Official Foreign Exchange Intervention

By Jorge I Canales Kriljenko, Cem Karacadag, Roberto Guimarães-Filho, Shogo Ishii

March 2, 2006

Preview Citation

Format: Chicago

Jorge I Canales Kriljenko, Cem Karacadag, Roberto Guimarães-Filho, and Shogo Ishii. Official Foreign Exchange Intervention, (USA: International Monetary Fund, 2006) accessed November 8, 2024

Summary

Despite increasing exchange rate flexibility, central banks in emerging markets still intervene in their foreign exchange markets for several reasons. In doing so, they face many operational questions, including on the degree of transparency and the choice of markets and counterparties. This paper identifies elements of best practice in official foreign exchange intervention, presents survey evidence on intervention practices in developing countries, and assesses the effectiveness of intervention in Mexico and Turkey.

Subject: Banking, Currency markets, Exchange rate arrangements, Exchange rates, Financial markets, Foreign exchange, Foreign exchange intervention

Keywords: Central bank, Currency markets, Eastern Europe, Equilibrium exchange rate, Exchange rate arrangements, Exchange rate misalignment, Exchange rates, Foreign exchange intervention, Global, Intervention, Intervention objective, Intervention policy, Movements to inflation, OP, Order flow

Publication Details

Pages:

52
Volume:

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DOI:

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Issue:

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Series:

Occasional Paper No. 2006/001
Stock No:

S249EA
ISBN:

9781589064218
ISSN:

0251-6365

Supplemental Resources

Link to Abstract
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