Limits to Foreign Exchange Net Open Positions and Capital Requirements in Emerging Economies


  • Documentos CEDE


  • Many emerging economies have regulatory limits on foreign exchange rates net open positions of banks. We show that such limits leave the capital adequacy ratios of banks with investments in foreign subsidiaries more exposed to exchange rate fluctuations. We discuss alternative policies for overcoming this trade-off.

fecha de publicación

  • 2018-01

Líneas de investigación

  • Capital Requirements
  • Foreign Exchange Open Positions


  • 15995