Digitalni repozitorijum
Univerziteta u Beogradu
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International Liquidity and the Rapid Digitalization of the World Economy
Kovačević, Radovan
Abstract The global financial crisis of 2007-2009 as well as the COVID-19 pandemic have significantly impacted the growth of international liquidity in response to the slowdown in the growth of the global economy and the challenges of illiquidity. The current global progress of digitalisation in international business opens room for a further increase in international liquidity. This paper aims to analyse the trends of international liquidity in the context of increasing digitalisation. The paper analyses the phases of international liquidity since 2000, focusing on the currency structure using the global liquidity indicators of the Bank for International Settlements. Based on the results of our research, we have emphasised the declining role of the US dollar in international liquidity. In addition, the results of the study show that the swap lines between the US Federal Reserve and foreign central banks, which ensure the dollar's liquidity, are an important source of international liquidity. Advancing digitalisation is accelerating capital flows and creating opportunities to reduce the cost of cross-border transfers. In addition, most major central banks are considering the introduction of digital central bank money, electronic money and crypto-assets, such as global stablecoins. The rapid emergence of digital money may have a significant impact on international liquidity.
engleski
2024
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Keywords: Global liquidity, dollar, euro, Japanese yen, digital currency