Bilateral Invoicing Currency Ratios: A methodology to calculate them from unilateral invoicing currency ratios

Yushi Yoshida and Fabien Rondeau

Economics Working Paper Archive (University of Rennes & University of Caen) from Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS

Abstract: The worldwide database of invoicing currency ratios is provided by Boz, Casas, Georgiadis, Gopinath, Le Mezo, Mehl, and Nguyen (2022). However, the invoice ratios are aggregated at the country level. The invoice ratio of a country is the same for all trading partners. We suggest obtaining a bilateral invoice ratio by reverse- engineering the unilateral invoice ratios. In this note, we describe the methodology to conduct this extraction algorithm. With the bilateral trading partners’ weights, the bilateral invoicing matrix is obtained by pre-multiplying the Moore-Penrose pseudoinverse to the unilateral invoicing vector.

Keywords: invoice currency; invoicing ratio datasets; Moore-Penrose (pseudoinverse) (search for similar items in EconPapers)
JEL-codes: F14 F31 F36 (search for similar items in EconPapers)
Date: 2024-09
New Economics Papers: this item is included in nep-int
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Journal Article: Bilateral invoicing currency ratios: A methodology to calculate them from unilateral invoicing currency ratios (2025)
Working Paper: Bilateral invoicing currency ratios: A methodology to calculate them from unilateral invoicing currency ratios (2025)
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