Details

Subject(s)

• Foreign exchange administration—Mexico [Browse]
• Banks and banking, Central—Mexico [Browse]
• Foreign exchange administratio—Turkey [Browse]
• Banks and banking, Central—Turkey [Browse]

Related name

• Guimarães-Filho, Roberto [Browse]

Series

• IMF Working Papers; Working Paper ; No. 2004/123 [More in this series]
• IMF Working Papers

Summary note

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.

Notes

Description based upon print version of record.

Bibliographic references

Includes bibliographical references.

Source of description

Description based on online resource; title from PDF cover (ebrary, viewed July 2, 2015).

Language note

English

Contents

""Contents""; ""I. INTRODUCTION""; ""II. EMPIRICAL ANALYSIS AND EVIDENCE ON INTERVENTION""; ""III. INTERVENTION IN MEXICO AND TURKEY: THE POLICY CONTEXT""; ""IV. THE EFFECTIVENESS OF FOREIGN EXCHANGE INTERVENTION""; ""V. CONCLUSION""; ""REFERENCES""

ISBN

• 9786613803542
• 9781462385225
• 1462385222
• 9781452714912
• 1452714916
• 9781282110656
• 1282110659
• 9781451899948
• 1451899947

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