Cover IMF Working Papers
Buy Book in Print
Foreign Exchange Risk Regulation: Issues for Industrial and Developing Countries
Author:
Mr. Philipp Hartmann null

Search for other papers by Mr. Philipp Hartmann in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 1994: Issue 141
Language:
English
Publication Date:
01 Dec 1994
DOI:
https://doi.org/10.5089/9781451928129.001
ISBN:
9781451928129
ISSN:
1018-5941
Pages:
54
Keywords:
WP; forex market; long position; single currency; capital ratio; short position; risk regulation; equity capital; deutsche mark; spot market; Tier 1; capital requirement; capital position; risk proposal; foreign exchange risk regulation; capital charge; Currencies; Currency markets; Foreign exchange transactions; Exchange rate risk; Global; Central and Eastern Europe; Baltics; Middle East; Eastern Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (3.4 MB) Download Epub
Capital adequacy regulations or quantity restrictions on bank portfolios put forward by the Basle Committee on Banking Supervision have virtually become an international standard of prudential regulation. Recent proposals aim at extending this approach to market risks, in particular to foreign exchange risk. The present paper provides a critical analysis of proposals to introduce foreign exchange position limits on a uniform cross-country basis, focusing on their effectiveness and their possible impact on the functioning of both mature and developing foreign exchange markets. Theoretical considerations are underpinned in the paper with descriptions of existing or proposed regulations, in a broad range of both industrial and developing countries. Experiences with the use of foreign exchange position limits in developing countries provide insight into their widespread use for other than prudential purposes, in particular to support exchange rate and exchange control policies.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund