The main objective of this study is to examine the existence and nature of the relationship between the exchange rate and foreign exchange reserves. To avoid influencing foreign exchange market expectations, the intervention program should indicate in advance the nature, frequency, and size of the central bank's foreign exchange transactions. Thus, in this sense, it is essential to determine the nature of the relationship between the exchange rate and the interventions made from and for the official foreign exchange reserve. Following the realization of this study, it was highlighted the conclusion that through the application of Johansen cointegration tests, between the pairs of variables - NEER and the interventions from/for the foreign exchange reserve; official exchange rate and interventions in/for the foreign exchange reserve - there is at least one cointegration relationship. That is, between the exchange rate and the interventions in/for the foreign exchange reserve, a long-term relationship is highlighted, which can facilitate the forecast.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2025 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.