Report
External debt offered and demanded
The net external debt offered is the amount of net external debt accumulated by a country that is indebted to the rest of the world. The net external debt demanded is the net external debt of a country that investors would like to hold. If the net external debt offered is higher than the net external debt demanded, the country’s interest rates rise and its exchange rate depreciates. Conversely, if the net external debt demanded is higher than the net external debt offered, the country’s interest rates remain low and its exchange rate appreciates. Among large countries, those with a large net foreign debt in relation to their GDP are the United States, Spain, Brazil and Vietnam. We see that the net external debt offered is probably lower than the net external debt demanded in the United States and Spain, while it is higher in Brazil and Vietnam.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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