We investigate the effects of Central Bank interventions which are designed to smooth exchange rate volatility but are … market order flow. Simulations show that small daily drifts, Brexit-led in the case of Bank of England and commodity …-driven in the Central Bank of Brazil, lead to major impacts on both the stock of foreign reserves and the distribution of …

Are nominal exchange rate variations linked to the central bank's balance sheet? We use two measures of implied … exchange rates using central bank balance sheet data: one is a traditional measure that includes the monetary base, and the … between central bank balance sheet components. Then, we use threshold cointegration techniques to compare these two measures …