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An empirical test for the effectiveness of central bank interventions in foreign exchange markets: An application to the Canadian and Swiss Central Banks

Journal of Economics and Political Economy

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Field Value
 
Title An empirical test for the effectiveness of central bank interventions in foreign exchange markets: An application to the Canadian and Swiss Central Banks
 
Creator ABBUY, Kwami Edem;



 
Subject Volatility; Exchange rate; Official international reserves.
E51; E52; E58.
 
Description Abstract. This paper investigates the effectiveness of foreign exchange intervention of central banks of Canada and Switzerland. We examine the effectiveness of Canada and Switzerland interventions policies on Canadian dollar against US dollar and Swiss franc against US dollar exchange rates volatility over the 1980-2014 period. A behavioral exchange rate equation is estimated with instrumental variables methodology. The main results indicate that interventions generally reduce exchange rates volatility. However, the Swiss National Bank seems to be more efficient by stabilizing the Swiss franc than the Bank of Canada, whose interventions, despite its effectiveness, remains weak.Keywords. Volatility, Exchange rate, Official international reserves.JEL. E51, E52, E58.
 
Publisher Journal of Economics and Political Economy
Journal of Economics and Political Economy
 
Contributor —
 
Date 2018-12-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEPE/article/view/1761
10.1453/jepe.v5i4.1761
 
Source Journal of Economics and Political Economy; Vol 5, No 4 (2018): December; 450-458
Journal of Economics and Political Economy; Vol 5, No 4 (2018): December; 450-458
2148-8347
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEPE/article/view/1761/1798
http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1761/899
 
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http://creativecommons.org/licenses/by-nc/4.0