{
  "title": "Foreign Exchange Intervention in Inflation Targeters in Latin America",
  "publication": "Books, February 28, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/books/issues/2019/02/28/foreign-exchange-intervention-in-inflation-targeters-in-latin-america-46212",
  "canonical": "https://www.imf.org/en/publications/books/issues/2019/02/28/foreign-exchange-intervention-in-inflation-targeters-in-latin-america-46212",
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  "summary": "Foreign exchange intervention is widely used as a policy tool, particularly in emerging markets, but many facets of this tool remain limited, especially in the context of flexible exchange rate regimes.",
  "sections": [
    {
      "heading": "Summary and scope",
      "content": "- Edited volume reviewing detailed accounts from several Latin American countries’ central banks on foreign exchange intervention within flexible exchange rate and inflation-targeting regimes.\n- Publication date: February 28, 2019.\n- Pages: 320.\n- DOI: https://doi.org/10.5089/9781484375686.071\n- ISBN: 9781484375686"
    },
    {
      "heading": "Key findings",
      "content": "- Foreign exchange intervention is widely used as a policy tool, particularly in emerging markets, but many facets remain limited, especially under flexible exchange rate regimes.\n- Latin American experience is informative because some large countries adopted floating exchange rate regimes and inflation targeting while continuing to intervene in foreign exchange markets.\n- The book documents the effectiveness of intervention and emphasizes the role of foreign exchange intervention policy within inflation-targeting monetary frameworks.\n- Main lesson: In the context of inflation targeting, the region has had a considerable degree of success.\n- Transparency and a clear communication policy have been key to that success.\n- For economies that are not highly dollarized, rules-based intervention:\n  - helped contain financial instability,\n  - helped build international reserves,\n  - preserved inflation targets."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Transparency and clear communication should be central to intervention policy design.\n- Rules-based intervention can be effective in countries that are not highly dollarized for:\n  - containing financial instability,\n  - building international reserves,\n  - preserving inflation-targeting objectives.\n- The Latin American experience can inform other countries’ design and implementation of foreign exchange intervention policies within inflation-targeting frameworks."
    },
    {
      "heading": "Subjects and keywords (as provided)",
      "content": "- Subjects: Banking, Central banks, Currency markets, Exchange rate arrangements, Exchange rates, Financial markets, Foreign exchange, Foreign exchange intervention, International reserves\n- Keywords: BOOK, Caribbean, Central America, central bank, Colombian peso, Currency markets, dollar sale, exchange rate, Exchange rate arrangements, exchange rate volatility, Exchange rates, foreign exchange, foreign exchange intervention, Foreign exchange intervention, Global, International reserves, intervention, intervention policy, spot market\n\nForeign Exchange Intervention in Inflation Targeters in Latin America, Marcos Chamon; David J Hofman; Nicolas E Magud; Alejandro M. Werner, February 28, 2019.\n\n---\n\n\nSource: https://www.imf.org/en/publications/books/issues/2019/02/28/foreign-exchange-intervention-in-inflation-targeters-in-latin-america-46212"
    }
  ],
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    "Authors: Marcos Chamon, David J Hofman, Nicolas E Magud, Alejandro M. Werner",
    "Published: February 28, 2019",
    "Series: Books",
    "DOI: https://doi.org/10.5089/9781484375686.071",
    "Edited volume reviewing detailed accounts from several Latin American countries’ central banks on foreign exchange intervention within flexible exchange rate and inflation-targeting regimes.",
    "Publication date: February 28, 2019.",
    "Pages: 320.",
    "DOI: https://doi.org/10.5089/9781484375686.071",
    "ISBN: 9781484375686",
    "Foreign exchange intervention is widely used as a policy tool, particularly in emerging markets, but many facets remain limited, especially under flexible exchange rate regimes.",
    "Latin American experience is informative because some large countries adopted floating exchange rate regimes and inflation targeting while continuing to intervene in foreign exchange markets.",
    "The book documents the effectiveness of intervention and emphasizes the role of foreign exchange intervention policy within inflation-targeting monetary frameworks.",
    "Main lesson: In the context of inflation targeting, the region has had a considerable degree of success.",
    "Transparency and a clear communication policy have been key to that success.",
    "For economies that are not highly dollarized, rules-based intervention:",
    "Transparency and clear communication should be central to intervention policy design.",
    "Rules-based intervention can be effective in countries that are not highly dollarized for:",
    "The Latin American experience can inform other countries’ design and implementation of foreign exchange intervention policies within inflation-targeting frameworks.",
    "Subjects: Banking, Central banks, Currency markets, Exchange rate arrangements, Exchange rates, Financial markets, Foreign exchange, Foreign exchange intervention, International reserves",
    "Keywords: BOOK, Caribbean, Central America, central bank, Colombian peso, Currency markets, dollar sale, exchange rate, Exchange rate arrangements, exchange rate volatility, Exchange rates, foreign exchange, foreign exchange intervention, Foreign exchange intervention, Global, International reserves, intervention, intervention policy, spot market"
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