Foreign Exchange Intervention and Reserve Accumulation in an Emerging Market Economy : Selected Issues

The exchange rate plays a substantial role in the monetary and financial stability frameworks of emerging market economies. We look at the motivation behind foreign exchange intervention, including a thin foreign exchange market, high passthrough and foreign exchange as a determinant of inflation expectations. We examine how these features are reflected in the design of the new monetary regime in Argentina. Finally, we look at how reserve management policy can also incorporate the particular shocks faced by the economy.Full Publication: "https://ssrn.com/abstract=3497854" Reserve Management and FX Intervention