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Official Foreign Exchange Intervention
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Abstract

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.

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Author:
Mr. Jorge I Canales Kriljenko
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,
Mr. Cem Karacadag
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,
Roberto Guimarães-Filho
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Mr. Shogo Ishii
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Series:
Occasional Papers
Publisher:
International Monetary Fund
Language:
English
Publication Date:
02 Mar 2006
DOI:
https://doi.org/10.5089/9781589064218.084
ISBN:
9781589064218
ISSN:
0251-6365
Pages:
52
Keywords:
OP; intervention; central bank; order flow; exchange rate misalignment; intervention policy; intervention objective; movements to inflation; equilibrium exchange rate; Exchange rates; Currency markets; Foreign exchange intervention; Exchange rate arrangements; Eastern Europe; Global
Legal-disclaimer:
The views expressed in this book are those of the authors and should not be reported as or attributed to the International Monetary Fund, its Executive Board, or the governments of any of its member countries.
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