Offshore Markets Drive Trading of Emerging Market Currencies
15 Pages Posted: 17 Dec 2019
Date Written: December 8, 2019
FX markets for the currencies of emerging market economies grew more rapidly than those for major currencies between 2016 and 2019, rising from 19% to almost 25% of global turnover. At the same time, these currencies attracted a wider range of participants and saw a rapid increase in offshore trading activity. Offshore markets tended to drive onshore markets during times of global market stress.
JEL Classification: F31, G12, G23
Suggested Citation: Suggested Citation
Patel, Nikhil and Xia, Fan Dora, Offshore Markets Drive Trading of Emerging Market Currencies (December 8, 2019). BIS Quarterly Review, December 2019, Available at SSRN: https://ssrn.com/abstract=3502881
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