The Limitations of Foreign-Exchange Intervention: Lessons from Switzerland
2013 ◽
pp. 1-6
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Since the mid-1990s, monetary authorities in most large developed countries have backed away from foreign-exchange intervention—buying and selling foreign currencies to influence exchange rates. Switzerland's recent experience goes a long way to illustrate why: Foreign-exchange intervention did not afford the Swiss National Bank with a means of systematically affecting the franc independent of Swiss monetary policy, and it left the Bank exposed to foreign-exchange losses. To affect exchange rates, central banks must change their monetary policies.
2021 ◽
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2019 ◽
Vol 53
(3)
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pp. 43
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