01890cas a2200241 a 4500 AALejournalIMF005233 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451870381 1018-5941 BD-DhAAL BD-DhAAL Wiegand, Johannes. Bank Recycling of Petro Dollars to Emerging Market Economies During the Current Oil Price Boom / Johannes Wiegand. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students High oil prices have once again led to large external surpluses of oil exporting countries, similar to the 1970s and 1980s. This paper analyzes the extent to which (i) oil exporters use bank deposits to invest these surpluses, and (ii) banks are lending on these funds to emerging market economies. Bank recycling of petro dollars to emerging market economies is found to be almost as important as in the 1970s and 1980s, even though during the current boom, petro dollar bank flows tend to originate in countries like Russia, Libya, or Nigeria rather than in the Middle East. As one consequence, a fall in oil prices could yet again disrupt financing flows to emerging economies. Especially at risk could be countries that rely heavily on bank loans to finance external deficits, many of them in Emerging Europe. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2008/180 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/180/001.2008.issue-180-en.xml IMF e-Library