The Efficacy of Foreign Exchange Market Intervention in Malawi

Kisukyabo Simwaka and Leslie Kwacha Mkandawire
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Kisukyabo Simwaka: Reserve bank of Malawi, P.O. Box 30063, Lilongwe, Malawi
Leslie Kwacha Mkandawire: Reserve Bank of Malawi, P.O. Box 30063, Lilongwe, Malawi
Authors registered in the RePEc Author Service: Kisu Simwaka and Kisu Simwaka ()

Macroeconomics from EconWPA

Abstract: The Malawi Kwacha was floated in February 1994. However, the Reserve Bank of Malawi has actively intervened in the foreign exchange market. Both the levels and volatility of the exchange rate have changed so much between January 1995 and December 2003, perhaps connoting that the market is not working so well or else a result of impromptu management. Using the daily exchange rate and official intervention data from January 1995 to December 2003 the paper is intended to examine the effects the Reserve Bank of Malawi foreign exchange operations have had on the level and volatility of the Malawi Kwacha exchange rate. The direct effects on the level of exchange rate will be assessed using an event study approach. Policy intervention effects on the exchange rate volatility shall be examined over the period of floatation of the exchange rate..

Keywords: exchange rate volatility; market intervention (search for similar items in EconPapers)
JEL-codes: E (search for similar items in EconPapers)
Date: 2004-07-19
Note: Type of Document - doc; pages: 16
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Related works:
Working Paper: The efficacy of foreign exchange market intervention in Malawi (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpma:0407022

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