On Central Bank Interventions in the Mexican Peso/dollar Foreign Exchange Market PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download On Central Bank Interventions in the Mexican Peso/dollar Foreign Exchange Market PDF full book. Access full book title On Central Bank Interventions in the Mexican Peso/dollar Foreign Exchange Market by Santiago García-Verdú. Download full books in PDF and EPUB format.
Author: Santiago García-Verdú
Publisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 38
Get Book Here
Book Description
Author: Santiago García-Verdú
Publisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 38
Get Book Here
Book Description
Author: Santiago García-Verdú
Publisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 0
Get Book Here
Book Description
Author: Santiago García-Verdú
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
Author: Roberto Pereira Guimarães
Publisher: International Monetary Fund
ISBN: 1451854641
Category : Business & Economics
Languages : en
Pages : 34
Get Book Here
Book Description
This paper analyzes the effects of intervention on the level and volatility of the exchange rate in Mexico and Turkey, two emerging countries that have floating exchange rate regimes. The paper finds mixed evidence on the effectiveness of intervention. In Mexico, foreign exchange sales have a small impact on the exchange rate level and raise short-term volatility, while in Turkey, intervention does not appear to affect the exchange rate level but reduces its shortterm volatility. In both cases, the findings are consistent with officially stated policy objectives, which aim to minimize the effect of intervention on the exchange rate, but cast doubt on claims that intervention is a useful tool for smoothing volatility. Although these findings cannot be generalized to other emerging markets, intervention's apparently limited effectiveness highlights the need for central banks to use their scarce foreign reserves selectively and parsimoniously.
Author: Santiago García-Verdú
Publisher:
ISBN:
Category : Foreign exchange market
Languages : en
Pages : 38
Get Book Here
Book Description
Author: Romain Lafarguette
Publisher: International Monetary Fund
ISBN: 1513569406
Category : Business & Economics
Languages : en
Pages : 33
Get Book Here
Book Description
This paper presents a rule for foreign exchange interventions (FXI), designed to preserve financial stability in floating exchange rate arrangements. The FXI rule addresses a market failure: the absence of hedging solution for tail exchange rate risk in the market (i.e. high volatility). Market impairment or overshoot of exchange rate between two equilibria could generate high volatility and threaten financial stability due to unhedged exposure to exchange rate risk in the economy. The rule uses the concept of Value at Risk (VaR) to define FXI triggers. While it provides to the market a hedge against tail risk, the rule allows the exchange rate to smoothly adjust to new equilibria. In addition, the rule is budget neutral over the medium term, encourages a prudent risk management in the market, and is more resilient to speculative attacks than other rules, such as fixed-volatility rules. The empirical methodology is backtested on Banco Mexico’s FXIs data between 2008 and 2016.
Author: Ilker Domaç
Publisher: World Bank Publications
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 33
Get Book Here
Book Description
Author: Mr.Jorge Iván Canales Kriljenko
Publisher: International Monetary Fund
ISBN: 9781589064218
Category : Business & Economics
Languages : en
Pages : 58
Get Book Here
Book Description
Despite increasing exchange rate flexibility, central banks in emerging markets still intervene in their foreign exchange markets for several reasons. In doing so, they face many operational questions, including on the degree of transparency and the choice of markets and counterparties. This paper identifies elements of best practice in official foreign exchange intervention, presents survey evidence on intervention practices in developing countries, and assesses the effectiveness of intervention in Mexico and Turkey.
Author: Ms.Inci Ötker
Publisher: International Monetary Fund
ISBN: 1451853548
Category : Business & Economics
Languages : en
Pages : 38
Get Book Here
Book Description
This paper estimates a speculative attack model of currency crises in order to identify the role of economic fundamentals and any early warning signals of a potential currency crisis. The data from the Mexican economy was used to illustrate the model. Based on the results, a deterioration in fundamentals appears to have generated high one-step-ahead probabilities for the regime changes during the sample period 1982-1994. Particularly, increases in inflation differentials, appreciations of the real exchange rate, foreign reserve losses, expansionary monetary and fiscal policies, and increases in the share of short-term foreign currency debt appear to have contributed to the market pressures and regime changes in that period.
Author: Mr.Marcos d Chamon
Publisher: International Monetary Fund
ISBN: 1484375688
Category : Business & Economics
Languages : en
Pages : 320
Get Book Here
Book Description
Foreign exchange intervention is widely used as a policy tool, particularly in emerging markets, but many facets of this tool remain limited, especially in the context of flexible exchange rate regimes. The Latin American experience can be informative because some of its largest countries adopted floating exchange rate regimes and inflation targeting while continuing to intervene in foreign exchange markets. This edited volume reviews detailed accounts from several Latin American countries’ central banks, and it provides insight into how and with what aim many interventions were decided and implemented. This book documents the effectiveness of intervention and pays special attention to the role of foreign exchange intervention policy within inflation-targeting monetary frameworks. The main lesson from Latin America’s foreign exchange interventions, in the context of inflation targeting, is that the region has had a considerable degree of success. Transparency and a clear communication policy have been key. For economies that are not highly dollarized, rules-based intervention helped contain financial instability and build international reserves while preserving inflation targets. The Latin American experience can help other countries in the design and implementation of their policies.
