Foreign Exchange Interventions in Croatia and Turkey: Should We Give a Damn?

Balázs Égert and Maroje Lang ()

No wp755, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: This paper studies the impact of daily official foreign exchange interventions on the exchange rates of two EU candidate countries, namely Croatia and Turkey for the periods from 1996 to 2004 and from 2001 to 2004, respectively. Using the event study methodology and a variety of GARCH models reveals that both the Croatian and the Turkish central banks were in a position to influence, to some extent, the level of the exchange rate during the period studied. This lends support to the view that foreign exchange intervention may be effective to a limited extent in emerging market economies.

Keywords: central bank intervention; foreign exchange intervention; official interventions; foreign exchange market; effectiveness; exchange rate volatility; emerging economies; transition economies (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
Date: 2005-03-01
New Economics Papers: this item is included in nep-ifn, nep-mon and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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