BIS paper uncovers new evidence on FX reserve and capital flow link

bis-5
The BIS. Photo by Dan Hinge
Dan Hinge

The actions of domestic investors are an important but widely overlooked factor in determining how capital flows respond to levels of foreign exchange reserves, according to a working paper that was published on October 1 by the Bank for International Settlements (BIS).

The paper marks the latest effort in the BIS's bid to persuade economists to study gross, not net, capital flows, and points to a "previously undocumented" benefit of holding reserves.

Authored by economists Enrique Alberola of t

To continue reading...

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 indvidual account here: