Market Volatility and Foreign Exchange Intervention in EMEs
Title | Market Volatility and Foreign Exchange Intervention in EMEs PDF eBook |
Author | Banco de Pagos Internacionales (Basilea, Suiza). Departamento Monetario y Económico |
Publisher | |
Pages | 361 |
Release | 2013 |
Genre | |
ISBN | 9789291979622 |
Market Volatility and Foreign Exchange Intervention in EMEs
Title | Market Volatility and Foreign Exchange Intervention in EMEs PDF eBook |
Author | |
Publisher | |
Pages | 361 |
Release | 2013 |
Genre | |
ISBN |
Market Volatility and Foreign Exchange Intervention in EMEs
Title | Market Volatility and Foreign Exchange Intervention in EMEs PDF eBook |
Author | |
Publisher | |
Pages | 361 |
Release | 2013 |
Genre | |
ISBN |
Market Volatility and Foreign Exchange Intervention in EMEs
Title | Market Volatility and Foreign Exchange Intervention in EMEs PDF eBook |
Author | Bank for International Settlements |
Publisher | |
Pages | 372 |
Release | 2014 |
Genre | |
ISBN |
Huge swings in capital fl ...
The Empirics of Foreign Exchange Intervention in Emerging Markets
Title | The Empirics of Foreign Exchange Intervention in Emerging Markets PDF eBook |
Author | Roberto Pereira Guimarães |
Publisher | International Monetary Fund |
Pages | 34 |
Release | 2004-07-01 |
Genre | Business & Economics |
ISBN | 1451854641 |
This paper analyzes the effects of intervention on the level and volatility of the exchange rate in Mexico and Turkey, two emerging countries that have floating exchange rate regimes. The paper finds mixed evidence on the effectiveness of intervention. In Mexico, foreign exchange sales have a small impact on the exchange rate level and raise short-term volatility, while in Turkey, intervention does not appear to affect the exchange rate level but reduces its shortterm volatility. In both cases, the findings are consistent with officially stated policy objectives, which aim to minimize the effect of intervention on the exchange rate, but cast doubt on claims that intervention is a useful tool for smoothing volatility. Although these findings cannot be generalized to other emerging markets, intervention's apparently limited effectiveness highlights the need for central banks to use their scarce foreign reserves selectively and parsimoniously.
Foreign Exchange Intervention
Title | Foreign Exchange Intervention PDF eBook |
Author | Gustavo Adler |
Publisher | International Monetary Fund |
Pages | 30 |
Release | 2011-07-01 |
Genre | Business & Economics |
ISBN | 1462301215 |
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. Qualitatively, it examines institutional aspects such as declared motives, instruments employed, the use of rules versus discretion, and the degree of transparency. Quantitatively, it assesses the effectiveness of sterilized interventions in influencing the exchange rate using a two-stage IV-panel data approach to overcome endogeneity bias. Results suggest that interventions slow the pace of appreciation, but the effects decrease rapidly with the degree of capital account openness. At the same time, interventions are more effective in the context of already ?overvalued' exchange rates.
The Exchange Rate, Real Economy and Financial Markets
Title | The Exchange Rate, Real Economy and Financial Markets PDF eBook |
Author | Blaise Gadanecz |
Publisher | |
Pages | 13 |
Release | 2014 |
Genre | |
ISBN |
In this paper we analyse the relationship between increased exchange rate flexibility and economic growth and its volatility in emerging market economies. We also investigate the implications of exchange rate flexibility for financial market development. We do not find a robust correlation between exchange rate flexibility and long-run growth, although exchange rate flexibility has generally been beneficial in smoothing EMEs' output volatility in the previous decade. There are also indications that increased exchange rate flexibility is associated with a reduction in vulnerabilities such as currency mismatches, though its impact on financial market development is less clear.Full publication: "http://ssrn.com/abstract=2420030" Market Volatility and Foreign Exchange Intervention in EMEs: What Has Changed?