Dominant Currencies and External Adjustment
Luis M. Cubeddu,
Nan Li (),
Carolina Osorio Buitron,
Damien Puy () and
No 2020/005, IMF Staff Discussion Notes from International Monetary Fund
The extensive use of the US dollar when firms set prices for international trade (dubbed dominant currency pricing) and in their funding (dominant currency financing) has come to the forefront of policy debate, raising questions about how exchange rates work and the benefits of exchange rate flexibility. This Staff Discussion Note documents these features of international trade and finance and explores their implications for how exchange rates can help external rebalancing and buffer macroeconomic shocks.
Keywords: Currencies; Exchange rates; Exports; Depreciation; Imports; SDN,currency pricing,financing currency,Colombian peso,currency financing,expenditure switching (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ifn, nep-mon and nep-opm
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:imf:imfsdn:2020/005
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in IMF Staff Discussion Notes from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().