Rogelio Mercado, Senior Economist at the SEACEN Centre, has published a co-authored paper entitled: "The Currency Composition of International Portfolio Assets" at the Journal of International Money and Finance. A working paper version was released as SEACEN WP1/2019. Read more
The paper shows the following:
• Currency bias towards holdings of US dollar and Euro denominated portfolio assets;
• An increasing willingness of investors to hold assets denominated in local currencies in recent years;
• Varying significance of (i) economic ties, (ii) macro-financial vulnerabilities, and (iii) membership in common currency area, on portfolio asset holdings denominated in major currencies.