e

• Item Type: MPRA Paper
• Language: English
• Keywords: Foreign exchange reserves, foreign currency denominated debt, corporate risk-taking, currency depreciation
• Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance; F - International Economics > F3 - International Finance

References

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