Masson, Paul R.
The Growing Role of the Euro in Emerging Market Finance Masson, Paul R. [electronic resource] / Masson, Paul R. - Washington, D.C., The World Bank, 2007 - 1 online resource (27 p.) - Policy research working papers. World Bank e-Library. .
More than eight years after the introduction of the euro, impacts on developing countries have been relatively modest. Overall, the euro has become much more important in debt issuance than in official foreign exchange reserve holdings. The former has benefited from the creation of a large set of investors for which the euro is the home currency, while demand for euro reserves has been held back by the dominance of the dollar as a vehicle and intervention currency, and the greater liquidity of the market for US treasury securities. Fears of further dollar decline may fuel some shifts out of dollars into euros, however, with the potential for a period of financial instability.
10.1596/1813-9450-4381
Currencies and Exchange Rates
Debt
Debt Issuance
Debt Markets
Developing Countries
Emerging Market
Emerging Markets
Finance and Financial Sector Development
Fiscal and Monetary Policy
Foreign Exchange
Foreign Exchange Reserve
Holdings
Home Currency
International Finance
Macroeconomics and Economic Growth
Market Finance
Private Sector Development
Public Sector Development
The Growing Role of the Euro in Emerging Market Finance Masson, Paul R. [electronic resource] / Masson, Paul R. - Washington, D.C., The World Bank, 2007 - 1 online resource (27 p.) - Policy research working papers. World Bank e-Library. .
More than eight years after the introduction of the euro, impacts on developing countries have been relatively modest. Overall, the euro has become much more important in debt issuance than in official foreign exchange reserve holdings. The former has benefited from the creation of a large set of investors for which the euro is the home currency, while demand for euro reserves has been held back by the dominance of the dollar as a vehicle and intervention currency, and the greater liquidity of the market for US treasury securities. Fears of further dollar decline may fuel some shifts out of dollars into euros, however, with the potential for a period of financial instability.
10.1596/1813-9450-4381
Currencies and Exchange Rates
Debt
Debt Issuance
Debt Markets
Developing Countries
Emerging Market
Emerging Markets
Finance and Financial Sector Development
Fiscal and Monetary Policy
Foreign Exchange
Foreign Exchange Reserve
Holdings
Home Currency
International Finance
Macroeconomics and Economic Growth
Market Finance
Private Sector Development
Public Sector Development