Description: The Growing Role of the Euro in Emerging Market Finance

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The Growing Role of the Euro in Emerging Market Finance

More than eight years after the introduction of the euro, impacts on developing countries have been relatively modest. Overall, the euro has become much more important in debt issuance than in official foreign exchange reserve holdings. The forme...

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Bibliographic Details
Main Author:	Masson, Paul R.
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ADVANCED COUNTRIES BALANCE OF PAYMENTS BALANCE OF PAYMENTS DEFICIT BASIS POINTS BID BOND BOND ISSUANCE BOND MARKETS BOND PORTFOLIOS BONDS CAPITAL ACCOUNT CAPITAL ASSET CAPITAL ASSET PRICING CAPITAL CONTROLS CAPITAL INFLOWS CENTRAL BANK CENTRAL BANKS COLLATERAL COMMODITIES COMMODITY COMMODITY PRICES CONSUMER PRICE INDEXES CONVERTIBILITY CORPORATE BOND CORPORATE BOND MARKET CRAWLING PEGS CREDIT RISKS CREDITORS CURRENCY BOARD CURRENCY COMPOSITION CURRENCY MARKETS CURRENCY SWAPS CURRENCY VALUES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUSES DEBT DEBT INSTRUMENTS DEBT ISSUANCE DEBT ISSUES DEBT SECURITIES DEBT SERVICE DEBTS DEFICITS DEGREE OF RISK DEUTSCHE MARK DEVELOPING COUNTRIES DEVELOPING COUNTRY DIFFERENT CURRENCIES DOMESTIC INFLATION DURABLE EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKET DEBT EMERGING MARKET ECONOMIES EMERGING MARKET FINANCE EMERGING-MARKET EQUAL SHARES EQUITIES EURO EUROPEAN MONETARY SYSTEM EX POST RETURNS EXCHANGE MARKET INTERVENTION EXCHANGE RATE EXCHANGE RATE CHANGES EXCHANGE RATE FLEXIBILITY EXCHANGE RATE MOVEMENTS EXCHANGE RATE PEGS EXCHANGE RATE REGIMES EXCHANGE RATE RISK EXCHANGE RATES EXCHANGE RISK EXPOSURE EXTERNAL ASSETS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL FINANCING FEDERAL RESERVE FEDERAL RESERVE BANK FINANCES FINANCIAL CRISES FINANCIAL DEVELOPMENTS FINANCIAL INSTABILITIES FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARY FINANCIAL MARKETS FIXED EXCHANGE RATE FLEXIBLE EXCHANGE RATES FLOATING EXCHANGE RATES FOREIGN ASSETS FOREIGN CURRENCIES FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVE FOREIGN EXCHANGE RESERVES FOREIGN EXCHANGE TRANSACTIONS GLOBAL DEVELOPMENT FINANCE GOVERNMENT BOND GOVERNMENT BOND MARKETS GOVERNMENT BOND YIELDS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT PAPER HOLDING HOLDINGS HOME COUNTRY HOME CURRENCY INDUSTRIAL COUNTRIES INDUSTRIAL COUNTRY INFLATION INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BOND INTERNATIONAL BOND MARKETS INTERNATIONAL BONDS INTERNATIONAL BORROWINGS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DEBT INTERNATIONAL DEBT SECURITIES INTERNATIONAL ECONOMIES INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL LIQUIDITY INTERNATIONAL MONETARY SYSTEM INTERNATIONAL RESERVES INTERNATIONAL TRADE INVESTMENT PORTFOLIO INVESTMENT PURPOSE INVESTMENT PURPOSES JAPANESE YEN LIQUID ASSETS LIQUID MARKET LIQUIDITY LIQUIDITY OF MARKETS LONG-TERM BOND MARKETS LONG-TERM DEBT MARKET CONDITIONS MARKET FINANCE MARKET FOR GOVERNMENT SECURITIES MARKET FOR SECURITIES MARKET LIQUIDITY MARKET PRICE MARKET TRADE MARKET VALUE MATURITY MATURITY MISMATCH MATURITY SPECTRUM MONETARY FUND MONETARY INTEGRATION MONETARY POLICIES MONETARY POLICY NET DEBT NOMINAL EXCHANGE RATES NOMINAL INTEREST RATES NUMERAIRE OFFICIAL RESERVES OPTIMAL PORTFOLIO OPTIMAL PORTFOLIOS OUTPUT PEGS PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIO DIVERSIFICATION PORTFOLIO INFLOWS POSSIBILITY OF DEFAULT POUNDS STERLING PRICE CHANGES RAPID GROWTH RATES OF RETURN REPO REPO MARKET RESERVE CURRENCIES RESERVES RETURN RETURNS RISK AVERSION RISK OF DEFAULT SCENARIOS SECONDARY MARKET SECONDARY MARKETS SETTLEMENT SHORT-TERM CAPITAL SINGLE MARKET SMALL ECONOMIES SOVEREIGN DEBT SOVEREIGN ISSUERS SOVEREIGN RISK STOCK DATA STORE OF VALUE SWAPS SWISS FRANCS TAX TAX COLLECTION TERMS OF TRADE TRADES TRADING TRANSACTIONS COSTS TREASURIES TREASURY TREASURY BILLS TREASURY SECURITIES TREATY VALUATION VENTURE CAPITALIST VOLATILITY WORLD ECONOMY YEN
Online Access:	http://documents.worldbank.org/curated/en/2007/11/8665371/growing-role-euro-emerging-market-finance-growing-role-euro-emerging-market-finance http://hdl.handle.net/10986/7584

Description
Summary:	More than eight years after the introduction of the euro, impacts on developing countries have been relatively modest. Overall, the euro has become much more important in debt issuance than in official foreign exchange reserve holdings. The former has benefited from the creation of a large set of investors for which the euro is the home currency, while demand for euro reserves has been held back by the dominance of the dollar as a vehicle and intervention currency, and the greater liquidity of the market for US treasury securities. Fears of further dollar decline may fuel some shifts out of dollars into euros, however, with the potential for a period of financial instability.