Foreign Exchange Intervention in Developing and Transition Economies: Results of a Survey
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Based on evidence obtained from the IMF's 2001 Survey on Foreign Exchange Market Organization, the author argues that, for several reasons, some central banks in developing and transition economies may be able to conduct foreign exchange intervention more effectively than the central banks of developed countries issuing the major international currencies. First, these central banks do not always fully sterilize their foreign exchange interventions. In addition, they issue regulations and conduct their foreign exchange operations in a way that increases the central bank's information advantage and the size of their foreign exchange intervention relative to foreign exchange market turnover. Some of the central banks also use moral suasion to support their foreign exchange interventions.
Series:
Working Paper No. 2003/095
Subject:
Banking Currency markets Exchange rate arrangements Exchange rates Financial markets Foreign exchange Foreign exchange intervention
English
Publication Date:
May 1, 2003
ISBN/ISSN:
9781451851847/1018-5941
Stock No:
WPIEA0952003
Pages:
59
Please address any questions about this title to publications@imf.org