scholarly journals Is Official Exchange Rate Intervention Effective?

Economica ◽  
2004 ◽  
Vol 71 (281) ◽  
pp. 1-11 ◽  
Author(s):  
Mark P. Taylor
Keyword(s):  
Exchange Rate ◽  
Official Exchange Rate ◽  
Exchange Rate Intervention

scholarly journals Cien años de moneda en Castilla (1172-1268). El siglo del maravedí de oro = One Hundred Years of Currency in Castile (1172-1268). The Century of the Gold Maravedi

2018 ◽  
pp. 483
Author(s):  
Gonzalo Oliva Manso
Keyword(s):  
Exchange Rate ◽  
Time Span ◽  
Gold Coin ◽  
La Plata ◽  
Monetary System ◽  
Official Exchange Rate ◽  
El Sistema ◽  
The Exchange Rate

A lo largo del siglo que abarca nuestro trabajo estudiamos primero la documentación disponible para a continuación calcular matemáticamente las equivalencias que regían el sistema monetario. El cambio entre el maravedí de oro y los dineros de vellón estuvo sometido a constantes tensiones debidas a la creciente tendencia del oro a apreciarse respecto a la plata y a las manipulaciones unilaterales de los dineros por parte del rey. El cambio oficial no reflejaba estos cambios con la suficiente rapidez y los actores económicos empezaron a fijar sus propias condiciones en los negocios privados. Las distorsiones producidas en la economía por el intervencionismo regio fueron combatidas con más intrusión con la imposición de tasas de precios y prohibiciones a la exportación. Al final de nuestro período de estudio el maravedí alfonsí deja paso a la dobla como moneda de oro de referencia mientras los dineros de vellón inician un período de devaluaciones continuas.Firstly, we will analyze the documentation available, covering a time span of over a century, to calculate mathematically the rates within the monetary system on the basis of these sources. The exchange rate between the gold maravedí and the dinero de vellón was subjected to constant stresses due to the growing tendency of gold to appreciate with respect to silver and the unilateral manipulation of the value of the dinero by the king. The official exchange rate did not reflect these changes fast enough, and economic actors began to set their own conditions in their private transactions. The distortion produced in the economy by royal interventionism was fought with further encroachment through the implementation of price rates and export bans. At the end of our period of study, the maravedí alfonsí gave way to the dobla as the gold coin of reference, while the dinero de vellón began a period of constant devaluation.

scholarly journals Optimal Foreign Exchange Rate Intervention in Lévy Markets

2014 ◽  
Vol 2014 ◽  
pp. 1-8 ◽  
Author(s):  
Masimba Aspinas Mutakaya ◽  
Eriyoti Chikodza ◽  
Edward T. Chiyaka
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Impulse Control ◽  
Value Function ◽  
Quasivariational Inequalities ◽  
Expected Number ◽  
A Value ◽  
The Exchange Rate ◽  
Intervention Costs ◽  
Exchange Rate Intervention

This paper considers an exchange rate problem in Lévy markets, where the Central Bank has to intervene. We assume that, in the absence of control, the exchange rate evolves according to Brownian motion with a jump component. The Central Bank is allowed to intervene in order to keep the exchange rate as close as possible to a prespecified target value. The interventions by the Central Bank are associated with costs. We present the situation as an impulse control problem, where the objective of the bank is to minimize the intervention costs. In particular, the paper extends the model by Huang, 2009, to incorporate a jump component. We formulate and prove an optimal verification theorem for the impulse control. We then propose an impulse control and construct a value function and then verify that they solve the quasivariational inequalities. Our results suggest that if the expected number of jumps is high the Central Bank will intervene more frequently and with large intervention amounts hence the intervention costs will be high.

scholarly journals Exchange Rate and Demand for Money in Nigeria

2015 ◽  
Vol 7 (2) ◽  
pp. 21
Author(s):  
BigBen Chukwuma Ogbonna
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Foreign Exchange ◽  
Money Demand ◽  
Black Market ◽  
Easy Access ◽  
Market Exchange ◽  
Demand Model ◽  
Demand For Money ◽  
Official Exchange Rate

<p>This study is designed to examine empirically the impact of exchange rate on the stability of demand for money in Nigeria where official and black market exchange rates operate side by side due to exchange controls. Variants of money demand model are estimated using monthly data for the period of 2005-2013. Cointegration and system equation techniques combined with CUSUM and CUSUMSQ tests are employed in the data analysis. Results indicate that in all the variants of the money demand model, coefficients of exchange rates variable (official or black market exchange rates) manifest significant <em>t</em> statistics, meaning that the null hypothesis of restricting the coefficients of exchange rates in money demand model in Nigeria is rejected for each variant. This suggests that coefficient of exchange rates variable (OMEXR or BMEXR) belongs to the cointegrating space in all the instances. Judging from the freakiness of the coefficients of the variants of the money demand function and the results of the tests for stability of the models combined, the most appropriate  demand for money function for Nigeria appear to be the one that includes M1, the interest rate, inflation rate, and official exchange rate. This implies that in Nigeria, a greater percentage of the foreign exchange demand may be public sector driven and substantial percentage of the private sector foreign exchange needs is sourced from the official exchange rate market due to the substantial disparity between the two rates. This may mean consumers’ easy access to official exchange rate and transparency in the operation of official exchange rate market in Nigeria.</p>

Argentine elections will drive monetary expansion

2015 ◽  
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Policy Framework ◽  
Close Monitoring ◽  
Exchange Market ◽  
Content Type ◽  
Official Exchange Rate ◽  
The Government ◽  
Nominal Anchor ◽  
Monetary Policy Framework

Subject The Central Bank's 2015 monetary programme. Significance The Central Bank's (BCRA) 2015 monetary programme indicates that the main features of the current monetary policy framework -- characterised by an expansionary bias, foreign exchange controls and close monitoring of the informal exchange market -- will continue this year. Impacts The government will prioritise exchange rate stability, at the expense of economic activity. The BCRA will continue using the official exchange rate as a nominal anchor. Foreign exchange controls may be extended to discourage devaluation expectations and to protect international reserves.

Misleading Official Exchange-Rate Conversions

1975 ◽  
Vol 85 (337) ◽  
pp. 140 ◽  
Author(s):  
Marie Hulsman-Vejsova
Keyword(s):  
Exchange Rate ◽  
Official Exchange Rate
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