The impact of FX and fixed income integration on global financial stability: A comprehensive analysis
1 Independent Researcher, Bonny Island, Nigeria.
2 Independent Researcher, Seattle, WA, USA.
3 Independent Researcher, NJ, USA.
4 College of Business, Texas A&M University-Commerce, USA.
Review
Comprehensive Research and Reviews in Science and Technology, 2024, 02(02), 083–091.
Article DOI: 10.57219/crrst.2024.2.2.0039
Publication history:
Received on 15 October 2024; revised on 20 November 2024; accepted on 23 November 2024
Abstract:
The integration of Foreign Exchange (FX) and Fixed Income markets has become a pivotal factor in shaping global financial stability. This paper explores the dynamics of these interconnected markets, analyzing their roles in enhancing liquidity, risk diversification, and economic resilience. While integration offers numerous benefits, such as improved market efficiency and capital allocation, it also introduces significant risks, including contagion effects and heightened systemic vulnerabilities. The study examines theoretical foundations, key interconnection mechanisms, and the global trends driving market convergence, such as technological advancements and policy shifts. Furthermore, the implications for policymakers, investors, and market participants are discussed, with recommendations for strengthening international cooperation, enhancing risk management frameworks, leveraging technology, and promoting financial inclusion. This comprehensive analysis underscores the need for adaptive strategies and collaborative efforts to maximize the benefits of integration while safeguarding financial stability amid evolving global challenges.
Keywords:
Foreign Exchange (FX); Fixed Income Markets; Financial Stability; Market Integration; Risk Diversification; Global Economic Policies
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0