{
  "title": "Foreign Exchange Intervention: A Shield Against Appreciation Winds?",
  "publication": "IMF Working Papers, July 1, 2011",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/foreign-exchange-intervention-a-shield-against-appreciation-winds-25040",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/foreign-exchange-intervention-a-shield-against-appreciation-winds-25040",
  "overlayPath": "/en/publications/wp/issues/2016/12/31/foreign-exchange-intervention-a-shield-against-appreciation-winds-25040/index.md",
  "summary": "This paper examines foreign exchange intervention practices and their effectiveness using a new qualitative and quantitative database for a panel of 15 economies covering 2004 - 10, with special focus on Latin America.",
  "sections": [
    {
      "heading": "Scope and data",
      "content": "- Panel of 15 economies covering 2004 - 10, with special focus on Latin America.\n- Sample and materials include a new qualitative and quantitative database on foreign exchange intervention practices.\n- Paper length: 29 pages.\n- Series: Working Paper No. 2011/165, Volume: 2011, Issue: 165.\n- DOI: https://doi.org/10.5089/9781462301218.001\n- ISBN: 9781462301218\n- ISSN: 1018-5941"
    },
    {
      "heading": "Research questions and methodology",
      "content": "- Qualitative assessment:\n  - Institutional aspects examined: declared motives, instruments employed, the use of rules versus discretion, and the degree of transparency.\n- Quantitative assessment:\n  - Focus on the effectiveness of sterilized interventions in influencing the exchange rate.\n  - Empirical strategy: two-stage IV-panel data approach designed to overcome endogeneity bias."
    },
    {
      "heading": "Key findings",
      "content": "- Interventions slow the pace of appreciation.\n- The effects of interventions decrease rapidly with the degree of capital account openness.\n- Interventions are more effective in the context of already “overvalued” exchange rates."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject areas: Banking, Currencies, Currency markets, Exchange rate assessments, Exchange rates, Financial markets, Foreign exchange, Money.\n- Keywords include: appreciation rate, Asia and Pacific, Currencies, currency appreciation, Currency markets, Exchange rate assessments, exchange rate volatility, exchange rates, Foreign exchange intervention, FX intervention, FX market, Global, IMF staff calculation, intervention data, reaction function, sterilization, U.S. dollar, WP."
    },
    {
      "heading": "Authorship and publication",
      "content": "- By Gustavo Adler, Camilo E Tovar Mora\n- Date: July 1, 2011\n\nSource: IMF Working Papers No. 2011/165 (Gustavo Adler and Camilo E Tovar Mora, July 1, 2011).\n\n---\n\n Content in this bundle\n\n- Wp11165\n  - Wp11165 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp11165 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/foreign-exchange-intervention-a-shield-against-appreciation-winds-25040"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/31/foreign-exchange-intervention-a-shield-against-appreciation-winds-25040/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/foreign-exchange-intervention-a-shield-against-appreciation-winds-25040/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/31/foreign-exchange-intervention-a-shield-against-appreciation-winds-25040/bundle-manifest.json)",
    "Authors: Gustavo Adler, Camilo E Tovar Mora",
    "Published: July 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781462301218.001",
    "Panel of 15 economies covering 2004 - 10, with special focus on Latin America.",
    "Sample and materials include a new qualitative and quantitative database on foreign exchange intervention practices.",
    "Paper length: 29 pages.",
    "Series: Working Paper No. 2011/165, Volume: 2011, Issue: 165.",
    "DOI: https://doi.org/10.5089/9781462301218.001",
    "ISBN: 9781462301218",
    "ISSN: 1018-5941",
    "Qualitative assessment:",
    "Quantitative assessment:",
    "Interventions slow the pace of appreciation.",
    "The effects of interventions decrease rapidly with the degree of capital account openness.",
    "Interventions are more effective in the context of already “overvalued” exchange rates.",
    "Subject areas: Banking, Currencies, Currency markets, Exchange rate assessments, Exchange rates, Financial markets, Foreign exchange, Money.",
    "Keywords include: appreciation rate, Asia and Pacific, Currencies, currency appreciation, Currency markets, Exchange rate assessments, exchange rate volatility, exchange rates, Foreign exchange intervention, FX intervention, FX market, Global, IMF staff calculation, intervention data, reaction function, sterilization, U.S. dollar, WP.",
    "By Gustavo Adler, Camilo E Tovar Mora",
    "Date: July 1, 2011",
    "**Wp11165**"
  ],
  "related": [
    {
      "title": "Wp11165",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2011/_wp11165.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2011/_wp11165.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2011/_wp11165.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/31/foreign-exchange-intervention-a-shield-against-appreciation-winds-25040/index.md",
    "json": "/en/publications/wp/issues/2016/12/31/foreign-exchange-intervention-a-shield-against-appreciation-winds-25040/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/31/foreign-exchange-intervention-a-shield-against-appreciation-winds-25040/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T14:39:07.461Z"
}