In the 1970s, Germany and Japan maintained tight controls and regulatory restrictions to limit foreign holdings of their  13  Still now, capital controls in place in some emerging markets are believed to help explain the development of offshore markets in their currencies, as well as of certain financial derivative instruments, such as nondeliverable forward exchange rates.
14  Similar evidence is presented in BIS (2015). 15  With the exception of the countries participating in ERM II, the decision to use the euro as an anchor currency is a unilateral one and does not involve any commitment on the part of the ECB.