The Use of Foreign Exchange Swaps by Central Banks: A Survey
August 1, 1993
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Summary
The paper discussed the use of foreign exchange swaps by central banks. Such use has aimed at affecting domestic liquidity, managing foreign exchange reserves, and stimulating domestic financial markets. It discusses these different uses and present evidence for a selected group of countries. The paper cautions about the use of foreign exchange swaps to defend a particular exchange rate at a time when foreign exchange reserves are under pressure. It notes, finally, that use of foreign exchange swaps by central banks has been losing importance.
Subject: Banking, Currencies, Currency markets, Currency swaps, Exchange rates, Financial markets, Foreign exchange, Money
Keywords: Africa, central bank loss, central bank need, Currencies, currency, Currency markets, Currency swaps, dollar, Exchange rates, Fed issues dollar, forward market, Global, Kuwaiti dinar, market, profit and loss account, swap, swap facility, swap operation, swap transaction, Turkish lira, U.S. dollar, U.S. dollar swap facility, WP
Pages:
30
Volume:
1993
DOI:
Issue:
064
Series:
Working Paper No. 1993/064
Stock No:
WPIEA0641993
ISBN:
9781451848489
ISSN:
1018-5941
Notes
Also published in Staff Papers, Vol. 41, No. 1, March 1994.
