EconPapers    
Economics at your fingertips  
 

A historical perspective on prudential regulation, currency mismatches and exchange rates in Latin America and the Caribbean

Martin Tobal and Renato Yslas
Additional contact information
Renato Yslas: Banco de México

No 70, Working Papers from Red Nacional de Investigadores en Economía (RedNIE)

Abstract: This paper runs a survey across seventeen countries from Latin American and the Caribbean about the use, implementation characteristics and policy motivations of limits and requirements on FX positions, as well as the exchange rate regimes of these economies over 1992-2012. Among other novel stylized facts, we show that when referring to policy motivations, national authorities linked their regulatory measures mostly to currency mismatches and fluctuations of the exchange rate, and this pattern was clearer for the more flexible exchange rate regimes adopted in the aftermath of the currency crisis of the 1990s and early 2000s. Thus, we use the survey and the synthetic control method to show that changes in limits and requirements on FX positions affected fluctuations of the exchange rate.

Keywords: Prudential Regulation; Exchange Rate Regimes; Foreign Currency Positions (search for similar items in EconPapers)
JEL-codes: E58 F31 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2021-05
New Economics Papers: this item is included in nep-cba, nep-his and nep-mon
References: Add references at CitEc
Citations:

Downloads: (external link)
https://rednie.eco.unc.edu.ar/files/DT/70.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aoz:wpaper:70

Access Statistics for this paper

More papers in Working Papers from Red Nacional de Investigadores en Economía (RedNIE) Contact information at EDIRC.
Bibliographic data for series maintained by Laura Inés D Amato ().

 
Page updated 2025-03-22
Handle: RePEc:aoz:wpaper:70