The Imf's Reserves Template and Nominal Exchange Rate Volatility
24 Pages Posted: 12 Jan 2007
Date Written: December 2006
The effects of the adoption of the IMF's International Reserves and Foreign Currency Liquidity Data Template on nominal exchange rate volatility are investigated for 48 countries. Estimation of panel data models indicates that nominal exchange rate volatility decreases following dissemination of reserves template data while the effects of indebtedness and reserve adequacy on volatility exhibit statistically significant changes.
Keywords: Exchange rate variability, Foreign exchange reserves, Liquidity, Transparency, Special Data Dissemination Standard, Economic models
JEL Classification: F31, F33, G14
Suggested Citation: Suggested Citation