Finnish paper finds sterilisation bonds can benefit Asia

Asia

A discussion paper published by the Bank of Finland on January 18 has highlighted the rapid growth in the use of sterilisation bonds by central banks in Asia, finding that the trend is likely to have a number of benefits for the region.

Researcher Aaron Mehrotra examines the cases of China, India, Indonesia, Korea, Malaysia and Thailand, finding that the stock of outstanding central bank bills has increased rapidly in recent years, as central banks move to sterilise foreign exchange

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