Currency Mismatches and Vulnerability to Exchange Rate Shocks : Nonfinancial Firms in Colombia /

After building up foreign currency denominated (FC) liabilities over several years, Colombian firms might be vulnerable to a shift in external conditions. We undertake three empirical exercises to better understand these vulnerabilities. First, we identify the determinants of FC borrowing. Second, w...

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Detalles Bibliográficos
Autor Principal: Barajas, Adolfo
Outros autores: Camilo Medellin, Juan, Restrepo, Sergio, Steiner, Roberto
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2017.
Series:IMF Working Papers; Working Paper ; No. 2017/263
Acceso en liña:Full text available on IMF
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100 1 |a Barajas, Adolfo. 
245 1 0 |a Currency Mismatches and Vulnerability to Exchange Rate Shocks :   |b Nonfinancial Firms in Colombia /  |c Adolfo Barajas, Sergio Restrepo, Roberto Steiner, Juan Camilo Medellin. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2017. 
300 |a 1 online resource (41 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a After building up foreign currency denominated (FC) liabilities over several years, Colombian firms might be vulnerable to a shift in external conditions. We undertake three empirical exercises to better understand these vulnerabilities. First, we identify the determinants of FC borrowing. Second, we investigate the implications for real activity, finding a balance sheet effect that transmits exchange rate fluctuations to investment and is asymmetric, much stronger for depreciations than for appreciations. Finally, we find that foreign exchange derivatives are not used solely for hedging, due in part to monetary authority intervention to smooth exchange rate volatility. However, a full explanation remains open for future research. 
538 |a Mode of access: Internet 
700 1 |a Camilo Medellin, Juan. 
700 1 |a Restrepo, Sergio. 
700 1 |a Steiner, Roberto. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2017/263 
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