02021cas a2200301 a 4500 AALejournalIMF022683 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400209185 1018-5941 BD-DhAAL BD-DhAAL Popescu, Adina. Cross-Border Central Bank Digital Currencies, Bank Runs and Capital Flows Volatility / Adina Popescu. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (43 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 Central banks around the world are increasingly exploring central bank digital currencies (CBDCs). This paper investigates the possible impacts of cross-border CBDCs on capital flows and financial stability in a simple open economy extension of a classical model of bank runs, augmented with the presence of a credible foreign central bank, which issues an account-based interest bearing CBDC available to nonresidents. The paper finds that the presence of a foreign CBDC which acts as an international safe asset may increase the risk of financial disintermediation in the domestic banking sector, which can be accompanied by higher and more volatile capital flows. Mode of access: Internet Banks imf Central Banks and Their Policies imf Depository Institutions imf International Relations and International Political Economy imf Monetary Policy, Central Banking, and the Supply of Money imf IMF Working Papers; Working Paper ; No. 2022/083 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=083 IMF e-Library