Foreign exchange interventions in a small emerging market: the case of Croatia

Égert, Balázs; Lang, Maroje

doi:10.1007/s10644-007-9019-z

Cited by 4 publications

(2 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Égert and Lang (2006) examine interventions for Croatia during the same time as Chmelarova and Schnabl (2006). Interventions were able to impact the exchange rate level to some extent, whereas the effect on volatility changed according to conditions.…”

Section: Empirical Findings On Intervention Impact In Emerging Marmentioning

confidence: 99%

Foreign Exchange Intervention in Emerging Markets: A Survey of Empirical Studies

Menkhoff

2013

World Economy

113

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Nowadays foreign exchange interventions occur in emerging market economies whereas empirical studies on interventions mainly refer to advanced economies. However, interventions in emerging markets are different from those in advanced economies: they occur "regularly" and central banks have considerable leverage, derived from relatively high reserves, some non-sterilization, the central bank's information advantage and capital controls. Consequently, these interventions often successfully impact the level and volatility of exchange rates. Nevertheless, more research on interventions in emerging markets is needed analyzing the influence of heterogeneous institutional circumstances, examining the role of central bank communication and using high-frequency data. Terms of use: Documents in EconStor may JEL-Classification: F 31 (foreign exchange), E 58 (central banks and their policies), O 23(monetary policy in development) Keywords:foreign exchange, central bank intervention, emerging markets, transmission channelsFor helpful comments and research assistance I would like to thank Fabian Baetje, Oliver Gloede, Marie Holzhausen, two anonymous referees and the associate editor, Zhihong Yu.Leibniz Universität Hannover, Department of Economics, Königsworther Platz 1, D-30167 Hannover, Germany; menkhoff@gif.uni-hannover.de 2 Foreign Exchange Intervention in Emerging Markets:A Survey of Empirical Studies IntroductionThere is a broad literature on various aspects of foreign exchange interventions which is still focused on advanced economies, in particular regarding empirical intervention studies.By contrast, the world economy is changing towards a continuously increasing importance of emerging market economies. This move is particularly pronounced in foreign exchange as advanced economy countries are not the main owners of currency reserves anymore. Change is even more dramatic regarding foreign exchange interventions as the major central banksdomiciled in the advanced economies -have almost stopped intervening during the last decade or so. This leads to the unpleasant situation that most of our empirical research and literature refers to institutional circumstances that do no longer fit the typical case in the present world: foreign exchange intervention is nowadays mainly an issue in emerging markets. This study discusses available knowledge and open questions with a focus on empirical research.The existing discrepancy between intervention reality and empirical inte...

show abstract

Section: Empirical Findings On Intervention Impact In Emerging Marmentioning

confidence: 99%

Foreign Exchange Intervention in Emerging Markets: A Survey of Empirical Studies

Menkhoff

2013

World Economy

113

View full text Add to dashboard Cite

show abstract

“…Several empirical methodologies have been used to assess the effectiveness of FX interventions in influencing exchange rate movements and/or their volatility, including twostage IV models (Disyatat and Galati, 2007;Adler and Tovar, 2014;Adler and others, 2019), ARDL models (Dominguez and others, 2013), GARCH-type models (Ardic and Selcuk, 2006;Edison and others, 2006;Egert and Komarek, 2006;Egert and Lang, 2006;Gersl and Holub, 2006), Markov-switching models (Humala and Rodriguez, 2010), and time-varying parameter models (Akinci and others, 2006). The challenge for time-series analysis of high frequency data is that exchange rates are typically highly volatile on a day-to-day basis and FX interventions take place sporadically over the sample period (Fatum and Hutchison, 2003).…”

Section: Literature Reviewmentioning

confidence: 99%

Unveiling the Effects of Foreign Exchange Interventions

Poghosyan

2020

IMF Working Papers

View full text Add to dashboard Cite

This paper analyzes determinants and consequences of FX interventions in the Kyrgyz Republic. Most of the literature on the topic focuses on advanced and emerging economies and this paper provides new evidence from a low-income country. We find that FX interventions take place in response to movements in the exchange rate and its volatility. There is also evidence of “leaning against the wind”, which is more pronounced for relatively larger FX sales and purchases. The “leaning against the wind” is asymmetric toward FX sales and largely reflects leaning against depreciation of domestic currency. We document a varying degree of de-facto exchange rate stability despite the de-jure floating exchange rate regime. During most of the sample, the exchange rate management index was relatively low in line with the floating exchange rate regime, with the exception of the period from 2018 Q4 until the COVID-19 shock, during which the exchange rate management index was relatively high.

show abstract

The stationarity of inflation in Croatia: anti-inflation stabilization program and the change in persistence

Gil-Alana

Mervar

Payne

2016

Econ Change Restruct

View full text Add to dashboard Cite

Foreign exchange interventions in a small emerging market: the case of Croatia

Abstract: Central bank intervention, Foreign exchange intervention, Official interventions, Foreign exchange market, Effectiveness, Exchange rate volatility, Emerging economies, Transition economies, F31,

Cited by 4 publications

References 19 publications

Foreign Exchange Intervention in Emerging Markets: A Survey of Empirical Studies

Foreign Exchange Intervention in Emerging Markets: A Survey of Empirical Studies

Unveiling the Effects of Foreign Exchange Interventions

The stationarity of inflation in Croatia: anti-inflation stabilization program and the change in persistence

Contact Info

Product

Resources

About