On 2 and 3 December 2004, the BIS hosted a meeting of Deputy Governors of central banks from major emerging market economies to discuss foreign exchange market intervention. Some flavour of the discussion can be gleaned from the following central bank papers, along with papers prepared by BIS...

Bank Indonesia's main aim is to safeguard the stability of the rupiah. To this end, the Bank maintains foreign reserves that are sufficient in amount to achieve this monetary policy objective and also to meet international foreign currency obligations. Reserves are accumulated mainly from...

Policy normalisation in the major advanced economies affects emerging market economies (EMEs) through many channels, posing major challenges for their central banks. EMEs have adopted a policy toolkit including monetary, fiscal, exchange rate and macroprudential policies. Given many EMEs' high...

In recent years, the economic and financial environments have continued to confront emerging market economies, including Thailand, with challenges in conducting monetary and exchange rate policy. The unwinding of unconventional monetary policy, escalating trade tensions and disruption from new...

Emerging market economies (EMEs) have increased their reserves holdings primarily for self-insurance. The South African Reserve Bank (SARB) has accumulated its foreign exchange (FX) reserves for the same reason, recognising the need to reduce external vulnerability. Both debt issuance and the...

Unlike most central banks which target interest rates, Singapore runs an exchange rate-centred monetary policy framework, in which the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) is the intermediate target of monetary policy. The S$NEER fluctuates within a policy band that is...

Russia introduced its inflation targeting regime in 2015. Subsequently, fiscal policy was changed with a view to reducing the economy's dependence on natural resource prices; these changes are known as “the fiscal rule”. At the same time, a financial stability policy and its instruments were...

This paper reviews the Peruvian experience in using FX intervention and reserve requirements for macroprudential purposes, with the aim of limiting the financial risks associated with dollarisation. Peru is a successful market-driven case of dedollarisation, which reflects both macroeconomic...

This note outlines Mexico's recent experience with three closely interrelated issues. First, on the basis of a legal framework regulating transactions in foreign currency between the central bank and government entities, and preannounced market-based mechanisms, the stock of international...