Title Unveiling the effects of foreign exchange interventions [electronic resource] : evidence from the Kyrgyz Republic / by Tigran Poghosyan.
Imprint [Washington, D.C.] : International Monetary Fund, 2020.©2020
Author Poghosyan, Tigran. author.
International Monetary Fund. issuing body.
Date 01-01-2020
Physical description 1 online resource (30 pages).
online resource
Series IMF working paper ; no. 20/219
IMF working paper ; no. 20/219.
Item WEB (Copy 1) INTRANET 1267886-1001 ONLINE
URL Available from internal network: http://err.parl.net/client/en_GB/search/asset/83471/0
Major subject Kyrgyzstan
Foreign exchange controls
Minor subject Economic models
Overseas item
Notes "October 2020"
Includes bibliographical references.
ISBN 9781513560151
Abstract 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.
LCN 1267886
Item ID 1267886-1001
Database Library Catalogue