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Currency Compositions of International Reserves and the Euro Crisis

During recent years, central banks have increased the levels of their international reserves at an unprecedented pace. In this paper, we introduce new country-specific reserve data and examine determinants of the composition of international reserves. Using a dataset of 36 countries (and the euro ar...

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Detalles Bibliográficos
Autores principales: Laser, Falk Hendrik, Weidner, Jan
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9395879/
http://dx.doi.org/10.1007/s11079-022-09681-7
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author Laser, Falk Hendrik
Weidner, Jan
author_facet Laser, Falk Hendrik
Weidner, Jan
author_sort Laser, Falk Hendrik
collection PubMed
description During recent years, central banks have increased the levels of their international reserves at an unprecedented pace. In this paper, we introduce new country-specific reserve data and examine determinants of the composition of international reserves. Using a dataset of 36 countries (and the euro area) for the years from 1996 to 2016, we identify currency pegs and trade patterns as determinants of currency compositions. Our results emphasize the importance of transaction motives for the composition of currency reserves. The euro crisis appears to have been a setback for the euro, which temporarily seemed to challenge the US dollar as the most important international reserve currency and potentially impacted the determination of international reserve compositions.
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spelling pubmed-93958792022-08-23 Currency Compositions of International Reserves and the Euro Crisis Laser, Falk Hendrik Weidner, Jan Open Econ Rev Research Article During recent years, central banks have increased the levels of their international reserves at an unprecedented pace. In this paper, we introduce new country-specific reserve data and examine determinants of the composition of international reserves. Using a dataset of 36 countries (and the euro area) for the years from 1996 to 2016, we identify currency pegs and trade patterns as determinants of currency compositions. Our results emphasize the importance of transaction motives for the composition of currency reserves. The euro crisis appears to have been a setback for the euro, which temporarily seemed to challenge the US dollar as the most important international reserve currency and potentially impacted the determination of international reserve compositions. Springer US 2022-08-23 2022 /pmc/articles/PMC9395879/ http://dx.doi.org/10.1007/s11079-022-09681-7 Text en © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2022, Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Research Article
Laser, Falk Hendrik
Weidner, Jan
Currency Compositions of International Reserves and the Euro Crisis
title Currency Compositions of International Reserves and the Euro Crisis
title_full Currency Compositions of International Reserves and the Euro Crisis
title_fullStr Currency Compositions of International Reserves and the Euro Crisis
title_full_unstemmed Currency Compositions of International Reserves and the Euro Crisis
title_short Currency Compositions of International Reserves and the Euro Crisis
title_sort currency compositions of international reserves and the euro crisis
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9395879/
http://dx.doi.org/10.1007/s11079-022-09681-7
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