Non-financial firms finance the economy – BIS paper
Authors find non-financial firms act as important intermediators and take on forex risks
Non-financial firms play an important role in financing the economy, and their activities are often “intertwined” with foreign currency credit, research published by the Bank for International Settlements finds.
In the working paper, Bryan Hardy and Felipe Saffie draw on data from Mexican non-financial firms that includes details on the currency and structure of assets and liabilities. They find firms extend trade credit to their customers “and others”, acting as financial intermediators even
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