Dominant Currencies and External Adjustment


  • IMF Staff Discussion Notes


  • The extensive use of the US dollar when firms set prices for international trade (dubbed dominant currency pricing) and in their funding (dominant currency financing) has come to the forefront of policy debate, raising questions about how exchange rates work and the benefits of exchange rate flexibility. This Staff Discussion Note documents these features of international trade and finance and explores their implications for how exchange rates can help external rebalancing and buffer macroeconomic shocks.

fecha de publicación

  • 2020

Líneas de investigación

  • Colombian peso
  • Currencies
  • Depreciation
  • Exchange rates
  • Exports
  • Global
  • Imports
  • SDN
  • currency financing
  • currency pricing
  • exchange rate
  • expenditure switching
  • external adjustment
  • financing currency
  • invoicing currency
  • invoicing data
  • trade invoicing
  • trade pricing


  • 2020/005