Abstract
Firms in small open economies carry foreign-exchange exposure through imports, debt and pricing, but rarely measure it in one place. This paper proposes a practical exposure measure for non-bank firms and links it to a market-wide liquidity pressure indicator.
Key points
- Separates transaction, balance-sheet and economic exposure for firm-level measurement.
- Introduces the FX Liquidity Pressure Indicator (ALG-FX-001) as a market-level complement.
- Discusses data requirements for treasury teams.
Cite this working paper
Algocence Research Desk (2026). FX Exposure in Small Open Economies: Measurement for Non-Bank Firms. Algocence Working Paper 2026-02. Ocho Rios, Jamaica: Algocence.