The July 2022 Monthly Report presents results and use cases of distributional wealth accounts (DWA) for households in Germany and describes the evolution of the creditor structure of government debt in the euro area. It also analyses the factors influencing international portfolio flows and contains an article on the cross-border interoperability of central bank digital currency.

Implementing a minimum exchange rate regime by buying foreign currency eases monetary conditions domestically and may thus have a direct impact on the inflation rate. However, such foreign currency purchases involve a risky expansion of the central bank’s balance sheet total. A new model can now predict what expansion of the balance sheet a central bank must expect if it wishes to implement a minimum exchange rate in the foreign exchange market.