Dossier
currency runs
Coverage of currency runs in the Nexus archive.
- Dollar stablecoins could improve FX access but amplify currency runs: IMF paper
An IMF working paper highlights that dollar stablecoins may enhance access to foreign currency but could also facilitate coordinated exits from local currencies during severe exchange-rate stress. The paper warns of potential risks associated with dollar stablecoins amplifying currency runs in periods of financial instability.