Local currency bond markets (LCBMs) play an important role in improving the resilience of the domestic economy and financial systems.
In November 2011, the G20 endorsed an action plan to support the development of LCBMs. International institutions—the IMF, the World Bank, the EBRD, and the OECD—were asked to draw on their experience to develop a diagnostic framework to identify general preconditions, key components, and constraints for successful LCBM development.
The diagnostic framework provides a tool for analysing the state of development and efficiency of local currency bond markets in emerging and developing economies. Such a tool can provide the basis for designing a strategy for market development and deepening with appropriate sequencing of policy action and associated delivery of technical assistance where needed.
DOCUMENTS AND LINKS
News release 04/10/2013: Developing Local Currency Bond Markets: A New Diagnostic Framework
G20 Saint Petersburg Summit Declaration, 6 September 2013
More about OECD and the G20