Ree, Jack.

FX Funding Risks and Exchange Rate Volatility-Korea's Case Jack Ree. [electronic resource] / Jack Ree. - Washington, D.C. : International Monetary Fund, 2012. - 1 online resource (29 p.) - IMF Working Papers; Working Paper ; No. 12/268 . - IMF Working Papers; Working Paper ; No. 12/268 .

This paper examines how exchange rate volatility and Korean banks' foreign exchange liquidity mismatches interacted with each other during the Global Financial Crisis, and whether the vulnerability stemming from this interaction has been reduced since then. Structural and cyclical changes after the crisis, including decreasing demand for currency hedges and the diversifying investor base for bonds, point to a possible weakening of the interaction mechanism; and we find evidences are strongly supportive of this.

1475565178 : 18.00 USD

1018-5941

10.5089/9781475565171.001 doi


Bonds
Dollar Funding Market
Exchange Rate Volatility
Exchange Rate
Foreign Exchange Liquidity Mismatch
Hedging


Korea, Republic of

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