scholarly journals Excessive accumulation of foreign exchange reserves: the role of political regimes and central bank independence

2020 ◽  
Vol 2020 (4) ◽  
pp. 27-51
Author(s):  
Viktor KOZIUK ◽  
Keyword(s):  
Central Bank ◽  
Foreign Exchange ◽  
Central Bank Independence ◽  
Political Regimes ◽  
Foreign Exchange Reserves ◽  
Excessive Accumulation

scholarly journals Modeling Sources of Asymmetry in the Volatility of the Moroccan Dirham Exchange Rate

2021 ◽  
Vol 8 (4) ◽  
pp. 31
Author(s):  
KHATTAB Ahmed ◽  
SALMI Yahya
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Exchange Rates ◽  
Foreign Exchange ◽  
Selection Criterion ◽  
Econometric Models ◽  
Interbank Market ◽  
Foreign Exchange Reserves ◽  
Central Bank Intervention ◽  
The Exchange Rate

The main objective of this paper is to study the sources of asymmetry in the volatility of the bilateral exchange rates of the Moroccan dirham (MAD), against the EUR and the USD using the asymmetric econometric models of the ARCH-GARCH family. An empirical analysis was conducted on daily central bank data from March 2003 to March 2021, with a sample size of 4575 observations. Central bank intervention in the foreign exchange (interbank) market was found to affect the asymmetry in the volatility of the bilateral EUR/MAD and USD/MAD exchange rates. Specifically, sales of foreign exchange reserves by the monetary authority cause a fall in the exchange rate, which means that the market response to shocks is asymmetric. Finally, the selection criterion (AIC) allowed us to conclude that the asymmetric model AR(1)-TGARCH(1,1) is adequate for modeling the volatility of the exchange rate of the Moroccan dirham.

scholarly journals Management of Foreign Exchange Reserves of the European Central Bank

2021 ◽  
Vol 127 ◽  
pp. 499-512
Author(s):  
Paweł Sitek
Keyword(s):  
Central Bank ◽  
Foreign Exchange ◽  
European Central Bank ◽  
Central Banks ◽  
Future Generations ◽  
Management Policy ◽  
Foreign Exchange Reserves ◽  
Foreign Reserve ◽  
European Central ◽  
Reserve Management

The aim of the article is to analyze the foreign exchange reserves of the European Central Bank and the methods of their modern management. As a result of the study, it was proven that when implementing foreign reserve management policy, the European Central Bank and national central banks should pursue the objectives of the current monetary policy for future generations. Foreign exchange reserves are a special good that only the current generation and the current government cannot use. The character of the article implies different research methods: analysis of the sources of law, legal dogmatic, comparative dogmatic method. The analysis carried out as part of the study indicates that management of foreign exchange reserves of ECB has an impact on intergenerational justice.

scholarly journals Warehousing: A Historical Lesson in Central Bank Independence

2017 ◽  
pp. 1-4 ◽  
Author(s):  
Owen F. Humpage
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Foreign Exchange ◽  
Federal Reserve ◽  
Institutional Arrangement ◽  
Central Bank Independence ◽  
The Us ◽  
Foreign Exchange Exposure

This Economic Commentary explains how warehousing—a seemingly innocuous institutional arrangement between the Federal Reserve and the US Treasury—came to threaten the Fed’s independence. Warehousing began as an arcane procedure designed to help the Treasury cover a specific type of foreign-exchange exposure. It then grew into a supplemental source of funding for the Treasury's foreign-exchange interventions. Eventually the procedure morphed into a sizeable off-budget source of funding for other Treasury activities and seemed an inappropriate subversion of the congressional appropriations process, a development that raised concerns within the Fed about its ability to conduct monetary policy free from political concerns.

Trade Invoicing, Bank Funding, and Central Bank Reserve Holdings

2018 ◽  
Vol 108 ◽  
pp. 542-546 ◽  
Author(s):  
Gita Gopinath ◽  
Jeremy C. Stein
Keyword(s):  
Central Bank ◽  
Exchange Rates ◽  
Foreign Exchange ◽  
Banking System ◽  
Foreign Exchange Reserves ◽  
Reserve Currency ◽  
Bank Funding ◽  
Cross Country ◽  
Currency Composition ◽  
Bank Reserve

We develop a model that shows how the currency denomination of a country's imports influences the funding structure of its banking system, and in turn, the currency composition of its central bank's reserve holdings. The link between the dollar's role in bank funding and its role as a central bank reserve currency is stronger when the country's fiscal capacity is limited, and when exchange rates are volatile. In the data, there is a pronounced cross-country relationship between the fraction of imports that are dollar invoiced, and the fraction of central-bank foreign-exchange reserves that are held in dollars.

Sign in / Sign up

Export Citation Format

Share Document