We firmly believe China has no intention to devalue the RMB. China’s last attempt to devalue – in 2015 – resulted in capital flight, … tightening fi...

This week’s Digital Finance Developments looks at emerging efforts to resolve contradictions or eliminate gaps between AI regulations across jurisdictions through international coordination efforts at the G7, G20, and Global Partnership on AI.

In a higher-rate environment, the global debt stock rose by $10 trillion to a new record high of $307 trillion in H1 2023. 

Weak China data have morphed into expectations for RMB devaluation. Such expectations run counter to China’s recent management of the RMB, … where d...

Over the past 15 years, EM government debt levels have soared, with domestic debt accounting for much of the increase. Debt issued under foreign law now constitutes only about 10% of total borrowing by EM governments.

Portfolio flows to EM stood at -$15.5 bn in June. Equity and debt flows were -$21.5 bn and $6.0 bn. Chinese equities posted $14.9 bn in outflows

This week’s Digital Finance Developments takes stock of Central Bank Digital Currency (CBDC) pilot projects and considers the design choices presented by these efforts, adding further nuance to consideration of CBDCs.

Emerging market sovereign borrowers have raised some $85 billion from international debt markets to date this year, up from over $60 billion during the same period last year. However, this pace is still significantly weaker than it was pre-pandemic ($150 billion per year on average from 2016-2019).

We look into the issue of exchange rate misalignment in Egypt. We find that the current real effective exchange rate is overvalued by around 10%. The results support our view that Egypt's currency must be allowed to float, and that this must also be accompanied by tighter structural policies.

Since last month’s primary vote, Argentina is debating dollarization, … which – on a spectrum – is really just an extreme version of a Dollar peg. R...

The September 2023 U.S. Regulatory Update covers the latest federal agency announcements, Congressional news, and senior regulatory appointments, including Basel III Capital Proposals and new rules on cyber incident disclosures.

August's edition of the Digital Finance Download. A monthly update of significant developments in digital finance around the globe.

The “Dominant Currency Paradigm” gave devaluations a bad name, … on the grounds that Dollar invoicing makes devaluations less effective. A lot of th...