Antonin Chenard, Barry Eichengreen, Eric Monnet, Florian Morvillier
The motives for the accumulation and management of foreign exchange reserves are a key topic in international economics. This column highlights an aspect of the international monetary system that has been the subject of little research: the distinction between foreign exchange reserves held as deposits and securities. Using new data for 109 countries since 1950, it documents a major shift toward securities starting in the late 1990s. This reflected reserve accumulation beyond immediate liquidity needs, consistent with mercantilist motives.
Πηγή: Voxeu