The Imf's Reserves Template and Nominal Exchange Rate Volatility

24 Pages Posted: 12 Jan 2007

See all articles by John Cady

John Cady

International Monetary Fund (IMF) - Statistics Department

Jesus Gonzalez-Garcia

International Monetary Fund (IMF)

Date Written: December 2006

Abstract

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

Cady, John and Gonzalez-Garcia, Jesus, The Imf's Reserves Template and Nominal Exchange Rate Volatility (December 2006). IMF Working Paper No. 06/274. Available at SSRN: https://ssrn.com/abstract=956737

John Cady (Contact Author)

International Monetary Fund (IMF) - Statistics Department ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Jesus Gonzalez-Garcia

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Room: HQ2 10A-572
Washington, DC 20431
United States
(202) 6236310 (Phone)
(202) 6236159 (Fax)

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