scholarly journals Central Bank´s Foreign Exchange Reserves Accumulation and Dynamics of Banking System Liquidity Absorption: The Case of the Czech Republic, Poland and Hungary

2010 ◽  
Vol 58 (6) ◽  
pp. 723-746 ◽  
Author(s):  
Karel Brůna
Keyword(s):  
Czech Republic ◽  
Central Bank ◽  
Foreign Exchange ◽  
Banking System ◽  
Foreign Exchange Reserves ◽  
The Czech Republic

Trade Invoicing, Bank Funding, and Central Bank Reserve Holdings

2018 ◽  
Vol 108 ◽  
pp. 542-546 ◽  
Author(s):  
Gita Gopinath ◽  
Jeremy C. Stein
Keyword(s):  
Central Bank ◽  
Exchange Rates ◽  
Foreign Exchange ◽  
Banking System ◽  
Foreign Exchange Reserves ◽  
Reserve Currency ◽  
Bank Funding ◽  
Cross Country ◽  
Currency Composition ◽  
Bank Reserve

We develop a model that shows how the currency denomination of a country's imports influences the funding structure of its banking system, and in turn, the currency composition of its central bank's reserve holdings. The link between the dollar's role in bank funding and its role as a central bank reserve currency is stronger when the country's fiscal capacity is limited, and when exchange rates are volatile. In the data, there is a pronounced cross-country relationship between the fraction of imports that are dollar invoiced, and the fraction of central-bank foreign-exchange reserves that are held in dollars.

scholarly journals Modeling Sources of Asymmetry in the Volatility of the Moroccan Dirham Exchange Rate

2021 ◽  
Vol 8 (4) ◽  
pp. 31
Author(s):  
KHATTAB Ahmed ◽  
SALMI Yahya
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Exchange Rates ◽  
Foreign Exchange ◽  
Selection Criterion ◽  
Econometric Models ◽  
Interbank Market ◽  
Foreign Exchange Reserves ◽  
Central Bank Intervention ◽  
The Exchange Rate

The main objective of this paper is to study the sources of asymmetry in the volatility of the bilateral exchange rates of the Moroccan dirham (MAD), against the EUR and the USD using the asymmetric econometric models of the ARCH-GARCH family. An empirical analysis was conducted on daily central bank data from March 2003 to March 2021, with a sample size of 4575 observations. Central bank intervention in the foreign exchange (interbank) market was found to affect the asymmetry in the volatility of the bilateral EUR/MAD and USD/MAD exchange rates. Specifically, sales of foreign exchange reserves by the monetary authority cause a fall in the exchange rate, which means that the market response to shocks is asymmetric. Finally, the selection criterion (AIC) allowed us to conclude that the asymmetric model AR(1)-TGARCH(1,1) is adequate for modeling the volatility of the exchange rate of the Moroccan dirham.

scholarly journals Management of Foreign Exchange Reserves of the European Central Bank

2021 ◽  
Vol 127 ◽  
pp. 499-512
Author(s):  
Paweł Sitek
Keyword(s):  
Central Bank ◽  
Foreign Exchange ◽  
European Central Bank ◽  
Central Banks ◽  
Future Generations ◽  
Management Policy ◽  
Foreign Exchange Reserves ◽  
Foreign Reserve ◽  
European Central ◽  
Reserve Management

The aim of the article is to analyze the foreign exchange reserves of the European Central Bank and the methods of their modern management. As a result of the study, it was proven that when implementing foreign reserve management policy, the European Central Bank and national central banks should pursue the objectives of the current monetary policy for future generations. Foreign exchange reserves are a special good that only the current generation and the current government cannot use. The character of the article implies different research methods: analysis of the sources of law, legal dogmatic, comparative dogmatic method. The analysis carried out as part of the study indicates that management of foreign exchange reserves of ECB has an impact on intergenerational justice.

scholarly journals Monetary Policy Before and After the Financial Crisis and Its Economic and Legislative Impacts – Case of The Czech Republic

2019 ◽  
Author(s):  
Liběna Černohorská ◽  
Jana Janderová ◽  
Veronika Procházková
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Financial Crisis ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Inflation Targeting ◽  
Constitutional Court ◽  
The Czech Republic ◽  
Before And After ◽  
National Economies

The article analyses monetary policy response to the world financial crisis and focuses more closely on the monetary policy of the Czech National Bank (CNB) at this time. Until 2007, the implementation of monetary policy in OECD countries was perceived very positively. However, the financial crisis has clearly shown that the world’s financial markets are highly interconnected, and this can have a major impact on individual national economies. Therefore, the monetary policy strategy has changed from a policy based on the so-called flexible inflation targeting. Ensuring price stability is emphasised as part of the monetary policy role of the CNB in the provisions of Article 98 of the Constitution, in the Czech Republic. CNB is perceived as one of the most independent central banks, the contituional dimension of its independence being confirmed by case law of the Czech Constitutional Court. In response to the financial crisis, CNB was forced to pursue unconventional monetary policy in the form of foreign exchange interventions between 2013 and 2017. However, during the time period of these interventions, CNB policy did not lead to achievement of the inflation target. Following the completion of foreign exchange interventions, CNB returned to conventional monetary policy through interest rates.

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