Central banks in emerging market economies have accumulated large foreign exchange assets

2018 ◽  
Keyword(s):  
Foreign Exchange ◽  
Emerging Market ◽  
Central Banks ◽  
Emerging Market Economies ◽  
Market Economies

scholarly journals Patterns of Foreign Exchange Intervention under Inflation Targeting

2020 ◽  
Vol 20 (69) ◽  
Author(s):  
Gustavo Adler ◽  
Kyun Suk Chang ◽  
Zijiao Wang
Keyword(s):  
Foreign Exchange ◽  
Inflation Targeting ◽  
Foreign Currency ◽  
Emerging Market ◽  
Policy Instrument ◽  
Emerging Market Economies ◽  
Foreign Exchange Intervention ◽  
Market Economies ◽  
Monetary Regimes ◽  
Emerging Market Countries

The paper documents the use of foreign exchange intervention (FXI) across countries and monetary regimes, with special attention to its use under inflation targeting (IT). We find significant differences between advanced and emerging market economies, with the former group conducting FXI limitedly and broadly symmetrically, while the use of this policy instrument in emerging market countries is pervasive and mostly asymmetric (biased towards purchasing foreign currency, even after taking into account precautionary motives). Within emerging markets, the use of FXI is common both under IT and non-IT regimes. We find no evidence of FXI being used in response to inflation developments, while there is strong evidence that FXI responds to exchange rates, indicating that IT central banks in EMDEs have dual inflation/exchange rate objectives. We also find a higher propensity to overshoot inflation targets in emerging market economies where FXI is more pervasive.

Summary of Informal Discussions with Central Bankers and Other Officials on Unconventional Monetary Policies

Policy Papers ◽  
2013 ◽  
Vol 2013 (36) ◽  
Author(s):  
Keyword(s):  
Emerging Market ◽  
Central Banks ◽  
Emerging Market Economies ◽  
Conference Calls ◽  
Monetary Policies ◽  
Market Economies ◽  
Key Points ◽  
Central Bankers

A series of conference calls was held in March 2013 with selected representatives of central banks and other official agencies in advanced and emerging market economies to seek views on unconventional monetary policies (UMP). The key points raised during the discussions are summarized below. No views have been attributed to individual participants, and Fund staff is ultimately responsible for the contents of this summary.

Harinder S. Kohli (ed.). Growth and Development in Emerging Market Economies: International Private Capital Flows, Financial Markets and Globalisation. New Delhi: Sage Publication 2008. 369 pages. Hardbound. Indian Rs 695.00.

2008 ◽  
Vol 47 (3) ◽  
pp. 304-305
Author(s):  
Henna Ahsan
Keyword(s):  
Capital Flows ◽  
Growth And Development ◽  
Global Economy ◽  
Emerging Market ◽  
Balance Sheet ◽  
Emerging Market Economies ◽  
New Delhi ◽  
Infrastructure Development ◽  
Market Economies ◽  
Emerging Market Countries

The book discusses the different experiences in Asia and Latin America, while covering the closely related areas under the purview of Emerging Market Economies (EMEs). The first chapter, “Introduction and Overview” has written by Harinder S. Kohli gives an excellent review of the existing literature on the subject. The book discusses six related topics which include nine papers presented at the Emerging Markets Forum Meeting held in Jakarta, Indonesia, in September 2006. The book highlights the main factors of growth and development in Emerging Market Economies (EMEs) now closely related with international capital flows, development of financial market, the countries’ ability to integrate successfully with the global economy through trade and investment and their ability to forge public-private partnerships including infrastructure development. Chapter 2, of the book is an article titled “Global Imbalances, Oil Revenues and Capital Flows to Emerging Market Countries” by Jack Boorman explains the favourable global environment and its impact on capital flows to Emerging Market Countries (EMCs). The EMCs got advantage from this benign global economic environment, such as high economic growth rate, increase in exports, better national balance sheet and increase in foreign exchange reserves, but due to high oil prices the situation has been changed.

Sign in / Sign up

Export Citation Format

Share Document