Abstract
This paper proposes a measure for the level of internationalization of a currency. It is based on the relative share of price discovery, termed the information share, in overnight offshore markets. I show that the overnight offshore markets play an increasingly important role in determining the KRW/USD exchange rate. The information share of the overnight offshore markets has increased from less than 10% in 1999-2000 to above 50% in 2011-2012. The variations in the overnight information share are consistent with variations in overnight market efficiency and investor learning.
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