FX Intervention: Goals, Strategies and Tactics
20 Pages Posted: 13 Dec 2019
Date Written: October 31, 2019
Foreign exchange intervention is an important tool for central banks in many emerging market economies (EMEs). Drawing on a recent survey of 21 EME central banks as well as inputs from their contributions published in this volume, this paper summarises the main issues with regard to FX intervention. It focusses on the goals, channels, effectiveness and the different methods and tactics used by central banks. It leverages data from similar surveys conducted in the past to illustrate how central banks’ views and conduct have evolved over the years along each of these dimensions.
Full Publication: Reserve Management and FX Intervention
Keywords: FX intervention, exchange rate, emerging market economies
JEL Classification: F31, E58, E52
Suggested Citation: Suggested Citation