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Currency Mismatch: New Database and Indicators for Latin America and the Caribbean

Author

Listed:
  • Martín Tobal

    (Centro de Estudios Monetarios Latinoamericanos)

Abstract
I construct a database on currency mismatch in the private banking sector that offers several advantages over existing data sources. The data are broken down by currency and, therefore, are better suited for calculating currency mismatches than the data based on the residence principle that are used in the literature. The data are comparable at the highest possible level across countries because the collection process is based on accounting manuals. The database is suitable for policy analysis and cross-country comparative studies since the data are collected quarterly, cover a wide range of economies and yield straight-forward measures of the success in implementing prudential policies. Employing the two indicators that I constructed, I show that the degree of currency mismatch differs across exchange rate regimes and is lower in countries that follow de-dollarization policies. I also demonstrate that the banking sector took short foreign currency positions in Latin America and the Caribbean for the first time in two decades beginning in the late 2000s.

Suggested Citation

  • Martín Tobal, 2013. "Currency Mismatch: New Database and Indicators for Latin America and the Caribbean," Documentos de Investigación - Research Papers 12, CEMLA.
    • Handle: RePEc:cml:docinv:12
    as

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    References listed on IDEAS

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    Cited by:

    1. Byström, Hans, 2017. "The currency composition of firms' balance sheets, asset value correlations, and capital requirements," Global Finance Journal, Elsevier, vol. 34(C), pages 89-99.
    2. Martín Tobal, 2014. "Prudential Regulation, Currency Mismatches and Exchange Rate Regimes in Latin America and the Caribbean," Documentos de Investigación - Research Papers 17, CEMLA.
    3. Frache, Serafín & García-Cicco, Javier & Ponce, Jorge, 2023. "Countercyclical prudential tools in an estimated DSGE model," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 4(3).
    4. Hari Venkatesh & Gourishankar S. Hiremath, 2021. "The resurgence of currency mismatches: Emerging market economies are not out of the woods yet?," International Economics and Economic Policy, Springer, vol. 18(4), pages 721-742, October.
    5. Byström, Hans, 2016. "The Currency Composition of Firms' Balance Sheets and its Effect on Asset Value Correlations and Capital Requirements," Working Papers 2016:1, Lund University, Department of Economics.
    6. Pagliacci, Carolina, 2014. "Latin American Performance to External Shocks: What Has Really Been Sweat?," MPRA Paper 57816, University Library of Munich, Germany.
    7. Tobal Martín & Yslas Renato, 2016. "Two Models of FX Market Interventions: The Cases of Brazil and Mexico," Working Papers 2016-14, Banco de México.
    8. David Amiel & Paul-Adrien Hyppolite, 2015. "Is There An Easy Way Out? Private Marketable Debt And Its Implications For A Euro Breakup: The Case Of France," Working Papers hal-01117019, HAL.
    9. Hari Venkatesh & Gourishankar S Hiremath, 2020. "Currency Mismatches In Emerging Market Economies: Is Winter Coming?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 23(1), pages 25-54, April.
    10. Michael Chui & Emese Kuruc & Philip Turner, 2016. "A new dimension to currency mismatches in the emerging markets - non-financial companies," BIS Working Papers 550, Bank for International Settlements.
    11. Tobal Martín, 2017. "Prudential Regulation, Currency Mismatches and Exchange Rates in Latin America and the Caribbean," Working Papers 2017-21, Banco de México.

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    More about this item

    Keywords

    currenyc mismatch; partial dollarization; financial stability.;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General

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