Central banks may have to become ‘dealers of last resort’ – BIS economists

The Bank for International Settlements, Basel
The Bank for International Settlements
Photo: Ulrich Roth

Central banks have had to innovate rapidly in the face of the coronavirus pandemic. The latest innovation may see some becoming “dealers of last resort”, economists at the Bank for International Settlements say.

Boris Hofmann, Ilhyock Shim and Hyun Song Shin say some emerging market economy (EME) central banks may find defending their currencies using foreign exchange reserves is not enough to fight capital outflows and a destabilising currency depreciation.

“In particular, they may need

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account