The Efficacy of Foreign Exchange Market Intervention in Malawi

Kisu Simwaka and Leslie Kwacha Mkandawire
Additional contact information
Leslie Kwacha Mkandawire: Reserve Bank of Malawi, P.O. Box 30063, Lilongwe, Malawi

Macroeconomics from University Library of Munich, Germany

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)
Pages: 16 pages
Date: 2004-07-19
Note: Type of Document - doc; pages: 16
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0407/0407022.pdf (application/pdf)
https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0407/0407022.ps.gz (application/postscript)
https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0407/0407022.doc.gz (application/msword)

Related works:
Working Paper: The efficacy of foreign exchange market intervention in Malawi (2008)
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:wpa:wuwpma:0407022

Access Statistics for this paper

More papers in Macroeconomics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).