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The British foreign exchange reserves decreased by 40 percent during the period August 1996 - December 1999 although the Pound Sterling is considered a floating exchange rate since it left the EMS in 1992. Since changes in the level of foreign exchange reserves are usually taken as indicators...
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This paper examines the effect of administrative restrictions on cross-border capital transactions. Using highly disaggregated data from the German balance of payments statistics for the period from 1999 through 2017, we document several stylized facts about the effectiveness of such capital...
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Evidence on the effectiveness of FX interventions is either limited to short horizons or hampered by debatable identification. We address these limitations by identifying a structural vector autoregressive model for the daily frequency with an external instrument. Applying this approach to the...
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When firms trade forward contracts with banks to protect foreign currency cash flows against exchange rate movements …, firms substantially increased their use of derivatives in response to the heightened uncertainty; banks, in providing these … British pound in response to the referendum’s outcome posed a shock to the capital of ex-ante exposed banks. Banks, especially …
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