International government debt denominated in local currency: recent developments in Latin America

Governments in Latin America have traditionally faced significant difficulties in issuing debt denominated in local currency in international markets. However, three countries in the region have recently issued this type of debt, perhaps signalling a permanent change in the manner in which Latin American borrowers tap international bond markets. Nonetheless, the degree to which issuing international debt in local currency complements the development of domestic debt markets remains to be seen.

JEL classification: E440, F340, G150, H630, O160.