On the Effectiveness of Central Bank Intervention in the Foreign Exchange Market: The Case of Slovakia, 1999–2007
Ludovit Odor () and
William O. Riiska
Additional contact information
Juraj Zeman: National Bank of Slovakia
William O. Riiska: Hutchin Hill Capital
Comparative Economic Studies, 2018, vol. 60, issue 3, No 6, 442-474
Abstract Based on intraday high-frequency data, this paper investigates the effect of sterilized interventions on the Slovak koruna/euro exchange rate for different time windows during a period that coincides with Slovakia’s preparation for EU accession and euro adoption. Results confirm a significant relationship between intervention and exchange rate change. The maximum effect of intervention is reflected in the exchange rate change within a couple of hours, and the effect over longer time windows weakens only gradually. The initial impact of sale interventions is stronger than that of purchase interventions.
Keywords: Foreign exchange market intervention; Koruna/euro exchange rate; Monetary policy framework; ERM II participation; Slovakia; E44; E58; F31; G15 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1057/s41294-017-0039-z Abstract (text/html)
Access to full text is restricted to subscribers.
Working Paper: On the Effectiveness of Central Bank Intervention in the Foreign Exchange Market: The Case of Slovakia, 1999-2007 (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:compes:v:60:y:2018:i:3:d:10.1057_s41294-017-0039-z
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2
Access Statistics for this article
Comparative Economic Studies is currently edited by Nauro Campos
More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().