To the extent that external liabilities are mainly in domestic currency, whereas external assets are denominated in foreign currency – as in the case of equity and foreign direct investment, and often also debt securities – issuers of international currencies tend to have a “long” position in foreign currency.
And the NGFS adds a triple layer of leverage: by pushing our now almost 80 member central banks and supervisors around the world into a Paris Agreement compatible exercise of their mandates. With great leverage comes great power and with great power comes great responsibility. We will continue to push as hard as we can on our triple lever.