Foreign Exchange Intervention in Emerging Markets: A Survey of Empirical Studies

Lukas Menkhoff

Hannover Economic Papers (HEP) from Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät

Abstract: Nowadays foreign exchange interventions occur in emerging market economies whereas empirical studies on interventions mainly refer to advanced economies. However, interventions in emerging markets are different from those in advanced economies: they occur "regularly" and central banks have considerable leverage, derived from relatively high reserves, some non-sterilization, the central bank's information advantage and capital controls. Consequently, these interventions often successfully impact the level and volatility of exchange rates. Nevertheless, more research on interventions in emerging markets is needed analyzing the influence of heterogeneous institutional circumstances, examining the role of central bank communication and using high-frequency data.

Keywords: foreign exchange; central bank intervention; emerging markets; transmission channels (search for similar items in EconPapers)
JEL-codes: E58 F31 O23 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2012-04
New Economics Papers: this item is included in nep-cba and nep-ifn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Journal Article: Foreign Exchange Intervention in Emerging Markets: A Survey of Empirical Studies (2013)
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