Plausibly Exogenous [1437] - OTC (01/07/2024)
LHS Variable
Non-financial sector
RHS Variable
Regulation in the OTC market
Source of Exogenous Variation
In 2011, the Brazilian government taxed short positions in FX derivatives to reduce the carry trade, which was causing the local currency to appreciate
- Araujo and Leao (2016), “OTC derivatives: Impacts of regulatory changes in the non-financial sector”