Cover IMF Working Papers
Foreign Exchange Intervention in Developing and Transition Economies: Results of a Survey
Author:
Mr. Jorge I Canales Kriljenko
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Series:
IMF Working Papers
Volume/Issue:
Volume 2003: Issue 095
Language:
English
Publication Date:
01 May 2003
DOI:
https://doi.org/10.5089/9781451851847.001
ISBN:
9781451851847
ISSN:
1018-5941
Pages:
59
Keywords:
WP; central bank intervention; central bank; transition economy; information advantage; economy; Foreign exchange intervention; foreign exchange market microstructure; foreign exchange net open positions; foreign exchange regulation; intervention operation; foreign exchange position; operating practice; foreign exchange market turnover; exchange rate volatility; intramarginal foreign exchange intervention; Currency markets; Exchange rates; Exchange rate arrangements; Eastern Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Based on evidence obtained from the IMF's 2001 Survey on Foreign Exchange Market Organization, the author argues that, for several reasons, some central banks in developing and transition economies may be able to conduct foreign exchange intervention more effectively than the central banks of developed countries issuing the major international currencies. First, these central banks do not always fully sterilize their foreign exchange interventions. In addition, they issue regulations and conduct their foreign exchange operations in a way that increases the central bank's information advantage and the size of their foreign exchange intervention relative to foreign exchange market turnover. Some of the central banks also use moral suasion to support their foreign exchange interventions.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2003: Issue 095