Why do Central Banks intervene secretly? preliminary evidence of the BoJ

Michel Beine and Oscar Bernal

No in, DULBEA Working Papers from ULB -- Universite Libre de Bruxelles

Abstract: This paper empirically investigates the main determinants of secret interventions in the foreign exchange (FX) market. Using the recent experience of the Bank of Japan, we estimate a model that explains the share of secret to reported interventions in the FX market. Two sets of determinants are clearly identified: the first is related to the probability of detection of the central bank orders by market participants; the second, to the central bank’s internal decision to opt for secrecy. Our estimations support the arguments of current microstructure theories that rationalize the use of secret interventions.

Keywords: Central Bank Interventions; Exchange Rates Market; Secrecy Puzzle. (search for similar items in EconPapers)
JEL-codes: E58 F31 G15 (search for similar items in EconPapers)
Date: 2005-03
New Economics Papers: this item is included in nep-fin, nep-fmk, nep-ifn, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Published by: DULBEA - Université Libre de Bruxelles, Department of Applied Economics

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/10489/1/mb-0042.pdf mb-0042 (application/pdf)

Related works:
Working Paper: Why do Central Banks intervene secretly ?preliminary evidence of the BoJ (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dul:wpaper:05-09rs

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... ulb.ac.be:2013/10489

Access Statistics for this paper

More papers in DULBEA Working Papers from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().