Unveiling the Effects of Foreign Exchange Intervention : A Panel Approach /
We study the effect of foreign exchange intervention on the exchange rate relying on an instrumental-variables panel approach. We find robust evidence that intervention affects the level of the exchange rate in an economically meaningful way. A purchase of foreign currency of 1 percentage point of G...
|a Unveiling the Effects of Foreign Exchange Intervention :
|b A Panel Approach /
|c Gustavo Adler, Noemie Lisack, Rui Mano.
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|a Washington, D.C. :
|b International Monetary Fund,
|c 2015.
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|a 1 online resource (42 pages)
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|a IMF Working Papers
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|a <strong>Off-Campus Access:</strong> No User ID or Password Required
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|a <strong>On-Campus Access:</strong> No User ID or Password Required
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|a Electronic access restricted to authorized BRAC University faculty, staff and students
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|a We study the effect of foreign exchange intervention on the exchange rate relying on an instrumental-variables panel approach. We find robust evidence that intervention affects the level of the exchange rate in an economically meaningful way. A purchase of foreign currency of 1 percentage point of GDP causes a depreciation of the nominal and real exchange rates in the ranges of [1.7-2.0] percent and [1.4-1.7] percent respectively. The effects are found to be quite persistent. The paper also explores possible asymmetric effects, and whether effectiveness depends on the depth of domestic financial markets.
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|a Mode of access: Internet
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|a Lisack, Noemie.
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|a Mano, Rui.
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|a IMF Working Papers; Working Paper ;
|v No. 2015/130
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|z Full text available on IMF
|u http://elibrary.imf.org/view/journals/001/2015/130/001.2015.issue-130-en.xml
|z IMF e-Library