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International Currency Exposure

By Yin-Wong Cheung (Editor), Frank Westermann (Editor)
eBook
$23.99
By Yin-Wong Cheung (Editor), Frank Westermann (Editor)
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Issues in debates about foreign currency exposure—the denomination of liabilities or assets in foreign currency.

The foreign currency denomination of contracts in international transactions can lead to international currency exposure at the country level with important economic and policy implications. When debts are denominated in foreign currency and revenues in domestic currency, exchange rate fluctuations can result in balance sheet effects for countries with either net asset or liabilit...

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