Central Bank Interventions and Implied Exchange Rate Correlations

2007 ◽  
Author(s):  
Jussi Nikkinen ◽  
Sami Vähämaa
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Central Bank Interventions

scholarly journals An Interpretation of Recent Research on Exchange Rate Target Zones

1992 ◽  
Vol 6 (4) ◽  
pp. 119-144 ◽  
Author(s):  
Lars E. O Svensson
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Exchange Rates ◽  
Interest Rates ◽  
Empirical Research ◽  
Target Zones ◽  
The Difference ◽  
Exchange Rate Target Zones ◽  
Main Ideas ◽  
Central Bank Interventions

How do exchange rate bands work compared to completely fixed rates (between realignments); or, more precisely, what are the dynamics of exchange rates, interest rates, and central bank interventions within exchange rate bands? Does the difference between bands and completely fixed exchange rates matter, and if so, which of the two arrangements is best; or, more precisely, what are the tradeoffs that determine the optimal bandwidth? This article will present an interpretation of some selected recent theoretical and empirical research on exchange rate target zones, with emphasis on main ideas and results and without technical detail.

scholarly journals Rebound Effects of Exchange Rate and Central Bank Interventions in Selected ECOWAS Countries

2017 ◽  
Author(s):  
Mustapha Akinkunmi
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Central Bank Intervention ◽  
Positive Direction ◽  
Rebound Effects ◽  
Modelling Framework ◽  
Monetary Authorities ◽  
The Exchange Rate ◽  
Central Bank Interventions ◽  
The Impact

This study examines the exchange rate rebound effects of the Central Bank intervention in the selected ECOWAS economies. An empirical understanding of these effects is very important to trade adjustment as well as the macroeconomic stability in these countries. Using the panel data modelling framework, the study finds that the impact of the Central Bank intervention on exchange rate is insignificant and it does not lead to the exchange rate rebound. In addition, money supply as well as monetary policy rate implemented by the monetary authorities significantly influences the level of exchange rate in a positive direction.

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