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International finance through the lens of BIS statistics: the global reach of currencies

Author

Listed:
  • Patrick McGuire
  • Goetz von Peter
  • Sonya Zhu

Abstract

The use of key currencies in international finance far outstrips the issuing jurisdictions' share in global economic activity. The US dollar dominates globally, while the euro, yen and pound sterling have a smaller international footprint. The reach of key currencies becomes apparent only in statistics with a currency dimension. The BIS statistics on international banking, bonds and derivatives markets have had a currency dimension since their inception. This dimension is essential for assessing exposure to currency risk, squeezes in funding markets and vulnerabilities associated with foreign exchange markets.

Suggested Citation

  • Patrick McGuire & Goetz von Peter & Sonya Zhu, 2024. "International finance through the lens of BIS statistics: the global reach of currencies," BIS Quarterly Review, Bank for International Settlements, June.
    • Handle: RePEc:bis:bisqtr:2406b
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    References listed on IDEAS

    as
    1. Hélène Rey, 2001. "International Trade and Currency Exchange," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 443-464.
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    6. Patrick McGuire & Goetz von Peter, 2012. "The Dollar Shortage in Global Banking and the International Policy Response," International Finance, Wiley Blackwell, vol. 15(2), pages 155-178, June.
    7. Claudio Borio & Robert Neil McCauley & Patrick McGuire, 2017. "FX swaps and forwards: missing global debt?," BIS Quarterly Review, Bank for International Settlements, September.
    8. Patrick McGuire & Goetz von Peter & Sonya Zhu, 2024. "International finance through the lens of BIS statistics: residence vs nationality," BIS Quarterly Review, Bank for International Settlements, March.
    9. Robert N McCauley & Patrick McGuire & Philip Wooldridge, 2021. "Seven decades of international banking," BIS Quarterly Review, Bank for International Settlements, September.
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    Cited by:

    1. Nihad Aliyev & Matteo Aquilina & Khaladdin Rzayev & Sonya Zhu, "undated". "Through stormy seas: how fragile is liquidity across asset classes and time?," BIS Working Papers 1229, Bank for International Settlements.
    2. Nissinen, Juuso, 2024. "Cross-country spillover effects of interest rate and credit constraint policies," Finance Research Letters, Elsevier, vol. 66(C).

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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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