Assessing the Effectiveness of Currency-Differentiated Tools: The Case of Reserve Requirements

This slide highlights the main findings of the working paper Assessing the effectiveness of currency-differentiated tools: The case of reserve requirements

This paper provides the first comprehensive analysis of benefits and side-effects of foreign-currency differentiated reserve requirements for a sample of 58 countries from 1999 to 2015. Departing from the existing literature on effectiveness which used binary variables to measure policy changes, the intensity of reserve requirement adjustments is captured by using the gap between foreign and local currency rates to isolate the impact of differentiation net of volume effects.

Find out more at: https://doi.org/10.1787/e979a657-en