After overtaking Japan as the world's largest holder of foreign exchange reserves in February 2006, China saw its foreign exchange reserves grow to $2,131.6bn by end-June 2009. Currently some 70% of China's foreign exchange reserves are reported to be in US dollars, with most invested in US...

This paper attempts to shed light on the effectiveness of central bank intervention through the noise trading channel. This channel suggests that central banks should intervene in highly volatile market periods and keep their interventions secret. We conduct an empirical study for the Reserve...

In this paper, we empirically investigate the episodes of currency market stress/crisis in India during the period 1992 – 2012 with the help of a monthly EMP index for India constructed for this period. For the purpose of this paper, we define currency market stress as “extreme pressure”...

Several central banks in emerging economies are concerned with excessive volatility in foreign exchange markets and would like to control the direction and speed with which the value of their currency changes. Historically, currency market interventions have consisted of using foreign exchange...

Capital inflows to emerging market economies increased substantially following the global financial crisis and subsequent implementation of unconventional accommodative monetary policies in advanced economies. Strong portfolio inflows put significant appreciation pressure on emerging market...

This study primarily examines the extent of daily foreign exchange intervention by the Bangko Sentral ng Pilipinas (BSP) between 2005 and 2010, and its effectiveness in controlling the daily volatility of the exchange rate. Using an exponential GARCH model, we find that participation in the spot...

This study presents evidence of the renminbi's growing influence in the Asia-Pacific region. The CNH market - the offshore renminbi foreign exchange market in Hong Kong SAR - is found to exert an effect on Asian currencies that is distinct from that of the onshore (CNY) market. Changes in the...

This study presents evidence of the renminbi's growing influence in the Asia-Pacific region. The CNH market – the offshore renminbi foreign exchange market in Hong Kong SAR – is found to exert an effect on Asian currencies that is distinct from that of the onshore (CNY) market. Changes in...

I study the impact of US monetary policy on managed exchange rates by analyzing the pricing of American Depositary Receipts (ADRs) around FOMC meetings. The significant negative impact of US monetary surprises on abnormal ADR returns for currencies that are managed reflects changes in these...

Asymmetric effects of Central Bank foreign exchange (forex) intervention have not been extensively studied in the literature, even though in practice Central Bank's motives for purchasing and for selling foreign currency may differ. This paper studies asymmetric effects of Central Bank...