The growing role of the euro in emerging market finance
AbstractMore 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.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4381.
Date of creation: 01 Nov 2007
Date of revision:
Debt Markets; Emerging Markets; Fiscal&Monetary Policy; Currencies and Exchange Rates;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-24 (All new papers)
- NEP-CBA-2007-11-24 (Central Banking)
- NEP-EEC-2007-11-24 (European Economics)
- NEP-MAC-2007-11-24 (Macroeconomics)
- NEP-MON-2007-11-24 (Monetary Economics)
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- Fritz Breuss & Werner Roeger & Jan in 't Veld, 2008.
"Global Impact of a Shift in Foreign Reserves to Euros,"
European Economy - Economic Papers
345, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Fritz Breuss & Werner Roeger & Jan in’t Veld, 2009. "Global impact of a shift in foreign reserves to euros," Empirica, Springer, vol. 36(1), pages 101-122, February.
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