Foreign Exchange Intervention in Developing and Transition Economies: Results of a Survey
By J. Kriljenko. Social Science Research Network, 2003
121 citations recorded by the source corpus.
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.
Subfields: Development, Finance
View Paper: https://www.semanticscholar.org/paper/e975bbd370213158a349d766f4d87b0a9d56514b
Citations in the corpus
- Modeling Sterilized Interventions and Balance Sheet Effects of Monetary Policy in a New-Keynesian Framework (2013, unknown): “Beyond this evidence, we give some weight to the views of many practitioners, particularly in emerging markets and developing countries, that FX interventions can be effective (Neely 2011; BIS 2005); see also Canales-Kriljenko (2003).”
- A Theory of Foreign Exchange Interventions (2020, unknown): “In other related work, Chang and Velasco (2016) build a model with borrowing constraints on the financial sector and show that foreign exchange interventions may be useful when those contraints are binding.”
- Foreign exchange interventions under inflation targeting: the Czech Experience (2006, unknown): “As reported by Canales-Kriljenko (2003), interventions volumes are published only by 25 percent of all central banks that responded to a survey’s questions concerning the transparency of their interventions policy.”